Auto industry supplier KSPG AG, Neckarsulm, Germany, a member of the Rheinmetall Group, is broadening its presence in the Chinese market. Since 1997, the company has been operating two Chinese joint ventures with a workforce of approximately 3,500 at six locations in the Shanghai and Yantai regions. In 2011, these 50/50 ventures generated sales of about 300 million euros ($403,470,000 U.S.).
In recent years, the KSPG Group also has established several wholly owned subsidiaries in China. Through these and in addition to the joint ventures, KSPG will operate independently on the Chinese auto market. Pierburg China manufactures exhaust gas recirculation systems at a newly built location in Kunshan and has started production of throttle bodies destined for the Chinese market. With the opening of the KSPG House in Zhangjiang (Pudong District), a base has been established for all the wholly owned Chinese subsidiaries of the group and will serve as the strategic launch pad for further growth.
“Our aim is for the new location to provide an opportunity for further parts of our group to be represented on the flourishing Chinese domestic market. Just as then with the joint ventures, these start-ups are by nature still modest. Yet if we look back on our success story so far in this country, we can anticipate the development of these newcomers over the years ahead,” said Dr. Gerd Kleinert, CEO, KSPG AG.
The KSPG House will be the point of contact for all KSPG customers in China. Besides Pierburg and Motor Service, there will be the Chinese branch of KS Gleitlager and of Pierburg Mikuni Pump Technology, a majority-held joint venture. The large-bore pistons business will set up its Asian branch in connection with its own production base in China.