Vossloh formally opens factory in China
At an official ceremony attended by 320 guests, Vossloh today Friday opened a newly constructed industrial complex at Kunshan, just outside Shanghai. Guests of honor included high-ranking representatives from the Chinese Rail Ministry, Deputy Consul General of the Federal Republic of Germany Peter Kreuzberger, former Undersecretary of State and now consultant to the Chinese government Siegfried Lengl, plus representatives of the provincial government and local industrial partners.In the main factory, Vossloh is producing rail fastening systems to be employed in the construction of China’s new high-speed lines such as the so-called Olympic line from Beijing to Tianjin. In the fall of 2006, Vossloh had been awarded two megacontracts worth a total €185 million. The first of these worth €19 million, had been handled through exports from Germany, the much larger second one will be sourced locally from the new factory. As a consequence, the plant will be working to full capacity until the end of 2008. Together with Vossloh, two smaller Chinese-European joint ventures have also set up shop in the industrial complex built by Vossloh. These are, in fact, longstanding partners of Vossloh that produce rail fastening components on the premises.
The main factory is operated by a joint venture between Vossloh and China’s Nanjing Iron Steel Co. Ltd. (NISCO). Vossloh holds a stake of around 80 percent in the venture. The new factory, which currently employs a workforce of some 100, came on stream back at the start of July, and has already manufactured over 1.5 million tension clamps.
“Our own production facility in China is a further milestone in the direction of internationalization,” says Werner Andree, CEO at Vossloh AG. “Despite tougher competition, with our local presence we count our chances as good when bidding for future contracts from the Chinese government.”
Werdohl/Kunshan, China, November 16, 2007
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