SHANGHAI, China, April 21 /PRNewswire/ -- GKN plans to further expand its
automotive presence in China this year with a new joint venture to produce
engine components in Henan province.
    When fully operational, GKN Zhongyuan Cylinder Liners in Mengzhou City
will manufacture more than three-million cylinder liners annually for trucks
for both domestic use and export in the first stage.  Production is scheduled
to begin in 2006.
    The new joint venture builds on more than 17 years of growth in China by
GKN Driveline, the world's leading producer of driveline systems and
components.  GKN Driveline has been a pioneer in the development of China's
growing automotive infrastructure.
    GKN Group has six joint ventures in China, four of which are subsidiaries
of GKN Driveline.  GKN Driveline currently employs nearly 3,000 people in four
joint ventures throughout the country.
    With almost two decades of manufacturing experience in China and
production facilities in Shanghai, Jilin, Taiwan Hsin Chu and Kunshan, GKN
Driveline commands a leading share of the Chinese automotive market for
driveline products, supplying all of the country's major vehicle
manufacturers.
    "Over the past 17 years, GKN has established a clear reputation for
technology leadership with its business partnerships in China," said Ian
Griffiths, chief executive of GKN Automotive.  "No other Tier One driveline
supplier can match the depth and reach of our company's manufacturing
expertise in this all-important market.
    "Our facilities give GKN Driveline the ability to supply China's domestic
automotive market with the industry's widest range of Chinese-made advanced
driveline components," Griffiths noted.  "GKN supplies all of China's major
vehicle manufacturers and has a leading share of China's market for automotive
driveline products.  Our new joint venture in Henan province clearly
demonstrates our confidence in this important growth market."
    GKN's Shanghai operations supply driveline components for more than 40
vehicle programs; and SDS, GKN's joint venture with Shanghai Automotive
Industry Corporation, delivered more than 1.1 million vehicle sets and 320,000
propshafts to its customers in 2004.
    SDS has application engineering and testing facilities in Shanghai that
are supported by GKN Driveline's global network of research and product-
development centers.
    "SDS's fully equipped engineering center in Shanghai has the ability to do
all of the testing required to validate GKN Driveline products throughout
China," said Griffiths.
    GKN Driveline's history in China dates back to 1988 with the formation of
its first joint venture, Shanghai GKN Drive Shaft, for the manufacture of
sideshafts and propshafts for domestic and export markets.  Precision-forming
production was added at Shanghai in 2002.
    The company has been making driveline products at its Jilin joint venture
with Norinco in northern China since 1996.  Jilin GKN Norinco Drive Shaft
(JDS) manufactures sideshafts.
    Fujiwa Machinery Industry in Kunshan, north of Shanghai, is a joint
venture with Lioho of Taiwan.  This facility manufactures a variety of
castings for final drive units, brake drums and fly wheels.
    Through its operations in China, the GKN Group employs 2,600 people: 1,250
in Shanghai, 850 in Kunshan, 260 in Hsin Chu, 240 in Jilin, and by the end of
the year, another 400 at Mengzhou City.
    GKN Driveline will again exhibit at this year's automotive show (April 22-
28) in Shanghai.  GKN Driveline's display (Booth C 12 in Hall E2) includes a
wide range of components, including sideshafts, propshafts and torque-
management products.
    GKN Driveline is the world leader in sales of torque-management devices
and the number three independent manufacturer of high-quality geared
components.  GKN Driveline has the widest portfolio of torque-management
devices from mechanical, speed sensing to electronically controlled
differentials.

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