UNITED States auto parts maker BorgWarner Inc, which is closing plants and cutting jobs in its home market, began construction of its China technology center in Shanghai yesterday.

The BorgWarner China Technology Center, with an initial investment of US$35 million, will be the largest of the firm's global technology centers, said Tim Manganello, its chief executive officer.

Construction of the 27,000-square-meter engineering facility will be completed by the end of next year and it will hire 200 engineers initially. The head count will double to 400 by 2012, the firm said.

'China's auto industry will continue to grow, probably at a slower pace than we have seen in the last few years,' said Manganello. 'In order to participate in the growth in China and provide technology to Chinese original equipment manufacturers, we still feel it's very critical and important to be located in China with the technology center.'

BorgWarner's investment in China is part of the supplier's plan to expand in emerging markets after the financial crunch triggered significant production cutbacks by auto makers it supplies to in the US and Europe. The Auburn Hills, Michigan-based firm just announced a cut of up to 1,250 jobs in the US, 250 more than previously planned, under a restructuring plan.

BorgWarner CTC will focus on research and development of engines and drivetrain products such as turbocharge and dual clutch transmission equipment, said Tom Tan, its president in China. There is still demand for the products which help improve fuel efficiency and waste emission.