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Delphi, the world's largest automotive components supplier, announced on Friday it will open two new technical centres in China and South Korea to further facilitate its expansion in Asia Pacific.

The US-based company said its initial investment in the two new technical centres will be US$40 million.

Once the two projects are completed, Delphi will have six technical centres in Asia Pacific -- Japan, Singapore, India, South Korea and China.

"Our customers want increased local support in Asia-Pacific, and we're going to give it to them,'' said Donald Runkle, Delphi vice-chairman and chief technology officer.

"These new technical centers will provide our customers with stronger levels of technical support, provide us with a more robust value stream and optimize the return on our research and development expenditures,'' Runkle said.

The new centre in China will be located at Delphi's wholly owned entity in Shanghai, the nation's biggest economic powerhouse, the company said.

The centre will start operating with 500 employees in June 2005.

"Asia Pacific continues to generate profitable growth for Delphi and plays a critical role in Delphi's customer and market diversification strategies," said Choon T. Chon, president of Delphi's Asia Pacific Operations.

The company said its sales growth rate in Asia Pacific so far this year has exceeded that of last year.

Last year, sales grew by 20 per cent to US$1.1 billion in the region.

In China, Delphi has reported a growth rate of nearly 40 per cent in sales so far this year, up from 30 per cent last year.

Delphi operates 13 wholly owned manufacturing facilities and 17 joint ventures in Asia Pacific.

The company has 10 wholly owned and joint venture plants in China, the world's fastest-growing vehicle market.

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