Wacker Neuson plans new facility in China

Wacker Neuson plans to establish a Chinese manufacturing plant but has not yet decided when to build the plant.

Martin Lehner, the company's chief technical officer, said that the decision to build a Chinese factory had been made; "We will certainly have a production facility in China - it's a matter of when, not if." Wacker Neuson is also considering a facility in Latin America.

He said that the initial focus for the China plant would be light equipment - the company's range includes compaction and concreting equipment - with compact machines (excavators and wheeled loaders) to follow.

The planned facility will help Wacker Neuson reduce its reliance on Europe, where 71% of its revenues were generated last year. Just 3% of sales originated in Asia Pacific in 2011.

Mr Lehner made his remarks during a press conference in Austria to mark the opening of the company's new compact equipment factory in Hörsching, close to Linz.

The facility represents an investment of €65 million, the largest single investment yet by Wacker Neuson. It will produce wheeled and tracked excavators, dumpers and skid steer losd, with an annual production capacity of 15000 units.

The factory will also manufacture mini exacators for Caterpillar under the joint venture between the two companies.

Wacker Neuson has now invested around €200 million in production and office facilities since 2007. It has eight production sites worldwide, including new plants in the US (the Norton Shores location for heaters and lighting towers opened in 2008) and a light equipment facility in the Phillipines, built in 2007.