Yapp to build new fuel tank plant

A Chinese plastic fuel tank maker based in Jiangsu province will open a new plant in December in Chongqing to supply Ford's and Suzuki's joint ventures in the region.

At the new plant, Yapp Automotive Parts Co. is scheduled to make 250,000 plastic fuel tanks for sedans every year after the first phase of the project is completed. Capacity will be further expanded in the future, the company says.

Yapp says its new Chongqing plant will have an area of 5,680 square meters. Investment for the first-phase project is 65 million yuan ($8.6 million).

The tanks will mainly be supplied to Changan Ford Mazda Automobile Co. and Changan Suzuki Automobile Co. in Chongqing. A source from the local government says annual sales will be about 180 million yuan ($24 million).

Yapp says the company supplies Changan Ford Mazda from its plant in Shanghai now, but the delivery cost is too high. Shanghai is about 1,500 kilometers from Chongqing.

Yapp says it supplies all models of Changan Ford Mazda. Yapp is discussing with Volvo about supplying the S80, which a source says  could be assembled by Changan Ford Mazda starting in 2009.

The Chongqing plant will also supply the Suzuki SX-4 hatchback of Changan Suzuki.

Yapp is the leading plastic fuel tank maker in China. It supplies the Chinese joint ventures of many global automakers, such as Volkswagen AG, General Motors, Ford Motor Co., PSA/Peugeot-Citroen SA, Hyundai Motor Co. and Kia Motors Corp.

Yapp also supplies Ford Lio Ho Motor Co. in Taiwan and Ford plants in South Africa and India.

Yapp has 10 subsidiaries in China, including a joint venture in Wuhan. The company produces 2 million plastic fuel tanks annually.

Between 2000 and 2004, it signed agreements with France's Inergy Automotive Systems and Germany's Kautex Textron to get technical support to develop its products.