Greater flexibility and cost savings to be realised
The partnership between technotrans AG and KLH Kältetechnik GmbH is taking on firmer contours. In the course of the next few weeks technotrans will be relocating its manufacturing operations from Beijing to KLH's base in Taicang. technotrans has maintained its own manufacturing location in China since 1997, and builds mainly dampening solution circulators for the local market there. By relocating operations to KLH, combined capacity utilisation will be optimised, there will be greater flexibility to adjust to short-term fluctuations in demand, and the lower structural costs will provide a lasting boost to competitiveness.
KLH has been producing cooling systems for the Asian market, used mainly in the laser industry, since 2009 through its subsidiary Taicang KLH Cooling Systems Co., Ltd., in Jiangsu Province (PR China).
The Taicang location, some 50 km north-west of Shanghai, is the focus of Sino-German joint ventures. The city of around 450,000 is in the Yangtze delta – one of China's most important machine tool engineering regions. The well-developed infrastructure and the ready availability of specialists are attracting international investors to what is a relatively small city in Chinese terms. To date, around 1,000 foreign companies from over 20 countries have invested in ventures in Taicang. One of the largest groups is German industry, including the wall plugs manufacturer Fischer, the saw manufacturer Stihl and mechanical engineering company Trumpf. Economic growth has been an annual 50 % since 1996.
technotrans' customers in this important market will continue to be looked after by the sales and service team in Beijing, which will shortly be moving into new offices. "This manufacturing partnership is an important milestone in the process of jointly tapping this important growth market," remarked Henry Brickenkamp, Spokesperson of the Board of Management of technotrans AG.