Germany-based industrial conglomerate Voith AG opened its third paper machine plant in China, one of the largest in Asia, yesterday to meet growing orders from Chinese paper mills that are expanding production capacity.
The new factory, with 70,900 square meters of floor space in Kunshan, Jiangsu Province, will become its China headquarters for its paper machine division. It will also serve Asian markets such as India.
"It is built to better meet our customers' needs in a region that continues to see tremendous growth for our business," said Hans-Peter Sollinger, president of Voith Paper, during the opening ceremony.
The company has invested 50 million euros (US$57 million) in the facility and will invest more in planned follow-up phases that may include a research and development center.
According to Sollinger, China has contributed about 50 percent of Voith's order growth in the past few years and it is expected to continue through 2010.
Voith, which also makes train parts and hydro-power generators, received total orders of 820 million euros in China in its past fiscal year ending on September 30, from the 350 million euros in the previous year.
The dramatic growth was largely due to booming orders in paper machines. Such orders accounted for about 80 percent of the 820-million-euro orders by contract value and almost one third of all paper machines sold in the period.
In May, Nine Dragons Paper (Holdings) Ltd, owned by the richest self-made woman on China's mainland, placed an order for four new packaging paper machines as part of its plan to double production capacity in the next two years. The order could be worth about 200 million euros.
Voith's China-based paper machine plants are mostly assembly facilities.