Bosch Rexroth Announces a Comprehensive Investment Program
BEIJING—Over the next three years Bosch Rexroth AG will invest 83 million Euros to expand its production capacities in China, beginning with the construction of a new factory in Beijing.
"A targeted expansion of our business activities in China coincides with our long-term investment strategy in important target markets for lasting growth of the company," said Dr. Alfons Weber, executive vice president of Bosch Rexroth AG, who is responsible for business in Asia. Bosch Rexroth is following the strategy of continuously increasing commitment in China in order to have the capabilities to manufacture market-specific products on location for the home market. In addition, the product portfolio will be expanded to be able to deliver all relevant technology for drive and control engineering. "China offers great growth opportunities in the interim and long term which we want to utilize," said Dr. Weber.
The largest project within the framework of the newly announced 83 million-investment package is the construction of a new factory in Beijing in 2005. Among other products, axial piston machines will be produced on an area of 85,000 m2 for the Asian market. A new factory has become necessary due to the stretched capacities in the existing Bosch Rexroth factory in Beijing, which has just under 350 employees.
Construction will also take place at the factory in Wujin where Bosch Rexroth currently produces hydraulic cylinders and units. This phase of construction envisages additional production lines for hydraulic, pneumatic as well as linear and assembly technologies.
The company has in previous years invested a total of 26 million Euros in China. In January of this year, Bosch Rexroth AG made the biggest foreign investment up to now in the Changzhou region with its new factory in Wujin, which employs some 450 people.
China is the fourth largest foreign market for Bosch Rexroth AG after USA, Italy and France. In the long term Bosch Rexroth AG is anticipating a growth in business activities for all market sectors. This includes both automation production as well as mobile hydraulics and special major projects.