Above: the signing of the contract in Pinghu, China: from left to right: Mr. Cem Peksaglam (CEO Wacker Neuson SE), Mr. Zhou Diming (Director of the Administration Committee of Pinghu Economic-Technological Development Zone)
Wacker Neuson Group is planning to open a new plant near Shanghai, China, strengthening its local presence in the country and extending its production capabilities in Asia. The new production plant will be built in Pinghu, about 30km from Shanghai. Initially compact excavators will be produced for the local market, with further products to follow. The first compact excavator is expected to roll off the production line at the beginning of 2018.
Cem Peksaglam, the chief executive officer of Wacker Neuson SE signed the corresponding contracts on-site last Friday. “We have finally decided for the Pinghu location in Zhejiang Province, which best fulfills our requirements and the support of the local authorities is outstanding,” said Peksaglam.
“We are continuing our strategy of internationalization with this step. In the largest construction machine market in the world we underline our commitment toward our Chinese customers and trading partners.”
The strategically favorable position between the cities of Shanghai and Hangzhou, as well as a good infrastructure, are key advantages of the new location. Manufacturing facilities, research and development, quality management, logistics, service and training will be located on approximately 135,000m² of ground with approximately 30,000m² of building space.
Construction is planned to start in the autumn of 2016, with completion slated by the end of 2017. Initially the Chinese and later the Asian markets will be served with products tailored to 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. An increasing need for improved infrastructure, the extension and modernization of the road and rail network while trending towards more efficient and environmentally friendly compact construction equipment offers attractive growth opportunities for the Wacker Neuson Group.
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.
June 23, 2016