Company News, 2014-11-04, 11:21 AM
ThyssenKrupp continues to grow in China: New automotive supply plant opened in Changzhou
ThyssenKrupp CEO Dr. Heinrich Hiesinger has today opened a new plant for automotive components in Changzhou. At the new location for powertrain technology in the Jiangsu province cylinder-head covers for the Chinese automotive market are manufactured. ThyssenKrupp has invested around 40 million euros in the new plant. From now on, up to 200 people will produce about one million cylinder-head covers there per year.
"As a broad-based technology company the Chinese market plays an important role for us. Our strategy focuses especially on China's mobility sector. In recent years, we have strongly expanded in this industry with our elevator division and components business,” says Dr. Heinrich Hiesinger.
Five of ThyssenKrupp’s business areas have operations in China today. In the last three fiscal years, the Group has invested over 400 million euros in new production facilities. For the financial year 2013/14 ThyssenKrupp expects sales of 2.5 billion euros in China. This represents a growth of about 16 percent compared to the previous year. ThyssenKrupp operates currently more than twenty production sites in the country and employs about 16,800 employees in China.
ThyssenKrupp's investment focus in China in recent years was on the component business for the automotive industry. In the last 24 months alone, the large industrial company has started operation in five new plants. The investment for those new facilities amounts to around 340 million euros.
"Since 1995 we are represented as a supplier of chassis and powertrain components in the country. Over the last years, we have been keeping pace with the dynamic growth in the Chinese auto industry and intend to continue growing with our customers in China," said Dr. Karsten Kroos, CEO of the Business Area Components Technology at ThyssenKrupp.
The Components Technology Business Area, which manufactures components for the auto, construction and wind energy sectors, currently operates eleven production sites in China. They employ more than 4,000 people and in fiscal 2012/2013 generated sales of around 750 million euros, with automotive components accounting for around two thirds of this.
The product range extends from powertrain components like crankshafts, camshafts and cylinder-head covers to chassis components such as steering systems, shock absorbers, springs and stabilizers. Moreover, at three sites in China components for construction equipment and wind turbines are manufactured.
The new plant for cylinder-head covers with integrated camshafts in Changzhou is the fourth such plant being built or taken into operation around the world by ThyssenKrupp in the last 12 months. The company has already begun manufacturing cylinder-head covers in Dalian (China) and Ilsenburg (Germany) last year, while a further plant in Poços de Caldas (Brazil) is currently under construction and scheduled to start series production next year. Plans for a further plant in the NAFTA region are well advanced.
The strong demand and high growth potential particularly for cylinder-head covers are based on a new development in camshaft technology and a production process which has been perfected by ThyssenKrupp. In a special process, the camshafts and other components are integrated directly into the closed cylinder-head cover. As a result, ThyssenKrupp can now supply its customers with a complete valvetrain module instead of individual drive components as in the past. This delivers weight savings of up to 30 percent, lowers fuel consumption and reduces harmful emissions. Faster and more efficient engine assembly at the car plant is a further advantage.