Bosch Rexroth to Invest in China

Bosch Rexroth AG plans to spend $110 million (83 million euro) to expand production capacities in China over three years. In addition to investment for expansion in existing production sites, a new factory will be constructed in Beijing in 2005. The largest subproject within the framework of the investment package is the construction of a new factory in Beijing in 2005. Among other products, axial piston machines will be produced on an area of 85,000 m2 for the Asian market. The new investment has become necessary due to the stretched capacities in the existing Bosch Rexroth factory in Beijing, which has just under 350 employees. The existing production sites will be relocated there.

The largest subproject within the framework of the newly announced 83 million investment package is the construction of a new factory in Beijing in 2005. Among other products, axial piston machines will be produced on an area of 85,000 m2 for the Asian market. The new investment has become necessary due to the stretched capacities in the existing Bosch Rexroth factory in Beijing, which has just under 350 employees. The existing production sites will be relocated there.

The second phase of construction at the factory in Wujin where Bosch Rexroth currently produces hydraulic cylinders and units, will also be carried out. This phase of construction envisages additional production lines for hydraulic, pneumatic as well as linear and assembly technology.

"Through targeted expansion of our business activities in the growth region of China, Bosch Rexroth AG will realize their consistent and long-term investment expansion strategy in important target markets. Lasting growth will thus be ensured for the entire company", said Dr. Alfons Weber, Executive Vice President of Bosch Rexroth AG, who is responsible for business in Asia.

With the investment program, Bosch Rexroth is following the strategy of continuously increasing commitment in China via the appropriate expansions in capacity in order to be able to manufacture market-specific products on location for the home market. In addition, the product portfolio should be continuously expanded so as to be able to deliver all relevant technology for drive and control engineering in the medium term. "China offers great growth opportunities in the medium and long term which we want to utilize", said Dr. Weber.

The company has already in previous years invested a total of 26 million Euro in China. In January of this year, Bosch Rexroth AG made the biggest foreign investment up to now in the Changzhou region with its new factory in Wujin, which employs some 450 people.

Meanwhile, China is the fourth largest foreign market for Bosch Rexroth AG after USA, Italy and France. In the first half of 2004 the company saw its turnover in China, with over 1,100 employees, increase by just under 28% in comparison with the previous year. In 2003 the turnover was 150 million Euro. In the long term Bosch Rexroth AG is anticipating a growth in business activities for all market sectors. This includes both automation production as well as mobile hydraulics and special major projects, for example stage technology. One of these projects is the equipping of a State theatre in Peking for which Bosch Rexroth AG was recently awarded the contract.

In China Bosch Rexroth AG has two production sites, two logistics centers and six regional offices: In addition to the factories in Beijing and Wujin as well as the logistics centers in Shanghai and Hong Kong, the company has sales offices in Dalian, Beijing, Shanghai, Chengdu, Guangzhou and Hong Kong. The head office is located in Shanghai. This is where the management and central departments are based.

Bosch Rexroth AG, a wholly owned subsidiary of Robert Bosch GmbH, achieved sales of EUR 3.7 billion in 2003 with 25,700 employees. Under the brand name Rexroth the company offers drive, control and motion technologies: from mechanics, hydraulics and pneumatics through to electronics and associated services. The global player is a partner to 500,000 customers in 80 countries and an extensive supplier of components and systems for industrial and factory automation and mobile applications.