Shares of BorgWarner Inc. (BWA) increased 0.3% and closed at $62.42 on Aug 14, after the company revealed its intentions to invest $9.4 million to expand its Dixon, IL, plant over the next three years.
BorgWarner expects this expansion to support the optimal supply of environment-friendly technologies, including exhaust gas recirculation (EGR) coolers, tubes and thermostats. These technologies help reduce emissions and improve fuel efficiency of passenger cars and on- and off-road commercial diesel vehicles. In addition, BorgWarner expects the plant expansion to create 40 new jobs in manufacturing and product engineering, supplier quality, supply chain, and technical and quality support departments.
The Dixon plant spreads across 135,000 square feet and employees 210 workers. BorgWarner intends to expand the plant in order to meet the expected rise in demand in North America in the future. Notably, the plant started operating over 50 years ago. Over this period, BorgWarner has increased the manufacturing capacity of the plant to meet market demand. With this, the company attained the leading position in the EGR products market for both passenger and commercial diesel vehicles.
BorgWarner is a leading manufacturer of powertrain products for major automakers. The company’s products are capable of improving vehicle performance while meeting fuel-efficiency and emission standards. BorgWarner operates in 60 locations across 19 countries. Also, the company’s products are sold worldwide, primarily to original equipment manufacturers of passenger cars, SUVs, trucks and commercial transportation products.
BorgWarner currently carries a Zacks Rank #3 (Hold). Better-ranked stocks worth considering in the same industry are STRATTEC Security Corporation (STRT), China Automotive Systems Inc. (CAAS) and Visteon Corporation (VC). All the stocks sport a Zacks Rank #1 (Strong Buy).
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