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German metalforming company opens plant in China

Erdrich Umformtechnik Metal Forming Technology (Changzhou) Co., Ltd. celebrated its grand opening in Changzhou National Hi-Tech District (CND) on 8 April.

The new company specializes in manufacturing key automotive parts and components used in steering and suspension systems. Once their designated capacity is reached, the first phase of operations of the new company is expected to generate annual sales exceeding CNY 200 million (USD 117 million).

Founded in Germany more than 50 years ago, family-owned Erdrich Umformtechnik, GmbH which specializes in manufacturing metal parts used in automobile chassis, braking and engine systems, serves complete carmakers including BMW, Benz and VW as well as first-tier suppliers, among them, Bosch, ZF Friedrichshafen and Continental.

In 2012, Erdrich Umformtechnik,GmbH began the process of selecting the location of its manufacturing facilities in China and chose CND after investigating development zones in several cities across China.

The 20,000 square meter factory that will house the first phase of production calls for a total planned investment of USD 60 million, of which USD 26 million has already been deployed. The company will use proprietary precision molds in the stamping process, which is a low-cost and low-energy-consumption approach, in place of traditional casting, forging and other high-energy-consumption processes.