Cem Peksaglam (CEO Wacker Neuson SE) and Zhou Diming (Director of the Administration Committee of Pinghu Economic-Technological Development Zone) signing a contract for a new factory in Pinghu, China.
The Wacker Neuson Group intends to further extend its production capabilities in Asia and strengthen its local presence in China with the construction of a new production plant in Pinghu, about 30 km from Shanghai. Cem Peksaglam, CEO of Wacker Neuson SE, recently signed the corresponding contracts on site.
Initially, compact excavators will be produced for the local market, and further products will follow at a later stage. It is planned that the first compact excavator should roll off the production line at the beginning of 2018.
“We have finally decided for the Pinghu location in Zhejiang Province, which best suits our requirements,” says Peksaglam. “We are continuing our strategy of internationalisation with this step.”
The strategically favourable location between Shanghai and Hangzhou, coupled with good infrastructure, are said to be key advantages of the new project site. Manufacturing facilities, research and development, quality management, logistics, service and training will be located on about 135 000 m² of ground with approximately 30 000 m² of building space.
Construction is planned to start at the end of 2016, with completion expected by 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 equipment. The German OEM says an increasing need for improved infrastructure, as well as the extension and modernisation of road and rail networks in the country, offer attractive growth opportunities.
A stronger presence in the country, including R&D and production will lay the groundwork to be part of the future growth and improvements in the Asia-Pacific region, according to Peksaglam.