STIHL starts production at new factory in Qingdao, China

Almost exactly one year after the start of construction work, STIHL has opened its new factory in Qingdao, some 600 kilometers north of Shanghai. In taking this step the STIHL Group has expanded its worldwide production capacity for the entry-level segment. The new buildings were officially opened on 15 September by STIHL Chairman Dr. Bertram Kandziora together with Helmut Lüders from the German embassy, the Vice Governor of Shandong Province, Sun Shou pu, the Secretary of CPC Qingdao Committee, Du Shicheng, and the Mayor of Qingdao, Xia Geng. The new buildings have a total floor area of 22,500 square meters for a brushcutter assembly facility which is designed to supply the world markets. Hedge trimmers and chainsaws are also to be manufactured at the Qingdao facility in the future. It is planned to invest a total of €27 million. Dr. Kandziora said in his speech: “The opening of our new factory is to be another milestone in the success story of the STIHL manufacturing network.”

Uncompromising quality at all manufacturing plants
The STIHL Group began building up an international manufacturing network in the early seventies to achieve market-oriented and cost-efficient production and reduce the risk of currency fluctuations. The move to China is the systematic continuation of the international production strategy. All STIHL sites will benefit from the reduced average production cost since it allows for a broad range of competitive products. STIHL’s traditional high standards of quality are guaranteed in this process – irrespective of the production location. Dr. Kandziora explained: “Production at the new factory is under German management and uses time-proven manufacturing technology. We have thoroughly scrutinized our local Chinese suppliers and chosen those who meet our high quality standards.”

Qingdao offers advantages
STIHL looked at all the relevant criteria in its search for a suitable location in China. When all aspects were considered, Qingdao offered the greatest benefits: excellent access to the harbour, airport and highway, the possibility of gradually expanding the site, and reliable energy supplies. Qingdao is also a very attractive location for the staff. STIHL had quick, unbureaucratic and effective support from the representatives of Qingdao's local government, the Chengyang District, as well as the Qingdao Export Processing Zone.

Voucher copy requested

Caption:

Dr. Bertram Kandziora (center of picture) hands over the first brushcutter assembled in Qingdao to the Vice Governor of Shandong Province, Sun Shou pu (left).

Photograph: STIHL (Reprint free of charge / voucher copy requested)