Latch supplier Kiekert starts production in China by year-end

Shanghai, May 8 (Gasgoo.com) Kiekert AG, Germany supplier of the automotive latch system will put its first China-based plant into production by the end of this year, and the wholly-own plant located in Changsu city will represent one fourth of its global output, according to Dr. Karl Krause, CEO of Kiekert.

The Changshu plant, in the vicinity of Shanghai, will be used as an export hub by the leading lock-maker in the first stage, and as the scale grows it'll focus on China's domestic market. The latches to be exported next year will supply Chrysler and Ford vehicles in the North American and European markets, as the company announced.
 
Kiekert is the leader in latch manufacturing worldwide for passenger cars and light commercial vehicles. It controls around 17 percent of the global market for side door latches. Kiekert latches could be seen in all BMW and Mercedes models, and they're also used in lots of Ford, Chrysler, Volkswagen and General Motors cars. In 1975 Kiekert introduced patented electric actuated central locking systems in serial application for the very first time.
 
In China, Kieker keeps technological cooperation with local manufacturer Henan Xingguang Automotive Lock Co. The two sides set up a joint venture in 2005, with Kiekert holding a 25 percent stake in it.

The initial investment into the Changshu plant will total EUR 20 million by late 2009, and more capital will be funneled into the facility as the demand increases.

As for setting up the Changshu plant, it's the right country, right timing and right place, stated Dr. Krause. "The Asian market produces around 40 percent of the total vehicles around the world, in which Japan and China are the two largest. As Japan is already a well-established and mature market, it doesn't make sense for us to enter. China is the second largest and the growth of the market overtakes other emerging markets like India and Thailand. Also we want to achieve the economy of scale and operate the plant at its full capacity," he explained. 

To date, Kiekert has been operating production facilities in Germany, the Czech Republic, Mexico and China. It also has sales offices and affiliates in major automotive industry centers and growth markets worldwide. Kiekert group posted global revenues of more than EUR 500 million in 2007.