Hoermann investment set to open the door to green buildings in country

Hoermann KG, one of the world's largest industrial and residential door manufacturers by product categories and production volume, will further expand its manufacturing capacity in China, said Martin Hoermann, its top executive.

The firm will also export its products made in China to more global destinations.

Demand for new buildings in China and the Asia-Pacific region is growing, creating growth opportunities for the sector. Schools, retail stores, high-end factories and public service facilities are increasing. Focus is also sharpening on sustainable development strategies for urbanization, industrialization and service sectors, Hoermann said.

To better meet the demand of Chinese customers, the family-owned German firm started factory operations in Changshu, Jiangsu province, in early November. It is its third factory in China. The facility will seek to provide better-quality products to its Chinese customers. This project represents a total investment of 50 million euros ($55 million).

Hoermann, the fourth-generation owner of Hoermann Group, said this manufacturing facility will enrich the variety of the firm's products sold in China, especially for residential and commercial sectors. The hinged doors can even meet the high chemical and hygienic requirements of the pharmaceutical, electronics, and food and beverage industries.

To create a better user experience, the company installed the latest automated production lines and adopted advanced SAP technology system at its Changshu plant to improve product quality and work efficiency.

Founded in 1935 and supported by over 6,000 employees, Hoermann runs 36 professional plants worldwide and more than 100 sales companies in over 40 countries and regions throughout the world. Its door products are used in manufacturing and public buildings as well as healthcare, logistics, education and residential sectors. The company generated over 1 billion euros in sales revenue globally last year.

Facing fierce market competition, the Steinhagen-headquartered group will provide more tailor-made solutions to customers in eastern and southern China from its Changshu factory. The new plant will also shorten the production cycle and reduce transportation costs for its clients in the Yangtze River Delta and Pearl River Delta.

"It is also a key location for products to be shipped from ports in Shanghai, Jiangsu and Zhejiang to other markets that are participating in the Belt and Road Initiative, such as South Korea, Vietnam, Singapore, Thailand, and Australia," said Hoermann.

He believes that the tangible development of the BRI will create a massive infrastructure and economic engine, thanks to its huge population base, growing demand for infrastructure, and economic dynamism.

"Globalization and the BRI are strong forces linking people and economies through cross-border solutions and supporting the prosperity of communities across the globe," said Hoermann, stressing that improvements in infrastructure, transportation, healthcare, and digital manufacturing will not only bolster the world economy but bring new opportunities for partnerships between domestic and global companies.

The firm entered China in 1998.Since then, it has set up three factories and research centers in Beijing, Tianjin and Changshu. It has 18 subsidiaries and over 100 dealers across the country. Hoermann said the company expects to see double-digit growth in China this year.

In addition to expanding its production volume, the company has further diversified its retail sales channels in China this year. Its authorized dealers opened more than 20 retail stores in the nation's top-and second-tier cities such as Beijing, Tianjin, Shijiazhuang, Taiyuan, Jinan, Xi'an, Hefei and Changchun.

Hoermann said China's ongoing smart city development and consumption upgrade have pushed many of its real estate developers, manufacturers, hotel and logistics business operators, public utility service providers and consumers to either change or upgrade their doors, like those used for fireproof facilities and residential purposes. The firm also makes sliding doors and garage doors.

"We pay more attention to market demand and localization strategies in key markets including China and the United States, in addition to Europe," said Hoermann, outlining the company's ongoing investment in staff training programs to remain competitive.

"Chinese clients regard value-added services as important and we are hoping to bring a comprehensive range of products and ideal solutions to core customers. This will not only bring us more customers but attract more companies and individuals to our brand," he said.

China's rapidly developing 5G technology would also lead to improvements in resource efficiency as well as productivity, and attract foreign direct investment in the long run, said Chai Yongzhi, a researcher at the Chinese Academy of Science and Technology for Development in Beijing.