Guangzhou, China — German machinery maker KraussMaffei Group GmbH is building a new plant in China that will double its capacity there, as the company expects to see China play a larger role both as a source of R&D and as a machinery export base.
The Munich-based company disclosed at a media event May 20, ahead of the Chinaplas show, that it started construction on the new plant in the city of Jiaxing. KM said it is part of increased capital investment under its parent company, China National Chemical Corp., or ChemChina.
“We have a strong focus on China, not just because we're part of the ChemChina family but because we see a lot of growth potential in the market,” said Matthias Sieverding, KM's president of extrusion technology.
“It is our clearly stated strategy that we'll start exporting more of these products out of China to the markets that we serve worldwide,” he added.
The new Jiaxing plant is KM's second recent expansion in China.
In January, KM said it had turned a former ChemChina production site in Sanming into a factory to make a new line of standardized all-electric injection molding machines, dubbed PX Agile, that are targeted initially at cost-conscious Chinese customers.
Sieverding said the Jiaxing plant, located about 60 miles southwest of Shanghai, will produce the full range of KM equipment, including injection molding machines, extruders, robots and polyurethane equipment.
“It's absolutely one of the key elements of our growth strategy here in China,” Sieverding said, adding that KM has outgrown its current China factory, in Haiyan, near Shanghai.
The project is also a continuation of KM's expansion into mid-range price and technology offerings that the company has not previously offered.
ChemChina acquired KraussMaffei in 2016, and successfully listed KM on the Shanghai Stock Exchange in December. At the time, KM executives said the stock listing would provide a significant new source of capital.