BorgWarner Inc. (BWA - Free Report) announced the opening of a new facility in Manesar, near New Delhi, India. The 86,000-square-foot facility will primarily manufacture exhaust gas recirculation (EGR) coolers, tubes, valves and modules.
The Manesar plant will replace the former facility in Faridabad and will expand the production capacity of the company. It will also support domestic and international automakers by providing sales, design, and test validation capabilities. The customers includes Maruti Suzuki, Mahindra & Mahindra, Renault, General Motors Company (GM - Free Report) , Tata Motors Limited (TTM - Free Report) , Fiat S.p.A. , Ashok Leyland, Volvo Eicher and others.
The EGR technologies help the auto companies to reduce nitrogen oxide (NOx) emission and meet strict emission regulations. The EGR systems are designed in such a manner that it can be used in any application from passenger cars to commercial trucks.
Management believes that the new facility will strengthen the market position of the company in EGR coolers business and will also support the rising demand for EGR products. With this, the company expects that Indian EGR business will improve by 35% over the next five years.
Moreover, the new BorgWarner facility in India is an eco-friendly facility. It makes maximum utilization of natural light and features LED lighting, which preserve energy and collects rainwater for landscaping and sanitation.
BorgWarner is a leading manufacturer of powertrain products for the world's major automakers. The company operates in 57 locations in 19 countries, providing products that are capable of improving vehicle performance and stability along with fuel efficiency and emission levels. It retains a Zacks Rank #3 (Hold).
BorgWarner posted a 3.5% increase in profits to $1.19 per share (excluding non-recurring items) in the third quarter of the year from $1.15 in the same quarter of 2011. The profit was in line with the Zacks Consensus Estimate.
Revenues dipped 5% to $1.7 billion due to a 6% fall in light vehicle production in Europe, which comprises over half of the company’s ales. However, excluding the impact of foreign currencies and dispositions in 2011, net sales went up 2% in the quarter.