MAN expands business in China

New turbo plant to open in China

(PresseBox) ( München, )
MAN trucks and buses can be found on all of China's roads. MAN is the market leader for large marine Diesel engines in that country's rapidly growing shipbuilding industry. The Group's compressors and turbines are recording high growth rates in China. In recent years, MAN AG has consistently expanded its business in the growing Chinese market. By opening a new plant in Changzhou (Jiangsu Province), in which two hundred employees will soon be manufacturing industrial turbocompressors, the Group is moving successfully ahead with its long-term strategy in China.

In 2007, the MAN Group generated sales of 579 million euros in China - an increase of almost 41% compared with 2006. "China is not only a strategic growth market for MAN AG, but a country with which we as a company have a strong and lasting association," said MAN CEO Håkan Samuelsson. The new turbo plant in Changzhou is a "logical continuation" of this China strategy, added Mr. Samuelsson.

In June 2007, the MAN Group bundled activities carried out by its various divisions into an MAN House in Peking, creating the first joint sales and service platform for customers in China and enhancing the image of the MAN brand.

As early as 1983, MAN established a foothold in the Chinese market by licensing vehicles of its subsidiary Steyr. Some 400,000 vehicles that are based on this technical platform have been built since then. These vehicles are valued by Chinese customers due to their reliability and economy.

MAN Nutzfahrzeuge is also expanding its sales network in China. Beginning in January 2009, MAN will be able to carry out direct imports and as a result, open more sales and service centers in the entire country. This will increase the company's market presence in coming years and contribute to more sales of MAN commercial vehicles in China in coming years, including trucks of the new TGX and TGS series, which were presented on the Chinese market for the first time at the Beijing Truck Fair 2008 as "Trucks of the Year".

As global market leader, MAN Diesel is benefiting from the growth in China's shipbuilding activities, having established itself as market leader in the field of large marine Diesel engines. Every second medium-speed large engine built by MAN Diesel is sent to China. This includes engines from the company's own production sites as well as those licensed to be built in Chinese shipyards. Above all, licenses play a decisive role in the two-stroke engine sector. In May 2008, MAN Diesel signed another license agreement with Zhoushan Zhongji Diesel Engines Manufacture Co. Ltd., which serves the Jinhaiwan Shipyard and other major shipbuilders as a component supplier. In 2007, MAN Diesel's order intake from China amounted to nearly 300 million euros - an increase of 45% compared with 2006.

In the wake of China's rapid economic development in recent years, there has also been a sharp rise in the demand for machinery and other products manufactured by MAN Turbo. In terms of volume sales, China is now the division's largest market worldwide. Due to licensing and sales of compressors and turbines, the company has been active on the Chinese market for a number of decades. By opening the new plant in Changzhou in the Yangtze Delta, MAN Turbo continues to expand its leading market position. In the future, these local production facilities will enable MAN Turbo to respond even faster to the demands of Chinese customers and also offer improved service. The investment required for the production workshops, which will initially cover 10,000 square meters, amounts to 15 million euros. At a later stage, MAN Diesel is also planning to manufacture turbochargers for heavy-duty marine Diesel engines at the same site.
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