Company News, 2014-07-02, 02:06 PM
Expansion in growth market China: ThyssenKrupp opens new factory in Shanghai
Opening of a new factory for chassis technology More than 400 million euros invested in new production sites in China in the past three years Further growth in components business in China planned
ThyssenKrupp is expanding in the growth market China. Ahead of the German Chancellor’s visit to China ThyssenKrupp CEO Dr. Heinrich Hiesinger today opened a new auto components factory in Shanghai. The new facility will produce steering and damper systems for the Chinese market. ThyssenKrupp has invested around 100 million euros in the new production site.
“China is one of the most important growth markets for ThyssenKrupp,” says Dr. Heinrich Hiesinger, who will be part of a German business delegation accompanying the Chancellor during her visit to China in the coming days. “Our capital goods and technology businesses offer answers to central global issues such as demographic change, urbanization and climate protection, which are particularly relevant in Asia and China,” he adds. ThyssenKrupp’s components business and elevator division have expanded strongly here in recent years. To continue on this growth path, ThyssenKrupp has also set up a new regional organizational structure in Beijing. Hiesinger: “We will continue to expand in China and will be opening the next factory this fall.”
Five of ThyssenKrupp’s business areas have operations in China today. The technology company achieved sales of 2.2 billion euros in China in the last fiscal year and currently employees around 15,000 people in the country.
The Components Technology business area on its own, which manufactures components for the auto, construction and wind energy sectors, currently operates ten production sites in China. They employ more than 4,000 people and in fiscal 2012/2013 generated sales of around 800 million euros, with automotive components accounting for around two thirds of this.
“We are keeping pace with the rapid growth of the auto market in China. In the past two years we have invested over 300 million euros in new components plants alone. Since 2013 we have launched production programs for new products at four sites. We aim to continue growing at this pace in the Asian market,” said Dr. Karsten Kroos, CEO of the Components Technology business area at ThyssenKrupp. A further factory producing cylinder head modules will begin operation in Changzhou before the end of the year.
ThyssenKrupp currently produces high-performance components for the Asian auto market at seven sites in China. The product range extends from crankshafts and camshafts to chassis components such as steering systems, dampers, springs and stabilizers. Components and assemblies for construction equipment and wind turbines are manufactured at three further sites in China.
The newly opened plant for steering and damper technology occupies a 35,000 square meter site in Pudong district in eastern Shanghai. It has several production lines manufacturing steering components such as steering shafts as well as complete electronic steering systems. Another production line for passive damper systems is currently being ramped up and will go into full production in the coming months. A further line for forged steering components will be added next fiscal year.
“We are moving into new markets like China with an increased level of in-house manufacturing. At our new site in Shanghai we will cover the complete value chain from forging to machining to complex assembly of electric steering systems. In addition we have set up our own development center here where we will develop our chassis products further and tailor them to the requirements of our Asian auto customers,” adds Kroos. Around 750,000 electric steering systems and 1.8 million damper systems per year are to be made at the new site, which will create over 300 new jobs in Shanghai.
In the past three years ThyssenKrupp has invested a total of one billion euros in the expansion of its global auto components business, focusing besides China on the markets in the USA, Mexico and Brazil.