Shenyang in northeast China is the capital of the Liaoning province; among others, also a German consulate general is located there. The economy of the metropolis with its more than eight million inhabitants is extremely versatile: chemical industry, manufacturers of machinery and vehicles as well as the high-tech industry. The automobile industry including the settled supplier industry is particularly well represented which gave Wirthwein reason to become active in Shenyang. However, Shenyang has not been entirely unknown for Wirthwein so far since the Wirthwein subsidiary in Kunshan, which was founded in 2007, has already delivered plastic components for the high-speed lines from Shenyang to Dandong. Shenyang is an important junction for traffic in northeast China where several modern high-speed railway lines cross each other.
50 | 50 Joint Venture with Chinese automotive supplier CAIP
The newly founded company Shenyang Wirthwein Technology Co., Ltd. is a joint venture which both partners Wirthwein AG and Changshu Automotive Trim Co., Ltd. (short: CAIP) hold 50 percent shares in. CAIP is quoted on the stock exchange in Shanghai. The former family-run enterprise was founded by Luo Xiaochun in 1992 as a supplier of interior parts for important OEMs. “The founder Luo Xiaochun is the Udo Wirthwein of CAIP, so to speak“, explains Chief Financial Officer Rainer Zepke, which was the reason why the chemistry between both family-run companies has been good from the beginning on.
The CAIP-Group consists of eight Chinese subsidiaries and three further joint ventures, such as with SMP, formerly known as Peguform, or also with a Spanish automotive supplier called Grupo Antolin. The CAIP-Group has been growing strongly in the last years. Sales increased from RMB 1.59bn in 2010 to around RMB 5.11bn in 2017. The group of companies forecasts a turnover of RMB 6.59bn in 2018, which corresponds to around EUR 880m and refers to the entire CAIP-Group including joint ventures.
Shenyang Wirthwein Technology Co., Ltd. invests more than EUR 5m in machines and equipment to start production in May 2019
The development and production of plastic components for the Chinese Automotive Industry is the newly founded company’s business purpose. For the time being the joint venture will start producing window-frame panelings on two injection molding machines with clamping forces of 900t each for a renowned German car manufacturer who founded a joint venture in China for the purpose of car production some time ago. Besides production the newly founded joint venture’s portfolio will of course also include logistics and customer care for technical concerns. The company plans to start series production on 1st May 2019. It plans to equip some 150,000 cars with different variations of window frame panelings every year. The order sales volume amounts to around EUR 15m with a period of validity until 2024.
However – and that makes Wirthwein’s investment even more interesting in northeast China - the region of Shanghai offers further customer potential, which Wirthwein wants to tap together with its Chinese partner CAIP. The joint venture will start in a rented production hall, which offers 2,000 m² production- and storage area. There are options for future enlargements. The facilities are within the ‘Shenyang-EU-Economic Development Zone’. Initially, 20-25 jobs should be created.
Who are the people behind the company?
Both partners of the newly founded joint venture are equally represented in the general management. The Board of Directors of Wirthwein AG consists of three members, Frank and Marcus Wirthwein as well as Rainer Zepke. As regards the partner CAIP, the Board of Directors consists of Mr. Tsang Fan Chao, who is also General Manager of the CAIP-Group, Mrs. Luo Xifang, Deputy General Manager of the CAIP-Group, and Mr. Sun Feng, General Manager on the spot who is responsible for all operative duties of the new company. The totally six members of the Board will take any strategic decisions.
The General Management is in the hands of the two Deputy General Managers, Mr. Liu Nan for CAIP and Mr. Valen Pan for Wirthwein. While Liu Nan will be responsible for the operative plant management on the spot including business areas like production, personnel and quality, Valen Pan will be responsible for purchasing, finances, sales, project management and IT/SAP.
