Japan’s IHI to Hike Turbo Output 30%

Japanese heavy machinery builder IHI Corp. will invest 40 billion yen ($400 million) over three years to increase its capacity to make automotive turbochargers by 30%, The Nikkei reports.

The Tokyo-based company is targeting annual output of 8 million units by fiscal 2020. It also hopes to reduce its production costs 30% over the same period, in part by bringing more component production in-house and centralizing its purchasing activities.

IHI plans to spend an additional 20 billion yen over the next two fiscal years on turbocharger research and development. Much of the focus will be on standardizing parts.

The company currently controls about 20% of the global turbocharger market, according to The Nikkei. It notes the turbo market is expected to grow at an average 11% through 2020.