January 18, 2013
Production capacities in Chinese industry continue to increase rapidly, and after a brief period of weakness, growth has now picked up again significantly in the country. This means that the demand for high quality components and system solutions for industry also continues to rise. In response to this trend, the Lapp Group is further strengthening its presence in China. This spring, the Lapp Group’s first production plant in China will come on stream.
The new Lapp Cable Works Shanghai Co. Ltd. production plant is located in the Southeast of Shanghai in the Lingang Industrial Park. It has a total floor area of more than 11,000 square metres, with further expansion possible down the line. Directly adjacent are sites owned by global companies such as Siemens, Caterpillar, Atlas Copco and Lenze, alongside well-known Chinese manufacturers like Shanghai Electric and SAIC Motor.
Chairman of the board Andreas Lapp commented: “We have been working in China since 1999 and have numerous customers there, from the automation, industrial machinery and automotive sectors. The new production facilities will enable us to deliver to our customers more quickly and improve our service. I believe there are major growth opportunities for us in China.”
At present, the production machinery is being delivered, all of it meeting the very latest specifications. The extrusion machine for the cable insulation alone can be operated at a top speed of one kilometre per minute. The entire plant produces using the lean method, which has already brought about significant gains in efficiency at the Lapp Group’s other production locations around the world.
Initially, the new plant will manufacture product specially certified for China (China Compulsory Certification), as well as standard products from the ÖLFLEX® power and control cable range. Within around two years, production is due to be ramped up to more than 3,000 kilometres per month. Lapp Cable Works Shanghai will initially employ 30 people. The total investment is 7.2 million euros. The new plant in China means that the Lapp Group is now operating five production facilities in Asia.