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BUCHAREST (Romania), May 18 (SeeNews) - German automotive group SHW plans to begin production at its newly established new pumps and engine components manufacturing unit in Romania in the second half of 2017, the company told SeeNews on Thursday.
"We will start with the transfer of selected existing pump projects with reduced technological complexity from Bad Schussenried to Sibiu. The start of production is planned for the second half of 2017. At a later stage we are planning to allocate some specific new projects," head of investor relations and corporate communications Michael Schickling said in response to a SeeNews enquiry.
Bad Schussenried is a town in Baden-Württemberg province in Germany where SHW makes pumps and engine components for passenger cars and trucks as well as off-highway applications such as fuel pumps for agricultural and construction vehicles, stationary engines and wind power stations.
Michael Schickling also said that at the moment it is too early to talk about concrete capital expenditure and headcount numbers at the factory in Romania.
The company said earlier this month it plans a higher capital expenditure in 2017 and 2018 to finance the establishment of the new production site in Romania and the development of new markets in China and North America. Capital expenditure in fiscal year 2017 is projected in a range of 29 million euro - 32 million euro ($31.4 million - 34.8 million) and 27 million euro to 30 million euro in fiscal year 2018 in connection to those plans.
The group established a company in Romania under the name SHW Pumps & Engine Components at the beginning of 2017.
SHW Group has four production sites in Germany, two sites in Brazil and China and also a sales and development centre in Toronto, Canada. Besides, SHW Automotive GmbH also holds a 51% interest in the joint venture SHW Longji Brake Discs in LongKou, China.
With just over 1,250 employees, the company generated group sales of 406 million euro in fiscal year 2016.