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Automation Technologies 2/2014

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Automation Technologies 2/2014

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News and Markets Back to current issue Labom opens production facility in China The Chinese market is the world’s fastestgrowing economy. Orders from China have quadrupled in the last couple of years for German measuring device manufacturer Labom. The company took this development into account and opened a production faculity in Kunshan, west of Shanghai. The socialist market economy of China is the world‘s second largest economy by nominal GDP. The country is the largest exporter and manufacturing economy in the world. In October 2013, Labom found a production facility in China. Since then, it has been producing devices for measuring temperature and pressure in Kunshan, near Shanghai. Production in the “startup factory” Five employees currently work in the “startup factory”, where the company has rented production space. AUTOMATION TECHNOLOGIES 2/2014

News and Markets In total, five employees produce measuring devices in Kunshan The factory offers the possibility of renting production space of 200 m² and more to highly specialised medium-sized companies from Germany. The Kunshan site is the first manufacturing site the measuring specialist has opened outside the headquarters in Hude, Germany. The decision to open a branch in China was made because for years, China has been the country with the highest growth rates of Labom exports. Exceptional growth in orders According to Labom, orders from China have quadrupled from 2008 to 2012. The company estimates that so-called indirect exports to China have a similar volume. Indirect exports happen when, for example, a German machine-builder buys About Company: Labom Mess- und Regeltechnik GmbH Headquarters: Hude, Germany Turnover: 16m € (2013) Employees: 160 Products: Mechanical and electronical pressure measurement, Diaphragm seals measuring equipment from LABOM and uses it to build a paint-spray line for an automobile factory in China. By building their own plant in Far East, the measuring device manufacturer aims at protecting their good market position in China. It enables the company to meet the growing demands of for shorter delivery periods, technical support on site, and customer-specific modifications of products at short notice. It is difficult to deliver these services from Germany, but the Kunshan branch is perfectly qualified to do so. Production in China protects employment in Germany Labom emphasises that opening a new branch in China also protects the well-being of the headquarters in Germany. Success in the Chinese market also ensures employment in Germany, because it would not be possible or sensible for the company to move all their manufacturing to China. At present, LABOM employs about 160 staff members and has international technical offices and representatives in more than 40 countries. AUTOMATION TECHNOLOGIES 2/2014