Valeo SA opened two new manufacturing facilities in China earlier this year to produce torque converters and front end modules.

In March, the company started making torque converters in a new plant in Nanjing. The first batch of the converters will be delivered to Shanghai General Motors Corp., says Christian Marsais, Valeo's group vice president for China.

In April, Valeo began assembling the front end modules for the Nissan Qashqai SUV in a new plant -- Guangzhou Valeo Engine Cooling Co. The plant is about one kilometer away from Dongfeng Nissan Passenger Vehicle Co.'s Huadu plant.

Valeo makes products ranging from lighting to climate control systems in its 14 facilities in China.

Marsais says: "We mainly produce for the Chinese market and only export less than 10 percent of our products."

Valeo has two r&d centers in China: one in Wuhan for lighting systems and the other one in Shanghai for engine cooling and climate control systems.

Valeo aims to source 70 percent from low-cost countries by 2010 for its global operations. A large part will be purchased in Eastern Europe and Asia, says Marsais.

With a total global OEM automotive parts sales of $13.3 billion (91 billion yuan) in 2007, Valeo ranked 12th among Automotive News' 2007 top 100 global OEM parts suppliers.

Of the total sales last year, Asia contributed 13 percent, says Marsais. China is Valeo's largest market in Asia, he adds.