TIANJIN, Sept. 5 (Xinhua) -- Inside the production workshop of a German precision technology company located in north China's Tianjin Municipality, automated equipment hums at full capacity as precision springs roll rhythmically off the production line.
KERN LIEBERS Group, a 138-year-old German family-owned company, has just completed the second-phase expansion of its Tianjin plant in August, with an additional investment of 120 million yuan (about 17.7 million U.S. dollars).
With the expansion, the newly added medical spring production line is set to become the group's most advanced of its kind globally.
Erek Speckert, chief executive officer of KERN LIEBERS Group, said China is not only one of the company's most important markets, but also a global hub for manufacturing innovation and industrial development.
He noted that continued investment in China, close alignment with customer needs, and the strengthening of local capabilities form an integral part of the group's long-term growth strategy.
His confidence in China's long-term investment potential is echoed by executives from several other German companies operating in Tianjin, as they cited vast market, strength in supply chains, and a favorable business environment as essential draws.
MARKET POTENTIAL
Innomotics, a global provider of motors and large drive systems, is another German company that doubled down on its "China bet." Its new plant began operation in Tianjin this June, with total investment of about 600 million yuan.
The facility has become the company's most comprehensive R&D and production base for high-voltage and high-power low-voltage motors outside Germany. With an annual production capacity of up to 2,500 MW, the new plant is capable of generating enough electricity to power a megacity for an entire year.
Lu Zheng, general manager of Innomotics Large Motors (Tianjin) Ltd., explained the importance of expanding local production capacity in China. China has already become Innomotics' largest single market globally. Key customers for the company's products, including marine engineering equipment, vessels and data centers, are all based in China. Ramping up local capacity helps shorten delivery times and reduce costs.
Data published by Germany's Federal Statistical Office in August shows that, with a bilateral trade volume of 125.5 billion euros, China remained Germany's most important trading partner in the first half of 2026.
STRONG INDUSTRIAL & SUPPLY CHAIN
China's strengths in industrial and supply chains, as well as its pool of skilled talent, have also motivated German companies to boost investment.
"When planning our global factory layout, we evaluated factors including industrial foundation and talent pool, local supply chain capabilities and project execution," said Oliver Beck, global head of Innomotics HV (High Voltage) Division, explaining how they chose Tianjin as a base that meets all their requirement.
"The products made here can be supplied to the Chinese market and also be exported globally," Beck added.
"The Chinese team is deeply involved in key processes such as product development, process optimization and validation. Local R&D achievements are also feeding back into Innomotics's global product lines," Lu said.
Flender Ltd., China, which has been rooted in Tianjin for three decades, has completed 10 rounds of expansion locally, maintaining an annual output value of around 5 billion yuan.
Flender, the German transmission equipment leader, founded in 1899, settled in Tianjin 30 years ago with just a single workshop and a dozen employees. Today, its Tianjin plant covers 255,000 square meters and employs over 2,000 people, having grown into the company's largest R&D and production base for reducers outside Germany.
In June, Flender launched eight new gearbox models applicable to high-end equipment manufacturing and wind power facilities, among other applications.
A set of figures underscores Flender's confidence in deepening its presence in China -- more than 80 percent of its suppliers are from China, and 95 percent of the materials and components they need for production can be sourced locally.
KERN LIEBERS, meanwhile, is tapping into the potential unleashed by China's industrial upgrading. In 1993, the company established its first subsidiary in China. Initially, its Tianjin factory primarily served FAW-Volkswagen, which also operates in the city. As China raced ahead in new energy vehicles, electrification, intelligence and automation, the company has transformed and upgraded its product portfolio accordingly.
FAVORABLE BUSINESS ENVIRONMENT
Behind corporate investment and expansion is the efficient support and targeted services provided by local governments.
For the Innomotics project, the local government took care of the plant construction and helped the company to move in with minimal hassle, shortening the project implementation time by almost a year.
When the second-phase plant of KERN LIEBERS's Tianjin plant underwent final inspection, the local government streamlined the paperwork and helped the company meet the critical window for equipment installation.
The Business Confidence Survey 2025|26 released by the German Chamber of Commerce in China shows that over 90 percent of German companies explicitly stated they have no plans to leave China in two years. A third of companies said that innovation and efficiency improvements generated by their Chinese teams are now feeding back to their German headquarters.
Oliver Oehms, executive director and board member of the German Chamber of Commerce in China (north China), said that slightly over half of member companies plan to further deepen cooperation with Chinese partners. Together with stronger localization across the entire value chain, these measures are among the most important strategies German companies in China are pursuing to strengthen their market position sustainably.
"Our development would not be possible without the support of our Chinese customers, employees or partners. We look forward to growing together with the entire industrial chain," Hua Li, vice president of Regional Corporate Center China, KERN LIEBERS Group, added. Enditem
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