CHINA: Atlas Copco invests SEK 150m in new Wuxi plant15.11.2011, 18:13
The Swedish industrial group Atlas Copco has in November begun the construction of a stand-alone compressor plant in Wuxi, Jiangsu province in East China.
The investment of about SEK 150m includes the construction of a new compressor assembly factory, a test lab and a centre for research and development. The new facility will have 100 staff in the first phase.
The new factory and the upgrade of existing facilities will allow for increased production of portable compressors, industrial and oil-free air compressors as well as compressor elements.
"This investment will enable us to even better meet the needs of our local customers and thereby support the Group's profitable growth in the Asian market," says Stephan Kuhn, Business Area President of Atlas Copco Compressor Technique, to news2biz.
"We will also be able to focus our innovative efforts on local development of energy-efficient products that meet upcoming more stringent efficiency requirements in China," he explains.
"Most of the compressors we sell in China are produced by our various Chinese factories. The same applies for our Wuxi factory. We have an increasing number of compressor models designed in China for China," he adds.
According to Mr Kuhn, despite the slowing growth levels in China, for bigger compressors the demand is keeping at previous levels while there is some effect as for smaller compressors.
Photo: Atlas Copco
Located about 10 kilometres from Atlas Copco's current Wuxi plant, the new factory occupies a land surface of no less than 45,000 sq.m.
The new production facility is planned to be operational in July 2012, serving both the construction and compressor technique business areas.
Atlas Copco currently has more than 5,000 employees in China, working at 13 manufacturing facilities and more than 100 offices around the country.
Atlas Copco has world-leading positions in compressors, expanders and air treatment systems, construction and mining equipment, power tools and assembly systems. Atlas Copco was founded in 1873, is based in Stockholm, Sweden, and has a global reach spanning more than 170 countries. In 2010, Atlas Copco had 33,000 employees and revenues of SEK 70bn.