Dana (DAN) Commences 15th Facility Construction In China

Dana Incorporated (NYSE:DAN) has started constructing a new manufacturing and assembly facility in Chongqing, China. With a sprawling 7,500 square-meter (80,000 square-foot) size, the facility will produce advanced driveline products for the Chinese market.

This expansion is expected to cost around $23 million (CNY160 million) for Dana and will employ roughly 130 associates when it reaches its full production capacity in 2020.

The plant is scheduled to open in late 2018 to produce final drive units, featuring integrated technology named, Spicer SmartConnect. The technology is currently under pre-production testing stage. It can be used in SUVs, crossovers and passenger vehicles to improve their fuel efficiency.

The facility is located at Yufu Industrial Development Zone, where it will receive substantial financial incentives, site development and other support from the Chongqing Liangjiang New Area Administrative Committee.

The first in Chongqing, this plant will add up to 15 facilities in total for Dana in China. Setting up this facility would further enable Dana to take advantage of the regional skilled workforce as well as the established network of suppliers and efficient transportation channels. The company is also planning to launch new strategic product improvements in China.

Price Performance

Dana has outperformed the Zacks categorized Auto/Truck-Original Equipment industry in last three months. The company’s share price rose 13.7% compared to industry’s gain of 8.2% during the period.

Zacks Rank & Stocks to Consider

Dana currently sports a Zacks Rank #1 (Strong Buy).

Dana Incorporated Price and Consensus

Other companies in auto space include Allison Transmission Holdings, Inc. (NYSE:ALSN) , Ferrari N.V. (NYSE:RACE) and Lear Corp. (NYSE:LEA) . All three stocks flaunt a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Allison Transmission has an expected long-term growth rate of 11%.

Ferrari has an expected long-term growth rate of 14.1%.

Lear has an expected long-term growth rate of 7.1%.

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