Bosch Packaging Technology to build second plant in China
* Expansion of manufacturing in China
* Investment volume of 17 million euros (150 million Yuan)
* Bosch signs investment agreement for land use in Chengdu
* Production in Chengdu to begin in early 2012 in leased production hall
* New plant: Construction work to start in 2014. First expansion phase will be completed in 2015.
Stuttgart/Chengdu – To further expand its regional commitment in China Bosch Packaging Technology intends to build a second production facility in Chengdu, Pujiang county in Sichuan province. The investment volume amounts to 17 million euros (150 million Yuan). An agreement concerning the use of a site of 66,000 square meter has now been signed. “Ten years ago, we started up in China with 14 associates. Since then, our sales have continuously increased”, said Friedbert Klefenz, President of Bosch Packaging Technology. In China the company currently employs some 400 associates at its site Hangzhou. For the current year Bosch Packaging Technology expects to reach sales of around 85 million euros (750 million Yuan) in the Chinese market with products manufactured either locally or in predominantly European Bosch factories.
With its production facility in China, Bosch primarily serves the regional packaging machine market which is estimated to grow by an annual average of 15 percent over the coming years. Klefenz explained: “Considering the enormous growth of the Chinese market we will use the new location in Chengdu to create additional capacities, as our existing facility in Hangzhou will reach its limit within the next two years”. The decision to build its new plant in Chengdu follows Bosch’s strategy to invest to a greater extent in the Western and middle regions of China. The new location’s land area is twice the size of the existing location in Hangzhou.
Bosch Packaging Technology will start operations in Chengdu at the beginning of next year in a leased production hall. Construction work for the new plant is set to start in 2014. A year later, the first expansion phase will be completed when a building of 13,500 square meters of floor space will be ready for occupation. The production area will occupy 7,200 square meters of the total floor space. By that time the site in Chengdu will employ 300 associates. The new facility will enable Bosch to serve the Pharma, Food and Confectionery sectors with packaging machines of medium output capacity.
“As China’s largest production center of packaging machines is currently developed in Chengdu we have consciously chosen the location for our new production site as well”, explained Walter Häcki, General Manager of Bosch Packaging Technology’s Chinese production facilities. According to Häcki both China’s emerging market as well as the region’s excellent infrastructure convinced Bosch to build its new production facility in Chengdu. In addition a large number of suppliers are based around the area as well. Häcki continued: “The region also provides good technical colleges and universities which are essential for the recruitment of qualified staff in the future.”
Honorary Citizenship awarded to Walter Häcki
Following the signing of the agreement, Walter Häcki was awarded an Honorary Citizenship of Pujiang county. This makes him the first foreign Honorary Citizen of Pujiang. The award was given to Walter Häcki as a representative of Bosch Packaging Technology. The Pujiang government thereby honors the company’s commitment. At the award ceremony, government representative Bin Liu stressed that by locating its second production facility in Chengdu (Pujiang county, Sichuan province), Bosch is supporting the economic and industrial development of the region.
The Bosch division Packaging Technology, based in Waiblingen (Germany), is one of the leading suppliers in the field of packaging technology. In 16 countries worldwide it develops and produces complete systems in packaging and process technology for the pharmaceutical, confectionery and food industries. Customized system solutions complete the service package. Bosch Packaging Technology’s sales and service teams operate worldwide. More information at www.boschpackaging.com.
The Bosch Group is a leading global supplier of technology and services. In the areas of automotive and industrial technology, consumer goods, and building technology, some 285,000 associates generated sales of 47.3 billion euros in fiscal 2010. For 2011, the company forecasts sales of more than 50 billion euros and a headcount of a good 300,000 by the end of the year. The Bosch Group comprises Robert Bosch GmbH and its more than 350 subsidiaries and regional companies in over 60 countries. If its sales and service partners are included, then Bosch is represented in roughly 150 countries. This worldwide development, manufacturing, and sales network is the foundation for further growth. Bosch spent 3.8 billion euros for research and development in 2010, and applied for over 3,800 patents worldwide. With all its products and services, Bosch enhances the quality of life by providing solutions which are both innovative and beneficial.
Bosch is celebrating its 125th anniversary in 2011. The company was set up in Stuttgart in 1886 by Robert Bosch (1861-1942) as a “Workshop for Precision Mechanics and Electrical Engineering.” The special ownership structure of Robert Bosch GmbH guarantees the entrepreneurial freedom of the Bosch Group, making it possible for the company to plan over the long term and to undertake significant up-front investments in the safeguarding of its future. Ninety-two percent of the share capital of Robert Bosch GmbH is held by Robert Bosch Stiftung GmbH, a charitable foundation. The majority of voting rights are held by Robert Bosch Industrietreuhand KG, an industrial trust. The entrepreneurial ownership functions are carried out by the trust. The remaining shares are held by the Bosch family and by Robert Bosch GmbH.
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