Vibracoustic opens first wholly owned plant in China

SHANGHAI -- German vibration control specialist Vibracoustic GmbH has launched production at its first wholly owned manufacturing facility in China.The plant - called Vibracoustic Yantai Co. - is based in the east coast province of Shandong. The factory makes bushings for passenger cars and air springs for commercial vehicles.Passenger cars account for 85 percent of Vibracoustic's component sales, while commercial vehicles generate 15 percent.Vibracoustic has invested 11 million euros in the building and tooling. A planned expansion will bring Vibracoustic's total investment up to 150 million yuan by 2014. "We always invest in new machinery step by step," said Zhichao Wang, CEO of Vibracoustic China.By 2015, the new plant will generate annual sales of 24 million euros (222 million yuan), Wang said.The new plant will allow the company to import fewer components from Europe, he said.Vibracoustic currently imports parts from Germany to supply customers such as Volkswagen AG, BMW AG and Daimler AG in China, said Wang. Last year, these imported parts generated sales in China of 100 million yuan.