Germany-based Voith is set to invest around €25m in the construction of a new production plant for rail vehicle components in Shanghai, China.
The move forms part of the company’s strategy to accelerate the expansion of rail vehicle component production in China for the Asia-Pacific region.
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Spread over an area of around 10,000m², the new production plant will become operational in the spring of 2016.
This will enable the company to develop even stronger ties as a local company in China and will ensure higher local value creation.
Voith Management Board member Carsten Reinhardt said: "We are moving closer to our customers and will therefore reinforce and further expand our position in the Chinese market."
The company will also establish an engineering centre to develop and adapt components on site in order to meet local customer requirements.
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By GlobalDataThe market for high-speed and regional trains, as well as the expansion of metro and tram systems in the megacities, is expected to see a significant growth in China and the Asia-Pacific region.
Voith Turbo has already opened assembly and production sites for rail and commercial vehicle drive components in Shanghai in 2007.
It also holds a 50% stake in two joint ventures including gear unit manufacturer Voith Lutong Urban Rail Gearbox Technology in Changchun and the Scharfenberg coupler producer Voith Schaku KTK Coupler Technology in Shanghai.
