Kennametal Inc., Latrobe, PA, has opened its new Tianjin, China, manufacturing facility less than a year after the company first announced groundbreaking for the operation.
Located in the Tianjin Economic Development Area (TEDA), the facility, initially sized at 160,000 square feet, will employ 200 people in manufacturing and advanced engineering and design activities. The operation could grow to 450,000 square feet and employment could reach 400 people.
The $31 million invested in this plant is in addition to the approximately $35 million that Kennametal has already invested in its China businesses in other locations. This new capability will enable the company to more effectively serve a rapidly developing Asia Pacific market as well as support Kennametal’s global customers with locations in the region.
“The size and importance of this rapidly expanding market demands that we enhance our presence,” said Kennametal President and CEO Carlos Cardoso. “… Our presence promotes customer intimacy, shorter lead times, global quality/local availability, and positions Kennametal well to succeed in this market.”
Kennametal now operates sales offices and logistics support in 10 countries across Asia Pacific, including Japan, South Korea, Taiwan, China, Thailand, Malaysia, Singapore, Australia, New Zealand, and India serving customers in many market segments, including aerospace, heavy industry, electronics, die and mold, mining, construction and vehicles.
The company began operations in China in 1991 via a wholly owned subsidiary now named Kennametal Xuzhou Co. Ltd. In the ensuing 15 years, Kennametal has established Kennametal Ltd., a manufacturing plant in Jinqiao Export Processing Zone in Pudong, Shanghai, and completed the purchase of what is now Kennametal Hardpoint Inc.
“The heightening of our presence in China is directly in line with our corporate growth strategy to balance our business geographically. Currently about half our revenues come from outside North America, and we want to grow our business, both organically and through acquisition, to be one-third in North America, one-third in Europe and one-third in these important emerging economies,” Cardoso said.
