MannHummel GmbH, the world's leading industrial and automotive filter maker, is spending 40 million euros (US$59 million) to build a new plant and China headquarters in Shanghai to meet growing market demand and push it into the top five auto suppliers in Asia.

The 60,000 square-meter new plant in Jiading District, known as the biggest auto components park in Asia, will be MannHummel's fourth facility in China, according to Manfred Wolf, senior executive vice president of MannHummel in Shanghai.

The company will mainly produce filter systems and filters. Building work on the Shanghai complex will begin in January with production to start in 2010, Wolf told Shanghai Daily yesterday.

"When we go to Jiading, it will serve our needs until the end of 2012," said Wolf. "We expect to have very significant growth over the next few years."

Apart from being the base for aggressive expansion, the China market plays a strategic role in MannHummel's aim which is to be one of the top five suppliers in Asia.

Following moves in Europe and North American, MannHummel is accelerating its development in Asia through a series of investment and industrial acquisitions.

Asia focus

The booming auto industry in developing countries such as India, China, South Korea and East Europe along with the influx of auto makers has helped to create heated market demand.

The Ludwigsburg-based MannHummel estimated the percentage turnover share of Asia would grow from 4 percent last year to 15-20 percent in 2016.

Sales in China would also jump to 200 million euros by 2016, compared with 50 million euro last year, he said.

The Shanghai center will also be MannHummel's China headquarters and Asian research and development center, Wolf said.

"Even if sales slow, we are here for long-term," Wolf said.

Wolf said China's aftermarket remained a big challenge due to counterfeited production selling at lower prices.

MannHummel were founded in 1941 with the team up of two family-owned companies. Last year, it gained sales of 1.75 billion euros worldwide and employed 11,500 staff in 41 countries.

(Shanghai Daily August 26, 2008)