Within the framework of the international development of the EMAG Group, an entrepreneurial family from China has been won as an investor.
The EMAG Group invests in Asia
11/26/2010 - Oliver Hagenlocher
Asia is the growth market for machine tools and with a share of 60% of the world machine consumption by far the world’s biggest sales region. To expand its presence on this market a big capital increase was carried out by the EMAG Holding. As a consequence, EMAG is not only concerning its technologies, but also concerning its equity base one of the leading German machine tool manufacturers. The money comes from the Chinese company Jiangsu Jinsheng Industry Holding Co., Ltd. which operates in the fields of textile industry and the production of yarn machines. Behind Jinsheng is the entrepreneurial family Pan who has maintained friendly contacts with the entrepreneurial family Heßbrüggen for many years. As a consequence of the capital increase there is a 50% / 50% share in the EMAG Holding GmbH of the families Heßbrüggen and Pan. The management of the EMAG will be kept. This way, all essential decisions will be made as in the past, which guarantees a great deal of continuity. Owing to the engagement of the Pan family, large strategic perspectives for enduring growth are opening up for EMAG. EMAG is a worldwide active manufacturer of specialized machine tools for the production of components in medium to high volume batches. It has always been the priority objective of EMAG to deliver the best manufacturing systems for the production of precise metal components. To live up to this objective in Asia, EMAG now wants to offer simpler manufacturing systems for workpieces as well, but still with high demands on precision.
Future Market Asia
The world market for machine tools has clearly been shifted towards the Asian region, especially to China. In the year 2010 Asia’s share of the global machine tool turnover has been about 60%. Within Asia China is the country with the highest machine tool consumption. Since 2003, EMAG has been successfully operating in China with its own companies and could increase its market presence with setup, sales and services. Together with the Chinese investor Jinsheng activities in Asia will be considerably intensified. On the one hand, EMAG is planning the construction of a production plant on greenfield site in China and on the other hand the development of production machines which are tailored to the particular needs of the Asian market. The development center for machine tools and machining technologies will remain the EMAG Salach Maschinenfabrik GmbH, Baden-Wuerttemberg. Here, the new machine concepts for Asia are being developed, too. A relocation of production capacities has not been planned.
Increase of the competitive capability through local production
China is the most dynamically growing automotive market in the world. German car manufacturers and also the car supply industry have shown local presence with own production plants for years. Due to low wages, now hardly any capital is being invested in automated machines when planning new production lines. As a consequence, it is getting considerably harder to score with easier machines produced in Germany. Furthermore, in the middle of 2009 the customs-free import of machine tools was cancelled by the Chinese government to strengthen Chinese manufacturers. EMAG reacts to this development with a massive expansion of its presence in Asia and will produce machines and manufacturing systems also in China in the future.
The EMAG Group
The EMAG Group delivers worldwide – with about 1,600 employees – machines and manufacturing systems for the machining of chucked, shaft-type and cubic components using numerous machining technologies. Whether turning machines, grinding machines, hobbing machines, laser welding machines or machines on a electro-chemical basis – the EMAG Group offers the optimal manufacturing solution for every customer requirement – for medium to high volume batches.
Enjoying a long tradition, the EMAG Group with its headquarters in Salach can revert to an extensive experience from many subsidiaries united under one umbrella. The EMAG Group offers its customers tailored and innovative manufacturing solutions on the highest level and covers almost the whole technology spectrum concerning the machining of metal components. With its variety of technology centers EMAG has become an important partner in the realization of complete process chains for the production of transmission, engine and chassis components. Flexibility, speed and the proximity to customers guarantee a unique competitive position.
The Jinsheng Group
The Jinsheng Group has been founded in the year 2000 and has its headquarters in Jintan, Jiangsu Province, China. The company has about 1,200 employees and consists of six subsidiary companies. The main fields of activity are the textile industry and the production of yarn machines. Under the name of Saurer (Jintan) Textile Machinery Co. Ltd. Jinsheng produces textile machines together with Saurer.