New Changchun joint venture plant marks the start of a new era for MANN+HUMMEL in China
As part of its growth strategy in China, the MANN+HUMMEL Group recently celebrated a major milestone with the opening of a new production plant in Changchun. MANN+HUMMEL FAWAY Filter Co., a joint venture between MANN+HUMMEL and FAWAY Automotive Parts Co. significantly expands its production capacity and product range with leading filtration technology and increased product localization.
Shanghai, 27th September 2013 – Today, German filtration specialist MANN+HUMMEL has announced that its joint venture company, Changchun MANN+HUMMEL FAWAY Filter Co. Ltd (known as MANN+HUMMEL FAWAY), has opened a new production plant in Changchun. Located at 2177, Feng Yue Street in the Changchun Automotive Economic -Technological Development Area, the facility lies at the heart of one of China's key automotive industry hubs. The site covers 4.5 hectares and represents an investment of hundred million RMB. The opening of the plant marks a new chapter in MANN+HUMMEL FAWAY’s decades of development and a major milestone for MANN+HUMMEL's long-term growth strategy in China.
The joint venture was established in December 2002, when MANN+HUMMEL joined forces with domestic automotive company Changchun FAWAY Automotive Parts Co. to focus on the commercial vehicle market and industry segment. The combined entity quickly won recognition within the industry for its advanced technology and outstanding product quality, and was commissioned by FAW Jiefang Automotive Company to supply components for FAW's truck and diesel engines.
In 2012, MANN+HUMMEL FAWAY expanded its business, investing substantially in the development of components for passenger vehicles alongside its commercial vehicle business. This initiative was successful, winning a range of passenger vehicle contracts including the supply of a 4GB engine oil module, Mazda 6 Economy and Besturn B50 vehicle air filters for FAW Car company, and a key air filter systems project for the new Sagitar vehicle replacement model for 2015 and Bora vehicle model for FAW-Volkswagen, which today accounts for 30 percent of the company's passenger vehicle sales. With the new project awards in the passenger car segment, the company can strengthen its firm footing in China's domestic car segment, and better balance its risks arising from market volatility by serving passenger, commercial vehicle and industry customers.
The product range maufactured in the new plant has become more versatile. Together with the existing product families such as air filter systems, oil filters, fuel filters, centrifuges and air dryer boxes, the new plant will produce also engine covers, intake manifolds, air filter elements for passenger vehicles, cabin filters, turbo charge ducts and acoustic resonators. This newly-expanded portfolio will spell major improvements in the level of service MANN+HUMMEL FAWAY provides its automotive and industrial customers.
Advanced manufacturing equipment and new production lines have also been installed in the new plant, including high-volume production for non-metallic parts and infrared welding technology, to achieve new levels of product standardization and mark a major step forward in process technology. The stamping equipment used in the new plant represents a dramatic improvement in terms of quality control measures for strategic component. MANN+HUMMEL FAWAY's considerable efforts to ensure product quality through standard production management were recently recognized by the MANN+HUMMEL Group, which awarded the "MANN+HUMMEL Quality Award" to the joint venture.
Speaking at the opening ceremony for the new plant, Mr. Josef Parzhuber, MANN+HUMMEL's Group Vice President and CEO Asia-Pacific said, "As a core supplier to the FAW Group, MANN+HUMMEL FAWAY has achieved excellent results over the past decade. The relationship between the two parent companies has gone from strength to strength, and the opening of our new plant at Changchun is visible proof of that. It also highlights the determination of MANN+HUMMEL Group to increase our presence in China and our confidence in the future of the automotive industry in China, which is a key pillar in our global business strategy. We're very fortunate to work together with the best local partners based near our strategic customers. With the technical application centre in Changchun, we will serve our customers with advanced technologies tailored to local market and customer-specific requirements. I believe that leading technology and premium quality is a solid foundation that will pave the way for even more success in the years to come."
For the MANN+HUMMEL Group,filtration business has a record of steady growth over the recent years. Despite the volatility of global markets in 2012, revenue grew again by 5.8 percent. With the momentum continuing during the first half of 2013, MANN+HUMMEL enjoyed growth of approx. 2.7% and achieved a turnover of 1.35 billion euros (previous year, 1.31 billion euros).
To prepare for future growth, MANN+HUMMEL China expanded its production footprint year by year with new plants in Shanghai, Jinan, Liuzhou for Original Equipment and Aftermarket production and through a strategic acquisitions of a local filter manufacture in Bengbu City mainly for the mid price segment in the Aftermarket. The company's aggressive expansion strategy underlines the importance that MANN+HUMMEL attaches to the Chinese market, and its confidence in the future of the automotive industry in China. The company plans to maintain its strategy to generate more business also with local vehicle manufacturers in order to gain a bigger share of the Chinese market.
To date, the strategy has proven successful, and MANN+HUMMEL's ongoing expansion has driven outstanding business performance. Superior product quality and excellent services continues to be a winning formula for MANN+HUMMEL, which has won a host of "Best Supplier" awards from well-known automotive manufacturers and industry customers.
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Photo: Opening ceremony on 27th September
The MANN+HUMMEL Group is a leading global expert for filtration solutions and development partner and original equipment supplier to the international automotive and mechanical engineering industries. Employing 14,575 people at more than 50 locations worldwide, the company achieved turnover of about 2.6 billion euros in 2012. The group’s product portfolio includes air filter systems, intake manifold systems, liquid filter systems, cabin filters and plastic sound components (known as 'symposers'), as well as filter elements for vehicle servicing and repair. For general engineering, process engineering and industrial manufacturing sectors the company’s product range includes industrial filters, a series of products to reduce carbon emission levels in diesel engines, membrane filters for water filtration and filter systems.