DMG, the world's second-largest and Europe's biggest machine tool producer, plans to build two more technology centers in China this year for a stronger foothold in the country, which it expects will become the company's top global market in five years.

 

"We plan to add two more technology centers with showrooms in China this year, located in Shenyang and Dalian in Northeast China's Liaoning Province," Thorsten Schmidt, board member and chief sales and service officer of DMG, told China Daily yesterday during the 10th China International Machine Tool Show in Beijing.

 

"The move reinforces our strategy in China: to be customer-oriented as well as provide China with new technologies."

 

The German company now has three technology centers in China, one in Shanghai, one in South China's Guangdong Province and the other at Tsinghua University in Beijing.

 

China is the world's largest machine tool market, with its capacity valued at 10.57 billion euros, accounting for 22.1 percent of the world market, followed by Japan and Germany.

 

"However, China is only the third-biggest market for DMG, behind our home market of Germany and Italy. But I am sure it will be our top market in five years," said Schmidt.

 

He said the company achieved a 30 to 35 percent annual growth rate in the past three years. "We expect the figure to be between 35 and 40 percent in 2007. We occupy 6 to 7 percent of China's machine tool market but hope to double it to 15 percent within three years."

 

His confidence stems from China's status as the world's manufacturing hub, especially in the auto, spare parts and aerospace industries.

 

"Each year we will focus on one particular industry to maintain our steady growth. This year, we are focusing on aerospace," said Schmidt.

 

DMG entered China in 1985 and set up its wholly owned manufacturing base in Shanghai in 2002.

 

(China Daily April 12, 2007)