11. June 2015

Schlemmer Group continues to expand in China

Plant expansion: production in Zhongshan has almost tripled

Ningbo Schlemmer Automotive Parts Ltd. opened its new expanded production areas in Zhongshan in southern China on 16 April, as part of an opening celebration. Chinese administration officials also took part in the celebrations together with Schlemmer’s CEO, Josef Minster, CFO Christian von der Linde and the local Managing Director, Xianxiong Hu. With an area of about 12,500 square metres, the plant in southern China now produces cable protection systems, conveying systems and other components – primarily for the automotive industry based in the region (cars, motorcycles, commercial vehicles and special vehicles). To a smaller extent, Chinese industry customers from the fields of engineering, shipping and rail technology are also supplied with Schlemmer products.

CEO Josef Minster gave details on the latest plant expansion in the global Schlemmer family: “At the moment, Schlemmer is growing by 15 percent per year with its seven plants in Changchun, Mianyang, Ningbo, Suzhou, Wuhan, Yantai and Zhongshan and is represented from the south-east to the north-east in close proximity to customers. In Zhongshan, previous production was already running at 90 percent capacity. New major projects are now giving us the opportunity to expand further in the Chinese market.”

Schlemmer has been producing in Zhongshan since 2006. From its starting point of 76 employees, the workforce has since grown to almost 200 Chinese employees. The plant expansion has almost tripled the production area from 5,000 to 12,500 square metres. The new production facilities will enable up to 5 million parts to be manufactured per year. Only about 60 percent of the manufactured components are standard products; the rest are produced individually in accordance with the particular requirements for locally based customers. With this, Schlemmer is also systematically pursuing its strategy in China of positioning itself to an increasing extent as a supplier of components and systems for the automotive industry.

Josef Minster is convinced that the latest investment will also make a considerable contribution to the further growth of the Schlemmer Group. “In 2014, Schlemmer produced the best business results in the history of the company for the second time running. We are also well on track in the first quarter of 2015. China has now become the largest market for vehicles worldwide and as a result it is naturally a key growth market for us.”