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K MOBIL ‹ - Kirchhoff Group

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KIRCHHOFF Automotive Markets: New plants<br />

China – the fastest growing<br />

automotive market<br />

z KIRCHHOFF Automotive follows its customers to China<br />

KIRG.<br />

INDIEN<br />

Urumchi<br />

•<br />

NEPAL<br />

BANGLAD.<br />

Lhasa<br />

•<br />

BHUTAN<br />

MONGOLEI<br />

Harbin<br />

•<br />

Shenyang<br />

•<br />

PEKING<br />

Tianjin•<br />

Lanzhou<br />

• Zhengzhou<br />

Xi`an •<br />

• Nanjing<br />

• • Shanghai<br />

Chengdu Wuhan •<br />

Suzhou<br />

•<br />

•<br />

Chongqing•<br />

Kanton<br />

•<br />

N.KOREA<br />

Taipei<br />

•<br />

TAIWAN<br />

S.KOREA<br />

BURMA<br />

VIETNAM<br />

Suzhou, in the east of China, is part of the metropolitan area of Shanghai<br />

With the foundation of »KIRCHHOFF Automotive Suzhou<br />

Company Ltd« KIRCHHOFF opens its 17th plant as 100%<br />

subsidiary at Suzhou, China in the metropolitan area of<br />

Shanghai.<br />

Metal structural parts will be produced on an initial area of<br />

2500 sqm (25,000 sq.ft.) for the Chinese production sites of<br />

existing European KIRCHHOFF customers FORD and OPEL.<br />

These include bumper systems for the FORD Fiesta and MAZDA<br />

323 as well as Cross Car Beams for the OPEL Vectra. True to<br />

the KIRCHHOFF Automotive strategy, both products and tools<br />

were designed to perfection in close cooperation with customers<br />

at the company's central development department located in<br />

Attendorn, Germany before finally being passed on to China<br />

for series production. Arndt G. <strong>Kirchhoff</strong>, CEO of KIRCHHOFF<br />

Automotive emphasized: »We are not outsourcing, but<br />

simply following our customers to the countries in which<br />

they produce.«<br />

In its initial phase of expansion, KIRCHHOFF Automotive China<br />

will be employing 65 workers, led by a local management<br />

team. »We wish to become a Chinese company in Suzhou in<br />

the Shanghai metropolitan area. Our employees come from<br />

that region and the heavy machinery, for instance the presses,<br />

have all been purchased locally.<br />

At least this makes it possible for our employees to read and<br />

understand the manuals«, said Arndt G. <strong>Kirchhoff</strong> in an<br />

KIRCHHOFF Automotive Suzhou Company Ltd.<br />

interview with the »Iserlohner Kreisanzeiger«, a local German<br />

newspaper.<br />

KIRCHHOFF is planning to invest around 5 million euros in<br />

presses ranging from 250-500 tons pressure capacity and<br />

various types of gas welding equipment. The production will<br />

be running at full capacity from November 2007, with a further<br />

expansion projected for mid-2008. Operating permission for<br />

the company was granted in June 2006.<br />

After a benchmark analysis of seven industrial areas, KIRCHHOFF<br />

Automotive finally decided for the Suzhou location because<br />

of its proximity to customers, its infrastructure and its management<br />

criteria. Suzhou, with its many canals, is often known<br />

as the »Venice of the Orient« and its excellent transport<br />

connections have been crucial in helping it become one of the<br />

typical boom cities of modern China with over two million<br />

inhabitants.<br />

With the establishment of this plant, KIRCHHOFF Automotive<br />

has taken the first step in the fastest growing automotive<br />

market in the world. In 2007, the production of automobiles<br />

in China will exceed that of Germany for the first time with<br />

a planned production of 5.7 million vehicles. Growth rates in<br />

double figures can be expected every year from now till 2012.<br />

Ulrich G. Schröder<br />

l 10 K›<strong>MOBIL</strong> | Issue 28 | December 2006

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