Voith in China
Strong Partners for More Than 100 Years

Voith-CEO Lienhard, German Chancellor Merkel and leading representatives from the German business have arrived for talks in China.

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Voith in China
Strong Partners for More Than 100 Years

Voith-CEO Lienhard, German Chancellor Merkel and leading representatives from the German business have arrived for talks in China.

All Topics

Voith in China
Strong Partners for More Than 100 Years

Voith-CEO Lienhard, German Chancellor Merkel and leading representatives from the German business have arrived for talks in China.

All Topics

Voith in China
Strong Partners for More Than 100 Years

German Chancellor Dr. Angela Merkel has arrived in China with a delegation of leading representatives from the German business community for talks with the Chinese government and entrepreneurs on financial and trade issues and the subject of innovation. Dr. Hubert Lienhard, President and CEO of Voith GmbH & Co. KGaA and Chairman of the Asia-Pacific Committee of German Business, is accompanying the Chancellor on her trip to China.

Voith and Huatai Paper enter strategic partnership agreement

Voith signed a strategic partnership agreement with Shandong Huatai Paper Co., Ltd., one of the largest paper manufacturers in China.

Voith in China – A tradition of success

Voith has operated in China for more than 100 years. We were awarded the first major order for hydraulic turbines back in 1906. Today we are a strong and dependable partner to our Chinese customers – whether for turbines and generators for hydropower plants, components for China's high-speed trains or efficient paper machines.

"German and Chinese companies have shared a strong partnership for years. The intensity of this partnership is reflected in the regular visits between our two heads of government."

Dr. Hubert Lienhard
President and CEO of Voith GmbH & Co. KGaA.

On the ground – since 1906

1906

Voith is awarded its first major order from China in 1906: Just four years later, Voith supplies turbines for China's first hydropower plant in Shi Long Ba (Yunnan Province).

1937

The first Voith paper machine in China is put into operation at Minfeng Paper near Shanghai.

1965

Voith supplies the first turbo couplings for Chinese rail vehicles.

1994

Voith lays the foundation for the production of turbines and generators in China together with Siemens and its Chinese partner SEMMW.

1996

Voith Paper Fabrics sets up a production plant in Kunshan. Located around 70 km northwest of Shanghai, Kunshan is the center of Voith's activities for the Asian paper market nowadays.

1997

Voith supplies turbines and generators for China's Three Gorges Dam, the world's largest hydropower plant to date.

2007

Voith Paper pools and expands its paper activities in China: Voith Paper City Kunshan, which officially opened in 2010, has since become one of the Group’s trend-setting locations in terms of efficient processes, lean production and sustainability.

2010

The Hainan PM 2, the world's largest paper machine with the capability of producing 1,600,000 tons of paper a year, is put into operation.

February 2013

Dr. Hubert Lienhard takes over as Chairman of the Asia-Pacific Committee of German Business (APA). The APA represents the German business community in Asia vis-à-vis policymakers in Germany and Asian partner countries and is committed to fostering strong economic ties between Germany and Asia.

April 2014

Sigmar Gabriel, German Federal Minister for Economic Affairs, opens the Voith China Training Center in Kunshan. This center, which is based on Germany's proven dual-training model, enables Voith to train the experts the company needs specifically to be successful in the Chinese market.

November 2014

Voith Hydro Shanghai celebrates its 20th anniversary.

June 2015

The first 19 experts successfully complete their technical training at the China Training Center.

Strong roots – on the path to becoming a Chinese company

Every order and successful project we handle in China strengthens our position in the Chinese market. In China, we want Voith to be perceived as a Chinese company with German roots. We're making good progress in that. And are working constantly day by day to achieve that goal. With products that are developed and made on site. By local employees, who are proven experts in their profession, have a precise knowledge of their markets and are intimately familiar with the customs and practices of their country.

"Our declared objective in China is to become a Chinese company with German roots."

Dr. Hubert Lienhard
President and CEO of Voith GmbH & Co. KGaA

Voith in China

Bigger, faster, China …

One of the world's largest hydropower markets, attractive sales opportunities for drive components for rail and commercial vehicles, one of the key markets for paper activities – China offers exciting prospects for Voith. And may turn into Voith's most important single market in the medium term. And in the recent past as well, we were able to secure many interesting orders and were involved in exciting projects. Here is a selection:

Highlights

September 2015

Voith Industrial Services has won a new contract with ZF in Nanjing being responsible for parts cleaning in the workshop and cleaning activities in the periphery of traffic areas. Voith is also in charge of technical cleaning and building cleaning.

June 2014

Continuation of a successful partnership: Sun Paper, one of Asia's major paper manufacturers, commissions Voith to construct three machines for making packaging paper and graphic paper.

March 2014

Voith invests 25 million euros in building a factory for rail vehicle components in Shanghai. Voith expects to put it into operation it in 2016.

August 2013

Voith puts the most powerful generator-turbine unit in its history into operation at the Chinese hydropower plant Xiluodu on the Jinsha River.

January 2013

Voith is awarded the contract to modernize two 50-megawatt turbines and other components at the Chinese hydropower plant Sanmenxia.

June 2012

Voith equips trams in Shenyang with electric drive systems that have power storage units. A unique feature: Special power storage units mean short trips can be made without the need for an overhead line.

2012

Voith Paper captures five major orders for packaging paper machines in China worth a total of 400 million euros in fiscal year 2011/2012.

"China could become Voith's most important
single market in the medium term"

Dr. Hubert Lienhard, President and CEO of Voith GmbH & Co. KGaA, about the company's commitment in China and future challenges there.

1. Dr. Lienhard, why such a strong commitment in China?
Hubert Lienhard: Because the Chinese market offers Voith great opportunities and no internationally successful company can afford not to have a presence there. Even though economic growth is weakening a little when you compare it with previous rates of growth, the Chinese market still offers a great deal of prospects and will still grow faster than "mature" markets, such as in Europe or South America.

2. What is Voith's strategy for China?
We've been successful in the high-end market for many years. Now we have to move into the medium-size segment and take a leading role in it as a technology provider and offer the right products for our customers there. If you miss the boat in this arena, you'll pretty soon become a regional vendor for shrinking niche markets in the old world, simply because of the sheer size of the market in China. We therefore need to do all we can to make inroads in the medium-size segment and, to achieve that, expand our presence in China further.

3. Doesn't that automatically mean relocating capacities?
It's not just about simply shifting production to China so as to produce more cheaply there. Instead, we need to offer and make products tailored precisely to local needs and which markets and customers demand for a specific market segment. We have to position ourselves on the ground successfully in the face of strong competition from local players.

4. What are your most recent projects in China?
We've invested a total of 217 million euros in China in the past five years. Three outstanding examples of our commitment: We've invested strongly in Kunshan Paper City and expanded it into a center for our paper activities. We opened our Kunshan Training Center last year. We train experts there using the German dual-training model. We're also investing 25 million euros in a new factory for rail vehicle components, which we aim to put into operation in 2016.