Delphi has been in bankruptcy protection in the US for almost two years and they've been closing and selling off plants trying to get profitable. Overseas, a lot of Delphi's operations have been going strong including their diesel fuel systems business. The company has also been moving some of their operations to lower-cost countries like those in Eastern Europe and Asia.

Delphi just announced plans to open a new diesel systems plant in Iasi, Romania. The first phase is expected to start operations before the end of 2007 with employment at the plant eventually reaching over 1,000. The plant will produce engine management systems and investment there could ultimately exceed €100 million.

[Source: Delphi] Delphi Plans Opening New Diesel Plant In Romania

Iasi facility to support growing customer base and incremental Delphi business in Central and Eastern Europe

Release date: July 23, 2007
IASI, ROMANIA --

In a move to service its growing customer base, Delphi Corporation (PINKSHEETS: DPHIQ), one of the world's largest automotive suppliers, has officially announced it is planning to open a new diesel engine management system (EMS) components plant. The facility, to be operated by Delphi Powertrain Systems division, is scheduled to receive equipment in late 2007. The site is in Iasi, in the north-east of Romania. The initial location is a pre-existing industrial site which will begin the first phase of manufacturing operations before year-end.

Delphi has well-developed expansion plans that call for several additional phases of new investment to launch products specified in already awarded new business contracts. Each of these future multi-million dollar phases of investment are for new building, machinery and equipment and will support attainment of long-range planned capacity in Iasi. Subject to Delphi's board of directors supporting future phases of investment, Delphi's total presence in Iasi, could reach over 1,000 workers and could accumulate to exceed 100 million euro investment.

"We have recently won a large number of new programmes and new customers, especially for diesel engine management systems that are Euro V compatible and we need to support our customers who are rapidly expanding in Central and Eastern Europe. We require additional plant capacity to support our continued growth" said Jose Avila, general manager for Delphi Diesel Systems. "Delphi is a key player in the global diesel market and this new site will strengthen our position by providing an efficient new manufacturing base nearer to our customers."

With this planned site, Delphi will strengthen its extensive global diesel manufacturing footprint. The group operates 13 sites dedicated to the diesel engine management system activity globally and has a presence in Brazil, Korea, India, Turkey, Mexico, France, Spain and the United Kingdom and now intends to add Romania to the list of global locations. As a dedicated diesel site, the Iasi plant would produce high-precision diesel fuel injection components, mainly pumps and injectors for common rail systems and will serve various customers around the world.

Recruitment to fill jobs at the initial facility has already started. According to Michel Stanciu, director of manufacturing strategy & engineering for Delphi Diesel Systems, workers at the plant will receive important training. "Iasi has a deep pool of well-qualified employees from which we will select," said Stanciu. "To augment those talents, each new employee will go through an extensive training programme." Stanciu, a native Romanian, was integral in bringing the plant to Romania and expects mutual benefits to be realized by the company and the country through the localization of the plant. "We look forward to a continued strong partnership with government officials, economic develop agencies and local educational institutions to finalize our long-range investment and capacity expansion plans," said Stanciu.

Precision Required from Diesel Plants

The manufacturing of diesel fuel injection systems requires an extremely skilled workforce. The common rail system working at a pressure up to 1800 bar requires a high-precision machining down to a few microns and the assembly operation needs to be done in a very strictly controlled clean room.

Delphi's Multec Common Rail System

The Delphi Multec Common Rail Diesel Fuel Injection System is widely used throughout the industry. It is a high-value, cost-competitive servo-hydraulic system that is not only high performance but simple and robust. In addition, Delphi's Multec Common Rail injection is easily packaged, and takes up less space than competing systems. Many of the world's top automakers have chosen this Delphi system over all others. Customers include familiar names such as : Ford PAG, Hyundai, Kia, PSA Peugeot Citroën, Renault-Nissan, Ssangyong, Suzuki.

Strong expertise

Delphi engineers have extraordinary expertise in air, fuel and exhaust management systems, because they work with all these technologies in the Delphi portfolio. Delphi engineers can easily orchestrate them to work in optimum harmony. This flexible, balanced expertise allows them to design the best fuel injection system solutions to meet car markers specialized needs.

Delphi Powertrain Systems

Delphi's powertrain technologies provide robust solutions to complex challenges, helping its customers develop vehicles that offer outstanding performance, refinement and emissions. They include multi point injection and direct injection gasoline systems; common rail, rotary pump diesel systems in a range of capacities and, for heavy duty diesel applications, Electronic Unit Injectors and Electronic Unit Pumps. All are complemented by innovative fuel handling, evaporative emissions, engine and transmission electronic controls, valve train, and aftertreatment solutions.

For more information about Delphi Corporation (OTC: DPHIQ) and its subsidiaries, visit Delphi's media room at www.delphi.com/media.

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