Multimode eTransmission, GKNJapan – The plant, which will replace an older facility, will be equipped with GKN’s best-practice manufacturing technology to enable it to produce next-generation all-wheel drive systems and rear-drive modules. Groundbreaking will take place this month, with completion set for halfway through 2018.

“One-third of the world’s vehicles are designed and developed by Japanese OEMs, so it is essential that GKN has world-class capability in the region,” said Phil Swash, CEO of GKN Driveline. “This new state-of-the-art facility will allow us to meet increasing demand for advanced all-wheel drive and eDrive systems, while retaining all the benefits of an automotive manufacturing site in the Nagoya area.”

GKN already has a facility in Nagoya which supplies Mitsubishi with “significant volumes” of the Multimode eTransmission for its Outlander PHEV. The company says it opted to build its new plant in the same area due to the proximity of vehicle-makers, both existing customers and potential new ones.