Harman opens new auto systems plant in Suzhou

Shanghai, November 27 (Gasgoo.com) Harman International inaugurated a new manufacturing facility in East China's Suzhou city on November to produce automotive audio and infotainment systems, said local media.

Harman International is a global developer and manufacturer of automotive audio systems. The U.S. company will expand its growth in China, the world's second largest auto market, after a drop in demand from Harman's key customers such as GM in the home market. Harman has committed to invest $75 million in construction and expansion of its Suzhou facility, and $30 million of them has been spent for the first-phase project.

Located in the Suzhou Industrial Park, about 75 miles northwest of Shanghai, the new Harman plant now employs about 320 people in producing a variety of speakers, amplifiers and electronic components under the Harman Kardon, Infinity, and JBL brands. The new facility will soon start developing deluxe audio systems for BMW-5 models at the Chinese market. The new plant also serves Shanghai GM, Korean Hyundai and Kia.

"This manufacturing and engineering expansion is a key element of our strategy for growth, while leveraging the attractive infrastructure, talented workforce and new business opportunities in the Asian markets," said Dinesh C. Paliwal, Harman's chairman and CEO, adding that Harman intends to build upon its track record for innovation with a value chain that is optimized for today's markets.

Harman International employs 800 to 1,000 people overall in China based on seasonal demand, and is growing rapidly to boost annual China sales to $1 billion within five years from current $200 million. The company is also seeking cooperation with the local automobile manufacturers in China and aims to triple its China workforce to about 3,000 by 2013.