Italian firm to make auto electronic systems in China

BEIJING -- Cobra Automotive Technologies S.p.A. plans to build its first Asia plant in China to produce electronic systems including antitheft and parking aid systems for cars.

Cobra has purchased an 18,000-square-meter parcel of land near the plant of Beijing Benz-DaimlerChrysler Automotive Co.

Construction of the plant and an r&d center will start on the land in October. After it becomes operational in 2010, the plant will have a combined capacity of 3 million antitheft and parking aid systems.

Cobra is now assembling antitheft systems in a factory building it has rented in Beijing. The product's core electric board is currently imported from Italy, but will be produced in China by 2010, says Fabrizio Finocchiaro, managing director of Cobra (Beijing) Automotive Technologies Co.

"We are in the process of building our supplier base here," says Finocchiaro. Cobra (Beijing) was founded in 2007 to oversee Cobra's futures operations in China. At present, Cobra has about 20 suppliers in China.

Total investment in the plant and the r&d center will reach 12 million euros ($18.8 million) by 2009, says Finocchiaro.

Once operational, the new plant will supply Cobra's clients in Japan including Cobra supplies Nissan Motor Co. and Toyota Motor Corp.

Currently, Cobra supplies its Japanese clients from its facilities in Europe.

It is also expected to supply China-based joint ventures of European automakers such as Volkswagen and Chinese automakers seeking to export to Europe, says Finocchiaro.

He expects Cobra's sales in China will reach 50 million euros ($78.5 million) by 2012.

Headquartered in Varese, Italy, Cobra achieved total revenue of 116.3 million euros ($182.6 million) in 2007, up 29.3 percent from 2006.