German enterprise to expand investment in Shenyang

Updated: 2020-05-20

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A worker produces an aluminum alloy control arm at the OTTO FUCHS plant in Shenyang. [Photo/syd.com.cn]

OTTO FUCHS Technology (Shenyang) Co Ltd, located in Shenbei new zone in Shenyang, the capital of Northeast China's Liaoning province, is a German company specializing in manufacturing aluminum alloy control arms for high-end German automobile manufacturers.

OTTO FUCHS' clients include Audi, BMW, Mercedes Benz and Porsche. It is the only manufacturer of this kind of product in China, and has an annual output of 6.5 million pieces.

The company occupies a leading global position in the research and development (R&D) of non-ferrous metal alloy materials and manufacturing of related products. Attracted by Shenyang's advantages in automobile manufacturing, OTTO FUCHS Group invested 25 million euros ($27 million) in Shenbei new zone and opened its first plant in Asia in October 2010. The plant supplies automobile control arm products to the world's leading manufacturers of high-end vehicles.

In the first quarter of 2020, the company's revenue increased by eight percent year-on-year.

"This year's revenue is expected to be as much as that of last year," said Matthias Scheurich, the company's general manager. "Though the vast majority of manufacturing industries have been affected by the COVID-19 pandemic, domestic manufacturers for high-end automobiles and parts made good preparations before the Spring Festival and were able to resume work immediately under strict epidemic prevention and control.

"We resumed work rapidly and took effective measures, such as letting management staff work from home. We gradually resumed production from Feb 10 and by the end of February, production was basically resumed."

OTTO FUCHS has attached great importance to the Chinese market. During the past decade, the group has completed an investment layout in China, especially in Shenyang, where it is testing an intelligent production line for aluminum alloy control arms. The efficiency of the production line, which does not need any employees to participate in the workflow, will be more than three times higher than traditional ones.

The construction of the second and third phases of the plant will be accelerated. By the end of May, the company will have gone through all the formalities required for approval by Shenbei new zone government. The plant's third phase is scheduled to be completed by November 2020.

According to Scheurich, the company will invest 53 million yuan ($7.5 million) in 2020 and 100 million yuan in 2022, to achieve the target of being based in Shenyang and radiating throughout the country.