Festo reinforces its foundation in China for future growth
With the extended and upgraded plant and a newly established Regional Service Centre in Jinan, Festo secures its supply of products and services for the Chinese Market over the coming years. The expanded Asia Pacific Technical Centre and Greater China Solution Engineering Centre together provide products and solutions tailored to the specific needs of fast-growing customers in Asia. By introducing key account management, 5 sales zones in Greater China are focusing on industry segments to providebetter customer experience.
For recent years, China market has been growing at a record pace. Festo is investing heavily in China in order to benefit from the country’s growth and capture market share in China and the rest of Asia. Festo supports its international customers and the Chinese economy with manufacturing, automation and skills training solutions – made by Festo through expanding its capability and capacity of sales, production, material flow and research and development.
Festo has been enjoying double-digit growth rates in China for many years. “China already boasts the world’s largest domestic market, highest industrial output and biggest automotive market – and as a result will also be the world’s largest market for automation technology in the coming years. China’s manufacturing industry is increasingly applying international quality standards. The clear trend among the country’s domestic manufacturers is away from manual labour and towards automated production processes. This offers tremendous growth opportunities, which we are already enjoying and will expand further in the coming years. ” stressed Dr. Eberhard Veit, Chairman of Management Board. And he added: “Customers in Asia expect the same service and excellent delivery as we are known for in Europe.”
With the spirit of “in the region for the region”, Festo has reinforced its foundation for future growth in China.
Jinan Global Production Center (GPC Jinan)
Festo Production Co. Ltd. was founded in 2007 as a result of Festo’s acquisition of Jinan Huaneng Pneumatic Company. In 2011 Festo started a 20-million-Euro project for extension and upgrading of the plant, increasing production area from 20,000 sqm to 46,000 sqm, as well as plans for further expansion of local assembly, logistics and support. In addition, Festo has heavily invested in upgrading the production facilities. In 2012, GPC Jinan successfullyintegrated into Global Production Center network as the 11th manufacturing basis in Festo worldwide, demonstrating the plant is operating at a high quality and management standard of manufacturing, material flow and service, meeting stringent Festo requirements.
Regional Service Centre, China (RSC China)
The above-mentioned 20-million-Euro investment also includes the founding of RSC China, which started operationin March 2012. It is the 4th regional servicecenter of Festo, and the largest outside of Germany. At present, RSC China covers supply for all cities of China mainland, and will gradually cover Korea, Japan and etc.
“Our Chinese customers expect top quality ‘made by Festo’, with guaranteed supplies and next-day delivery at prices in keeping with local market conditions. At the same time, energy efficiency, environmental protection and occupational safety are becoming increasingly important. The factory extension in Jinan will secure our regional supplies to the Chinese market for the years ahead,” concludes Dr. Hong Zhou, Head of Global Production Centre Jinan.
Asia Pacific Technical Centre and Solution Engineering Centre
For recent years, Festo has been enjoying and keeping stable business growth in China mainland, Taiwan, Korea and ASEAN countries. In order to meet the requirements of customers from the fast growing markets and to provide customized products and services perfectly tailored to the customers’ specific applications, Festo founded Greater China Solution Engineering Center, and invested RMB 30 million in expanding AsiaPacific Technical Center(APTC) in 2012, strengthening research and development capability in customized products and solutions. APTC will see an effective scale-up in product and system development, and reduce the lead time of product innovation. The expanded APTC will start operation in early 2013.
With the localized customized products, project engineers and engineering support specialists, Festo has established an even closer relationship with the customers, timely delivering excellent services to more than 25,000 customers in the region.
Education partner Festo Didactic: skilled staff for companies in China
Since started business in China in 1985, Festo Didactic has delivered a variety of engineering support to more than 500 education partners, universities, vocationalinstitutes and industrial training centres – with everything from basic courses to turn-key equipment for mechatronic learning centres.
In 1990, Festo and BaoSteel Group cooperated with each other in founding the trainingcentre for staff of the latter. This created a new cooperation method between a multi-national company in pneumatics and a state-owned-enterprise. At present, Festo has founded training centres in partnership with many large- and medium-sized enterprises, meeting the specific requirements of the customers to train their talents. In the meantime, FestoDidactic offers around 40 public training classes each year, suitable for staff training for small-sized enterprises.
“With our Didactic activities, we can help our European, international and also Asian customers train their staff in Asia,” explained Dr. Eberhard Veit.
