US lead battery maker Johnson Controls said Wednesday it plans to build a $200 million automotive battery plant in Tianjin, China, that will manufacture lead-acid starter batteries and batteries for stop-start vehicles.
Construction of the plant will begin "between 2012 and the first half of 2013" with initial production expected by late 2014, Johnson Controls said. The plant is expected to produce more than 6 million batteries annually at full capacity, it said.
A start-stop automotive system is designed to automatically shut down and restart a vehicle's engine to cut the amount of time spent idling, thereby cutting fuel consumption and emissions.
A final investment decision on the project is still pending, the Milwaukee, Wisconsin-based company said.
Johnson Controls said it wants to increase its annual battery-making capacity in China to 30 million by 2017.
The company said its other China-based assets include a facility in Changxing that recently opened, a Chongqing plant that will open later in 2012 and an automotive battery plant in Shanghai. The last of these was was part of a 2005 acquisition, it added.
"We are forecasting 25 million in annual new car sales in China by 2015," said Alex Molinaroli, president, Johnson Controls Power Solutions. "This plant is a further indication of the strategic importance of this market for Johnson Controls."
