Wacker Neuson Group is planning to open a new plant near in China, near Shanghai, the company announced. Initially compact excavators will be produced for the local market, followed by additional products. The company expects the first compact excavator to roll off the production line at the beginning of 2018.
The new plant will be in Pinghu, about 30 kilometers from Shanghai. Wacker Neuson CEO Cem Peksaglam signed the corresponding contracts on site last week.
“We have finally decided for the Pinghu location in Zhejiang Province, which best fulfills our requirements and the support of local authorities is outstanding,” said Peksaglam. “We are continuing our strategy of internationalization with this step. In the largest construction machine market in the world, we underline our commitment towards our Chinese customers and trading partners."
The facility is strategically located between Shanghai and Hangzhou as well as having a good infrastructure, Wacker Neuson said. Manufacturing facilities, research and development, quality management, logistics, service and training will be located on about 135,000 square meters (about 1.45 million square feet) with approximately 30,000 square meters (322,917 square feet) of building space. Construction is scheduled to begin in the fall of 2016, with completion expected by the end of 2017.
The products will be designed initially for the Chinese market and later the Asian market.
Wacker Neuson has sold construction equipment in China for more than 20 years. The product portfolio for the Chinese market was extended in 2015 to include compact equipment. An increasing need for improved infrastructure, the extension and modernization of the road and rail network offers attractive growth opportunities for Wacker Neuson, while trending towards more efficient and environmentally friendly compact equipment. A stronger presence in the country, including research and development and production will lay the groundwork for future growth and improvements in the Asia-Pacific region.