Corporate Educational Responsibility:practical-oriented engineers with multicultural background
“Corporate Educational Responsibility” is the unique way that Festo practises its duties as a corporate citizen.
Festo is working closely with Tongji University, Zhejiang University, Shanghai Jiaotong University, Huazhong University of Science and Technology, Chongqing University in the field of industrial automation, where Festo’s strength lies, including setting up scholarship, sponsoringeducation and development of talents, as well as investing in the infrastructure of the partnership universities, helping them to improve capabilities in major courses, research and preliminary application research.
In 2004, Festo and Sino-Germany University of Applied Science affiliated to Tongji University (CDHAW) jointly launched “Sino-Germany University Program”, designed to introduce into ChinaGermany’s successful third education system (“Fachhochschule” or “University of Applied Science”), which focuses more on science application,with the aim to foster practical-oriented engineers with multicultural background. When finishing three years study in CDHAW, students will work on their senior year in the partnership university in Germany. They will be granted with degrees from both universities. A total of 450 students have gradated, of which 80% had dual degrees. The graduates are highly appraised amongindustrial companies in both China and Germany.
Corporate Educational Responsibility: promote dual system for vocationaltraining for skilled technician
90% of companies in China have experienced considerable problems recruiting skilled employees. Festo is exporting Germany’s successful “dual” vocational and tertiary education system, educating skilled technician in accordance with the specific needs. As a globally leading industry vocational education and training organization, Festo sees a great market demand in China.
In collaboration with German Chamber of Commerce Abroad (AHK), Jinan Vocational College and three European companies, Festo launched the program for dual system of vocational education in China in July 2011. After more than one-year preparation, Festo Training Center Jinan, located in the compound of Festo Pneumatics Co., Ltdwill be founded on October 30, 2012. It is the first full-scale training centreFesto has established outside of Germany. This includes a fully equipped fitter room, traditional mechanical and CNC workshop, a control technique room - consisting of pneumatic, hydraulic and electric control techniques - as well as a mechatronics system training room furnished with Festo Didactic equipment, together with computer skill, SAP and metrology training rooms.
In 2011, the first group of 50apprentices finished their first yearstudy on basic theory of industrial machinery, and now is working on the second year study which combines the theory and practical operation. They will complete the third year dedicated to on-job trainings at workshops. After three-year study, the apprenticescan expect to take on highly qualified jobs at Festo or the partner companies.
Stronger foundation, higher building
For years, Festo’s business in China has been growing at a speed above the marketgrowth rate. “In China, Festo is serving a great number of large international accounts from industry segments that cover all of our core businesses. Around 50% turnover of Festo China comes from automotive, tire/rubber and food and beverage industries. We provide solutions perfectly tailored to the specific requirement of customers. Therefore, Festo has expanded the support and service engineer teams in branch offices,” Mr JJ Chen said, General Manager of Festo Greater China, “Demand for Festo products and services, as well as our Didactic offerings, is booming.Energy-efficient solutions for green manufacturing and Metropolitan Solutions in the field of water/waste water have never been more popular. Through strategic investment and lay-out in recent years, Festo has strengthened its foundation in terms of infrastructure and talents resources for future growth in China and to better serve Chinese market.”
About Festo Group
Festo is a worldwide leader in the field of automation technology and the global market leader for technical training and continuing vocational education. It is an independent family company, established in 1925, with headquarter in Esslingen, Germany. The company provides pneumatic and electric drive technology for over 300,000 customers in 200 industries world-wide both for factory and process automation. Festo Didactic offers equipment for technical learning centres, as well as training courses to over 40,000 customers worldwide. The Festo Group achieved sales revenues of over € 2.1 billion in its fiscal year 2011, with 15,500 employees represented world-wide in 250 locations.
Festo started its business in China since 1985. Currently Festo has 42 sales and service centres in China. Festo Asia Pacific Technical Centre and Solution Engineering Centre in Shanghai provides customers in the region with products and solutions tailored to their applications. The global production centres in Jinan and Shanghai, together with Regional Service Centre-China in Jinan ensure supply and service to China market. Festo has approx. 1,800 employees in China today. Festo serves industries like automotive, tyre/rubber, food and beverage, electronic and light assemblies, flat panel and solar, biotech-phama and water/waste water plants with pneumatic and electric technologies and total solutions.
More information, please contact:
Ms Lisa Liu
Corporate Communication Manager, Asia-Pacific
Tel: +86-21-6081 5482
FAX: +86-21-6081 5556
Mobile: +86 139 1620 3974
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Festo Group Website:
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