Wacker Neuson has plans to open a new factory facility in China.
The website World Highways is reporting that Wacker Neuson has plans to open a new factory facility in China. The plant will be located in Pinghu, around 30km from Shanghai. It will be used initially to produce compact excavators for the local Chinese market. However the plans call for additional products to be manufactured as the operation gears up. It is expected that the first Chinese-made compact excavator will be built in early 2018.
The move is important as it will allow Wacker Neuson to boost its production capabilities in Asia. The new plant will strengthen the firm's presence in China. The contracts were signed recently by Cem Peksaglam, the chief executive officer of Wacker Neuson.
“We have finally decided for the Pinghu location in Zhejiang Province, which best fulfills our requirements and the support of the local authorities is outstanding,” said Peksaglam. “We are continuing our strategy of internationalization with this step. In the largest construction machine market in the world we underline our commitment towards our Chinese customers and trading partners,” he added.
The site is located between the cities of Shanghai and Hangzhou and benefits from a good local infrastructure. Manufacturing facilities, research and development, quality management, logistics, service and training will be located on approximately 135,000m² of ground with approximately 30,000m² of building space. Construction is planned to start in the fall of 2016, with completion expected at the end of 2017. Initially the Chinese and later the Asian markets will be served with products tailored to the local requirements.
The Wacker Neuson Group has sold construction equipment in China for over 20 years. The product portfolio for the Chinese market was extended in 2015 to include compact Wacker Neuson Group. The firm says it intends to develop a stronger presence in the country, with research and development and manufacturing paving the way for future growth and improvements in the Asia-Pacific region.
Source: World Highways