BorgWarner Strengthens its Position as a Leading Supplier of Fuel-Efficient Powertrain Technologies with New Production Plant and Engineering Center in China

Auburn Hills, Michigan, December 17, 2012 – BorgWarner officially opened another production plant at its campus in Ningbo, China, on November 28, 2012. Propelled by the rapidly growing Chinese automotive market, BorgWarner is expanding its capacity to meet increasing demand for fuel-efficient systems and technologies. The all-new high-tech manufacturing facility will produce and test Morse TEC variable cam timing (VCT) technologies and engine timing systems to support the production and launch of over 50 programs with more than 20 different customers. The opening ceremony also celebrated the inauguration of BorgWarner’s world-class Ningbo Engineering Center which provides research and development, applications engineering and management support.

“With our new plant and engineering center in Ningbo, we are strengthening our excellent position as a leading supplier of advanced powertrain solutions in the rapidly growing Asian market,” said Timothy M. Manganello, Chairman and Chief Executive Officer, BorgWarner. “Our latest manufacturing expansion increases our existing product lines, enabling us to produce high-tech products for our customers locally, and our newest engineering center expands BorgWarner’s global network of technical centers, enhancing our ability to introduce new technologies quickly. For nearly 20 years, BorgWarner has, delivered advanced technologies to improve fuel economy, reduce emissions and enhance vehicle performance in China. We look forward to continuing our growth in China in the future.”

The newest state-of-the-art production plant at BorgWarner’s Ningbo campus comprises 177,000 square feet (16,500 square meters) of manufacturing space. The facility features assembly lines, test stands and component level manufacturing to produce Morse TEC silent chains, roller chains, VCT technologies and engine timing systems for major Chinese joint ventures and domestic vehicle manufacturers. With a building area of 107,000 square feet (10,000 square meters), the Ningbo Engineering Center increases BorgWarner’s capabilities to develop new technologies locally and validate products quickly to meet the unique specifications of the Chinese market. The engineering center includes a prototype shop as well as two turbocharger and engine test stands. The building has been designed to allow for further growth with capacity for additional test equipment. Since 1993, BorgWarner has established a technical center in Shanghai, launched its largest wholly-owned foreign entity campus in Ningbo and formed three joint ventures across China.

The Ningbo campus opened in 2006 to produce advanced turbocharging technologies and emissions products such as exhaust gas recirculation (EGR) systems and secondary air pumps. With the extension of the campus in 2008, BorgWarner enlarged its local production of fans and fan drives with a manufacturing plant that uses state-of-the-art geothermal technology to heat and cool the building, reducing energy costs by 30% - 60% without emitting carbon dioxide.

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