Johnson Controls expands start-stop battery production in China to meet surging market demand
Changxing plant doubles its AGM battery capacity
SHANGHAI—Oct. 31, 2016 — Johnson Controls, the global leader in automotive battery manufacturer, is expanding its production capacity of Absorbent Glass Mat (AGM) batteries for start-stop vehicles in China to support the rising market demand.
Johnson Controls recently launched new production lines for AGM batteries in its Changxing Plant, Zhejiang province facility. The plant’s current AGM battery capacity has been increased to over 3 million units a year, more than double the prior year capacity. The total annual capacity of the plant now reaches approximately 10 million batteries, making it Johnson Controls’ largest battery manufacturing facility in China. The AGM capacity expansion project is ongoing and expected to be completed in 2017. Over the next five years, Johnson Controls is investing $780 million to grow global production capacity for start-stop vehicle batteries.
“We see growing market demand for AGM batteries, as start-stop vehicles are getting more and more popular in China and around the world.” said Kenneth Yeng, vice president and general manager, Johnson Controls Power Solutions China. “By 2020, around 50 percent, or 15 million new vehicles annually will be equipped with start-stop functionality. We are adding the capacity to meet the market momentum while following our global manufacturing standards to ensure outstanding performance and quality.”
The company predicts that between 2016 and 2020, the global market will surge from 25 million to 65 million vehicles in North America, Europe and China. In China alone, start-stop penetration for new vehicle production is expected to be around 50 percent, driven by increasing fuel economy and greenhouse gas emission targets set by the government. Start-stop technology provides up to 5 percent fuel savings every time drivers fill up their gas tank. It is easy for automakers to apply to traditional internal combustion engines, and easy to use — no change in driving habits required. As the ideal energy storage solution for start-stop systems, Johnson Controls AGM batteries are engineered for superior starting power and improved performance, to achieve the fuel economy
benefits, support more complicated power needs as well as to ensure a smooth driving experience of start-stop vehicles.
About Johnson Controls
Johnson Controls is a global diversified technology and multi industrial leader serving a wide range of customers in more than 150 countries. Our 117,000 employees create intelligent buildings, efficient energy solutions, integrated infrastructure and next generation transportation systems that work seamlessly together to deliver on the promise of smart cities and communities. Our commitment to sustainability dates back to our roots in 1885, with the invention of the first electric room thermostat. We are committed to helping our customers win and creating greater value for all of our stakeholders through strategic focus on our buildings and energy growth platforms. For additional information, please visit http://www.johnsoncontrols.com or follow us @johnsoncontrols on Twitter. About
Johnson Controls Power Solutions
Johnson Controls Power Solutions is the world's largest manufacturer of automotive batteries, supplying approximately 146 million every year to automakers and aftermarket retailers. Our full range of lead-acid and lithium-ion battery technology powers nearly every type of vehicle for our customers- including traditional, start-stop, micro-hybrid, hybrid and electric. Johnson Controls' recycling system has helped make automotive batteries the most recycled consumer product in the world. Globally, 15,000 employees develop, manufacture, distribute and recycle batteries at more than 50 locations. For more information, please visit http://www.JohnsonControls.com/PowerSolutions or follow @JCI_BatteryBeat on Twitter.
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