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Wacker Neuson to open new factory in China

Wacker Neuson to open new factory in China

Company extending production capabilities in Asia and local presence in Chinese market

THE Wacker Neuson Group are to further extend their production capabilities in Asia and strengthen their local presence in China with the construction of a new plant in Pinghu, some 30km from Shanghai. Initially, compact excavators will be produced for the local market but further products will follow.

The decision follows an extensive search for a suitable location. ‘We finally decided that the Pinghu location in Zhejiang Province best fulfils our requirements,’ said Cem Peksaglam, chief executive officer of Wacker Neuson SE, who added that the support of the local authorities had been ‘outstanding’.

‘We are continuing our strategy of internationalization with this step. In the largest construction machinery market in the world, we are underlining our commitment towards our Chinese customers and trading partners.’

A strategically favourable position between the cities of Shanghai and Hangzhou, as well as good infrastructure, are seen as key advantages of the new location. Manufacturing facilities, R&D, quality management, logistics, service and training will all be located on approximately 135,000 square metres of ground, with approximately 30,000 square metres of building space.

Construction is planned to start in autumn 2016 with completion scheduled for the end of 2017.

The first compact excavator is expected to roll off the production line at the beginning of 2018.

The Wacker Neuson Group have sold construction equipment in China for more than 20 years and their product portfolio for the Chinese market was extended in 2015 to include compact equipment.

The company says an increasing need for improved infrastructure plus the extension and modernization of the road and rail network, and a trend towards more efficient and environmentally friendly compact construction equipment, offers attractive growth opportunities.

Moreover, a stronger presence in the country, including R&D and production, will also lay the groundwork for the Wacker Neuson Group to be part of the future growth and improvements in the Asia-Pacific region.

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