German industrial conglomerate Freudenberg Group plans to invest
250 million yuan (US$33 million) in China in coming months to
expand production and its distribution network as makers of
industrial goods buy more of its products.
The bulk of the funds will be used to finance construction of a
factory in eastern Shandong Province and expansion of existing
plants, which will help it meet its goal of doubling its local
employment and sales volume in China from last year's level by
2010.
"Sales volume has doubled in China within the past five years,
which shows the significance of China to the group's development,
but also poses challenges like our demand for talented people to
help us continue to grow here," said Hanno Wentzler, president of
Freudenberg's chemical division.
Foundation for its rapid growth came after the company, the
world's leading seal and vibration control equipment supplier, has
poured 1.2 billion yuan to expand production and distribution
network since 2000. It expects its China sales this year to grow at
about 25 percent from last year's 500 million euros (US$745
million), which was about 10 percent of its global revenue.
The new plant, in Yantai, will make air springs, which are
widely used in vehicles, mining machines and medical devices. The
plant will be completed next year and will employ 200
employees.
Expansion will take also place at its existing plants, including
a facility in Suzhou of eastern Jiangsu Province. The company now
runs 14 production bases in China and employs 3,600 people. It
operates with its Japanese partner NOK another seven plants making
seals and vibration controls, employing an additional 5,200
workers.
(Shanghai Daily November 29, 2007)
