German Machine Tool Industry Increases Investment Productivity in China

A few days ago, Gerhard Hein, head of the Economics and Statistics Division of the German Machine Tool Manufacturers Association, said in an interview that China's economic development has provided many opportunities for the development of German machine tool manufacturers.

Although the minimum wage level in China has risen, Hein said that investment in China is not entirely due to low-cost reasons. Rather, it focuses on the performance of the market and the continuous implementation of regional project strategies.

The large industrial orders and projects produced by the German machine tool industry in China are mainly concentrated in Beijing. The automobile and auto parts industries are the main production areas in Shanghai and Nanjing. The machine tool and mold manufacturing are mainly concentrated in Guangdong Province. Other investment determinants include the customer structure and whether the industrial park offers favorable investment measures.

In order to better serve the member companies that are investing in China, the German Federation of Machinery and Equipment Manufacturers/Machine Tool Manufacturers has offices in Beijing and Shanghai. Currently, 60 German member companies are engaged in the production of laser technology for machine tools, processing systems, and metal processing in China. Component suppliers are involved in operations, services, procurement, and the addition of services in the production and assembly process.

In 2010, machine tools manufactured in China accounted for about 8% of German machine tool manufacturers' overseas production, and the number of employees accounted for 12% of overseas personnel.

The number of German companies currently setting up factories in China has increased significantly, especially increasing local production. Hein believes that China is the winner of the world crisis and has made great contributions to the transfer of machine tool consumption to Asia. It is estimated that in 2015 China's machine tool consumption will reach 45% of the global total.

In 2010, the world's machine tool world consumption value was 45 billion euros. Among the top five consumer countries, China had 15.9 billion euros, a growth rate of 47%, and only 6% in 2009, accounting for 35.3% of global machine tool consumption.