Invested 50 Million in Voith Changshu New Plant

On December 11, 2014, Voith Group held a grand opening ceremony for its new factory in Changshu, Jiangsu. The factory, with a total investment of approximately RMB 50 million, will be mainly engaged in the assembly of automobile tires and wheels. Upon its operation, it will further help Voith's business expansion in China, the world's most dynamic automotive market.

Opening ceremony of new factory in Voith Changshu
Opening ceremony of new factory in Voith Changshu

As a subsidiary of Voith Industrial Services (China) Co., Ltd., the plant is expected to have 1.1 million tires and wheels assembled each year. The new plant was founded thanks to a 10-year service contract signed by a global leading automotive manufacturer and Voith Industrial Services.

Mr. Guang Wei, Managing Director of Voith Industrial Services (China) Co., Ltd. stated: “Voit is committed to providing a full range of industrial technical service solutions for vehicle manufacturers and auto parts suppliers. Our services are in-depth. Into the customer's various production processes, and follow their pace of global expansion. With the establishment of Changshu's new factory, Voith has taken a solid step in the development of the Chinese automotive market."

Voith Industrial Services is one of the four divisions of the Voith Group. The industrial services provided include maintenance of production equipment, management of plant facilities, technical cleaning, and manufacturing support.

The Changshu new plant mainly provides tire and hub assembly services for luxury cars. According to statistics from the China Association of Automobile Manufacturers, in the first half of this year, China’s automobile production increased by 9.6% compared to the same period of last year to 11.78 million vehicles. Vehicle sales volume increased 8.4% year-on-year to 11.68 million vehicles, of which, luxury car sales accounted for 9.4%, higher than Japan and South Korea.

Mr. Guang Wei said: “As the competition in the Chinese auto market intensifies, more and more manufacturers choose service outsourcing to reduce their total operating costs and concentrate more on improving their core competitiveness. This trend is driven by 2013/ In fiscal year 2014 (as of September 2014), Voith Industrial Services' annual sales in China reached RMB 240 million, an increase of over 20% compared to the same period of last year. We expect the annual growth rate in the coming years to be More than 25%."

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