German industrial conglomerate Freudenberg Group plans to invest 250 million yuan (US$33 million) in China in coming months to expand production and its distribution network as makers of industrial goods buy more of its products.

 

The bulk of the funds will be used to finance construction of a factory in eastern Shandong Province and expansion of existing plants, which will help it meet its goal of doubling its local employment and sales volume in China from last year's level by 2010.

 

"Sales volume has doubled in China within the past five years, which shows the significance of China to the group's development, but also poses challenges like our demand for talented people to help us continue to grow here," said Hanno Wentzler, president of Freudenberg's chemical division.

 

Foundation for its rapid growth came after the company, the world's leading seal and vibration control equipment supplier, has poured 1.2 billion yuan to expand production and distribution network since 2000. It expects its China sales this year to grow at about 25 percent from last year's 500 million euros (US$745 million), which was about 10 percent of its global revenue.

 

The new plant, in Yantai, will make air springs, which are widely used in vehicles, mining machines and medical devices. The plant will be completed next year and will employ 200 employees.

 

Expansion will take also place at its existing plants, including a facility in Suzhou of eastern Jiangsu Province. The company now runs 14 production bases in China and employs 3,600 people. It operates with its Japanese partner NOK another seven plants making seals and vibration controls, employing an additional 5,200 workers.

 

(Shanghai Daily November 29, 2007)