Tesma International will set up a plant in China this year, while other Canadian parts manufacturers are waiting in line to enter the rapidly growing parts market. Pat Cerullo, Tesma’s Vice President of Market Sales Development, said that the company’s first manufacturing facility in China will start supplying parts to Volkswagen AG by the end of this year. The vice president also pointed out that the opportunity to set up factories in China will be lost. It will be a lot more risky than doing business in China.
Tesma is not the first company to set up a plant in China. It is also in the company of Intier Automotive, a company owned by Magna, already has a manufacturing plant in China. China is expected to become the world’s second largest automobile manufacturing country in 2010. It will be able to produce 7 million cars a year. It will only produce 16 million units per year behind the United States. This data will be any hope of operating. The growing company cannot ignore it.
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