Volkswagen and Siemens establish new production facility

Volkswagen and Siemens have agreed to establish a 270 million Euro facility in Stollberg, Saxony, which will develop and manufacture unit injectors for use in TDI diesel engines.

Volkswagen and Siemens VDO Automotive have agreed to establish Volkswagen Mechatronic, headquartered in Stollberg, Saxony, with the objective of developing and manufacturing unit injectors for use in TDI diesel engines.

Both companies will have a 50 percent equity stake in the new company.

Construction of the 270 million Euro plant, which will have a 31,000 square metre assembly hall, is scheduled to begin in May 2003 with production starting in the fourth quarter of 2004. By mid-2007, up to 690 employees are expected to work at the Volkswagen Mechatronic facility.

Volkswagen will assume responsibility for building the facility, whilst Siemens VDO Automotive AG will take on responsibility for product and process development. Volkswagen Mechatronic will be responsible for the implementation of the overall project and will make all necessary investments in the plant, which will be able to produce 4 million injectors at full volume.

According to Alstom, the parts to be produced in Stollberg will use piezo technology in high-pressure unit injectors. The new piezo unit injector system is characterised by highest possible injection pressures and improved efficiency and precise, flexibly controlled injection. They are said to lower fuel consumption and produce exhaust emissions below the EU limits, which will come into force in 2005.

The injectors manufactured in Stollberg will be supplied to the Volkswagen Group. The injectors are to be used in diesel engines throughout the Volkswagen Group.

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