By launching a brand new Asia-Pacific research and development (R&D) and manufacturing site in Wuxi, Jiangsu province, German heating equipment manufacturer Vaillant is demonstrating its commitment to “in China, for the world”. The newly launched base is the only R&D and manufacturing site of Vaillant outside Europe, mainly producing wall-mounted boilers and water heaters. The site has become a strategic node for Vaillant’s global supply chain, as products manufactured there are not only prepared for the local market, but for over 10 countries such as Italy, France and Germany. “The manufacturing base is far from only a factory, but instead a comprehensive platform encompassing R&D, testing and manufacturing. This is Vaillant’s core innovation hub in the Asia-Pacific region,” said Cheng Liangya, Asia Director at Vaillant Group. “The new manufacturing base shows the efficient transformation of R&D into high-quality products, delivered to clients from China and the rest of the world,” Cheng said.
In 2007, Vaillant’s first factory in China was put into operation in Wuxi, marking a critical step in localized manufacturing. With the rapid expansion of China’s heating market, the company has been constantly investing in the Chinese market, and the new R&D and manufacturing site is another milestone. Vaillant’s largest industrial base in Asia, the Wuxi site takes up over 64,000 square meters, and is equipped with a professional test center of 5,700 sq m. Cheng said: “Using German techniques and the Chinese supply chain, we are capable of supplying both the Chinese and European markets. For example, our heaters manufactured in Wuxi are exported to Italy, Germany, France and Belgium. This is a win-win for our ‘in China, for the world’ pattern.” Jeroen Sterel, Director for the Asia-Pacific Region at Vaillant Group, said, “Integrating German precision craftsmanship with Chinese innovation speed, we are constantly pushed to evolve, marching on based on market changes.”
Wang Peng, Associate Research Fellow at the Beijing Academy of Social Sciences, said an increasing number of multinational corporations choose to build R&D and manufacturing centers locally as this enables them to quickly tap into market dynamics and adequately meet consumer demand. Sterel said: “Our investment into the Chinese market is long-term, serious and unswerving, as is demonstrated by the newly-launched manufacturing base in Wuxi. Vaillant has been in the Chinese market for 30 years. Economic cycles have ups and downs, however, no matter what challenges lie ahead, we have strong confidence that we can live through the cycle,” the China Daily reports.
