Shimadzu to double hydraulic equipment output in China to meet forklift truck demand
TOKYO, NNA - A Chinese subsidiary of Japan’s Shimadzu Corp. will build a new plant to double its production of hydraulic gear pumps and control valves for forklift trucks as the growth of e-commerce in China is expected to boost demand for these products.
Tianjin-Shimadzu Hydraulic Equipment Co. will start construction of the plant in November in the Xiqing Economic-Technological Development Area, located in the city of Tianjin, according to a statement on Thursday from Shimadzu, a world leader in analytical and measuring instruments and industrial machinery.
The new plant is scheduled to be completed on a plot of about 24,000 square meters in September 2020 and will have a two-story factory building with a total floor space of about 17,000 sq. meters, the statement said. It will enhance productivity with advanced production technologies and utilize unmanned transport vehicles and robots to promote automation and save labor.
The growth of e-commerce has expanded the distribution of goods in China, helping increase demand for forklift trucks as well as their essential components, hydraulic gear pumps and control valves, the statement said.
With the start of the new plant, Tianjin-Shimadzu Hydraulic Equipment expects its annual output of hydraulic gear pumps to reach 300,000 units in fiscal 2023, double the fiscal 2018 level.
In preparation for the construction project, the parent company increased its investment in the Tianjin subsidiary by $20 million in September 2018, raising its capital to $27.7 million, the statement said. Tianjin-Shimadzu Hydraulic Equipment’s net sales in the year to March 2019 amounted to 109 million yuan ($15.5 million).