German heating firm opens R&D site in Wuxi

By launching a brand new Asia-Pacific research and development and manufacturing site in Wuxi, East China's Jiangsu province, German heating unit manufacturer Vaillant is demonstrating its commitment of "in China, for the world".

The newly launched base is the only R&D and manufacturing site of Vaillant outside Europe, mainly producing core categories such as wall-hung boilers and water heaters. The site has become a strategic node for Vaillant's global supply chain, as products manufactured there are not only prepared for the local market, but for over 10 countries such as Italy, France and Germany.

"The manufacturing base is far from a factory, but instead a comprehensive platform encompassing R&D, testing and manufacturing. This is Vaillant's core innovation hub in the Asia-Pacific region," said Liangya Cheng, industrial Asia director at Vaillant Group.

"The new manufacturing base demonstrates the efficient transformation of R&D achievements to high-quality products, which are stably delivered to clients from China and even the rest of the world," Cheng said.

In 2007, Vaillant's first factory in China was put into operation in Wuxi, marking a critical step in localized manufacturing. With the rapid expansion of China's heating market, the company has been constantly investing in the Chinese market, and the latest launched R&D and manufacturing site is a new milestone.

According to the company, being Vaillant's largest industrial base in Asia, the manufacturing base in Wuxi takes up over 64,000 square meters, and is equipped with a professional test center of 5,700 sq m. The manufacturing base continues the strict standards of German precision craftsmanship, combining with localized innovation, and is dedicated to the R&D of reliable, efficient, comfortable home products and solutions.

Cheng said: "Using German techniques and the Chinese supply chain, we are capable of supplying both the Chinese and European markets. For example, our heaters manufactured in Wuxi are exported to Italy, Germany, France and Belgium. This is a win-win for our 'in China, for the world' pattern."

Jeroen Sterel, director of Asia-Pacific Region at Vaillant Group, said, "Integrating German precision craftsmanship with Chinese innovation speed, we are constantly pushed to evolve, marching on based on market changes."

Wang Peng, an associate research fellow at the Beijing Academy of Social Sciences, said an increasing number of multinational corporations choose to build R&D and manufacturing centers locally as this enables the company to quickly tap into market dynamics and precisely meet consumer demand.

Sterel said: "Our investment into the Chinese market is long-term, serious and unswerving, as is demonstrated by the newly launched manufacturing base in Wuxi. Vaillant has been in the Chinese market for 30 years. Economic cycles have ups and downs, however, no matter what challenges lie ahead, we have strong confidence that we can live through the cycle ..."