Voith invests 50 million in establishing a tire wheel assembly plant in China

Voith Group, a leading global provider of technology and industrial services, held a grand opening ceremony for its new factory in Changshu, Jiangsu on January 4, 2015. The factory, with a total investment of approximately RMB 50 million, will be mainly engaged in the assembly of automobile tires and wheels. Upon its operation, it will further help Voith's business expansion in China, the world's most dynamic automotive market.

As a subsidiary of Voith Industrial Services (China) Co., Ltd., the plant is expected to have 1.1 million tires and wheels assembled each year. The new plant was founded thanks to a 10-year service contract signed by a global leading automotive manufacturer and Voith Industrial Services.

Mr. Guang Wei, Managing Director of Voith Industrial Services (China) Co., Ltd. stated: “Voit is committed to providing a full range of industrial technical service solutions for vehicle manufacturers and auto parts suppliers. Our services are in-depth. Into the customer's various production processes, and follow their pace of global expansion. With the establishment of Changshu's new factory, Voith's expansion in the Chinese automotive market has taken a solid step."

Voith Industrial Services is one of the four divisions of the Voith Group. The industrial services provided include maintenance of production equipment, management of plant facilities, technical cleaning, and manufacturing support.

The Changshu new plant mainly provides tire and hub assembly services for luxury cars. According to statistics from the China Association of Automobile Manufacturers, in the first half of this year, China’s automobile production increased by 9.6% compared to the same period of last year to 11.78 million vehicles. Car sales increased by 8.4% year-on-year to 11.68 million vehicles. Among them, luxury car sales accounted for 9.4%, higher than Japan and South Korea.

Mr. Guang Wei said: “As the competition in China’s auto market intensifies, more and more manufacturers choose service outsourcing to reduce their total operating costs and concentrate more on upgrading their core competitiveness. This trend is driven by 2013/ In fiscal year 2014 (as of September 2014), Voith Industrial Services' annual sales in China reached RMB 240 million, an increase of over 20% compared to the same period of last year. We expect the annual growth rate in the coming years to be More than 25%."

Voith Industrial Services (China) Co., Ltd. was established in 1998 and currently employs more than 1800 people. It provides related services to customers in more than 20 cities and 45 service stations in China. Current major customers include leading auto manufacturers and suppliers in multiple Chinese markets.

About Voith Industrial Services

Voith Industrial Services is one of the four business divisions of Voith Group. As a leading global industrial service provider, Voith Industrial Services is committed to providing a full range of industrial technical services for key industries such as automotive, energy, chemicals and petrochemicals. In 2014 Voith Industrial Services had global sales of 1.18 billion euros and nearly 18,500 employees in more than 170 locations around the world.

About Voith Group

Voith establishes industry standards for energy, oil and gas, paper, raw materials, and transportation and public transportation. Founded in 1867, the Voith Group has more than 39,000 employees in more than 50 countries and annual sales of 5.3 billion euros. It is one of the largest family-owned companies in Europe.

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