Recognising the importance of the large Chinese market, HELLER has recently invested in its Changzhou plant, creating the conditions to produce more than 100 machines per year on site. In the presence of local politicians, numerous key customers and the HELLER management, the extension building was officially inaugurated on 16 June 2023.
As far back as the 1950s, HELLER was already looking far beyond its European home market to China. The managing directors at the time made important contacts and began manufacturing machine tools for the local market. This led to several close collaborations with local distributors. The company was poised for growth, so in 2013 the Nürtingen-based machine tool manufacturer set up its own subsidiary in Changzhou, which is located in the centre of the Yangtze Delta. At that time, a 7,000 sqm service and assembly plant was built on a total area of 24,000 square metres.
Since then, business has picked up strongly. In the beginning, mainly with well-known companies in the commercial vehicle industry. Since the beginning of the 2020s, HELLER has also been increasingly winning customers from the sectors of aerospace, mechanical engineering, hydraulics, etc. For several years now, the German company has been producing the universal machines required by these industries locally in Changzhou.
This proved a crucial step because, according to Claude Ballay, General Manager of HELLER China, experience shows very clearly that ‘local for local’ production is becoming increasingly important in the Chinese market. He explains: “Delivery times of three to four months are expected here and we have to be able to meet them reliably. What’s more, our customers understandably expect us to produce much of what we sell here in the country.”
Accordingly, HELLER began building its first machining centres for the so-called regional market four years ago. Local suppliers were contracted and in-house staff trained for assembly and ongoing quality control. The new strategy began to pay off very quickly. In spite of the Covid dip, business in the universal machine market in particular has grown and now accounts for almost half of total sales in China.
New building adds 2,000 square metres
In line with the ‘local for local’ strategy of the Chinese universal machine business, the management of the HELLER Group decided at the end of 2021 to expand the Changzhou plant. Construction began in the spring of 2022, and about a year later the new 2,000 sqm building was completed and inaugurated on 16 June 2023 in the presence of 30 VIP customers, local politicians and the HELLER management.
A colourful opening ceremony was followed by speeches from Mingjun Zhou, Vice Director of the Administrative Committee of Wujin National Hi-Tech Industrial Zone, and Peter Weber, HELLER Managing Director Sales. This was followed by a general tour of the premises, giving the nearly 200 guests an opportunity to see the newly organised production processes.
In the afternoon, a HELLER Open House was held with various interactive presentations and in-depth tours of the plant. Guests also had the opportunity to talk one-on-one with senior managers from the plant and representatives from twelve selected partner companies, who showcased their expertise at their own small stands. For Benedikt Wagner, Vice General Manager of HELLER China, one thing is certain: “The event was a great success. But I am even more excited about the new opportunities we now have.”
Perfect conditions
A total of 9,000 sqm of production floorspace is now available. The expansion has been key in enabling the company to produce a greater volume of machines in an efficient and cost-effective manner. Benedikt Wagner: “The additional floorspace has allowed us to create more assembly stations and to completely reorganise the flow of materials throughout the entire plant.”
Benedikt Wagner and Claude Ballay see themselves well positioned for the future with the new setup. As a result, they are firmly expecting double-digit growth rates in the coming years.
Dual education programme for skilled employees
To succeed, HELLER China not only needs the right space and technical facilities, but also the right people with the right qualifications. The foundation for this is the training programme that has been in place for several years. It is based on the German dual education system and supported by the HELLER headquarters in Nürtingen. In addition, collaboration with the local technical college has been intensified since 2022. Since then, the college has had its own HELLER class, aimed at increasing the number of high-quality applications.
HELLER’s Chinese subsidiary currently employs around 130 people, and the number is growing. “To achieve our future goals, we will probably hire another 40 to 50 skilled workers in the next few years,” Claude Ballay and Benedikt Wagner agree.
