Trumpf boosts Chinese operations with €20 million investment

The new JFY facility in Yangzhou, China, offers 19,000 square metres of floor space, making it Trumpfs largest production site yet. (Image: Trumpf)

Laser manufacturer Trumpf has invested €20 million in two new production facilities in China, one of which will be operated by the group’s Chinese branch, Trumpf China, and the other by its subsidiary JFY, a manufacturer of laser, punching, and bending machines.

Trumpf invested €12 million in the new JFY facility, which was opened recently in Yangzhou and is now the group’s largest production site, offering 19,000m2 of floor space. JFY was acquired by Trumpf in 2013 and manufactures several hundred laser-cutting and punching machines every year in addition to 1,000 CNC bending machines. The subsidiary has 771 employees and generates an annual revenue of €86 million.

Construction began towards the end of April on the new site for Trumpf China, an €8 million multipurpose facility. With a workforce of 590 people, Trumpf China has already generated more than 300 million euros in revenue during this fiscal year, primarily through sales of laser cutting machines for sheet metal processing.

Both Trumpf China and JFY produce almost exclusively for Chinese customers.

Although the Trumpf group is fundamentally concerned about the ongoing trade dispute between China and the United States, especially regarding a potential rise in steel prices, the trade quarrel hasn't affected the group’s business in China, according to Heinz-Jürgen Prokop, who oversees Trumpf's business activities in country.

‘Trumpf prioritises consolidating its position in the Chinese market with a strong local presence; we're not shifting development endeavors back to Germany,’ he said at the opening event of the new JFY facility. ‘We will instead tap into the dynamic Chinese market by boosting our commitment to development, production and service on Chinese soil. A lot of people are talking about making an exit from China, but that's not an option for Trumpf.’

Mathias Kammüller, Trumpf managing partner and chief digital officer, also pointed out at the event that JFY and Trumpf China are achieving good rates of growth in automation services and strong growth in machine sales.

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Industry, Cutting