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BorgWarner starts building new manufacturing plant in Portugal

ABR Staff Writer Published 18 September 2013

US based auto-parts manufacturer BorgWarner has started the construction of a new manufacturing facility in Viana do Castelo, Portugal.

Located at the industrial zone of Lanheses in Viana do Castelo, the new facility includes 160,000sqft of manufacturing space along with room for future expansion.

The construction of new plant is part of company's plan to expand production of its diesel cold-start technologies as well as meet growing demand for the EGR technologies, which are currently produced at the Valenca plant.

The construction of new facility is scheduled for completion in 2014. The facility will allow the company to serve customers with environmentally friendly technologies such as exhaust gas recirculation (EGR) coolers, EGR tubes as well as glow plug control modules that help in the reduction of emissions.

BorgWarner BERU Systems and BorgWarner Emissions Systems president and general manager Brady Ericson said the investments in Portugal will enable the company to strengthen its position in EGR technologies in Europe and meet growing demand for both passenger cars and commercial diesel vehicles.

"The need for advanced diesel cold-start technologies is a further driver of our business, especially in Europe, where Euro 6 emissions regulations take effect in 2014," Ericson added.

BorgWarner anticipates the global EGR systems market to increase from 21.2 million units in 2013 to 33.3 million units by 2018.

The new plant is located about 31 miles from its currently rented site in Valenca. The company plans to gradually transfer current production to Viana do Castelo with completion by early 2015.