GKN, Magneti Marelli Plan New Factories in China

Fiat SpA's Magneti Marelli parts unit has formed a joint venture to begin producing auto exhaust system components in Hefei in January.

The facility eventually will have annual capacity of 900,000 parts. The plant will supply Jianghuai Automobile Co. and other carmakers in China.

The Hefei factory will be a joint venture among Magneti Marelli (51%), JAC (37%) and investment group Hefei Lingdatang Collective Assets Management Co. (12%).

Separately, U.K.-based engineering firm GKN plc is building a $26 million plant in Yizheng in Jiangsu Province. GKN's powder metallurgy unit aims to begin sintered components for engines, transmissions and chassis there in the fourth quarter of 2013.

GKN Powder Metallurgy has two other factories in China, both in Jiangsu Province.