Trumpf invests €20 million in Chinese operations including JFY subsidiary
Trumpf opened a €12 million production facility for JFY, invested €8 million in Trumpf China
IMAGE. New 19,000 m2 JFY production facility in Yangzhou. (Courtesy Trumpf)
In Yangzhou, Trumpf (Ditzingen, Germany) held a ceremony marking the opening of a new €12 million production facility for its subsidiary, JFY. In addition, Trumpf announced it is investing €8 million in Trumpf China (Taicang), where construction crews broke ground in April for a multipurpose facility for a workforce of 590. High-quality laser cutting machines that process sheet metal are the primary revenue driver for Trumpf China. JFY is positioned in the low to mid-range segment.
Trumpf officials noted that, despite recent debate over trade policy, the company is committed to China. it employs more than 1300 people at the two sites, which together generated 404 million in annual revenue. Both companies produce almost exclusively for Chinese customers. During this past fiscal year, China was the third-largest market worldwide--surpassed only by Germany (€622 million) and the United States (€421 million).
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The JFY production site is now the Trumpf Group’s largest production site worldwide, comprising about 19,000 m2 of floor space. JFY's 771 employees manufacture primarily laser, punching, and bending machines. Its annual production output of over 1000 CNC bending machines makes JFY the market leader in China. The company also produces more bending machines than the entire Trumpf Group. JFY, acquired by Trumpf in 2013, also manufactures several hundred laser-cutting and punching machines every year. It recently generated €86 million in annual revenue.
"We're fundamentally concerned about the ongoing trade dispute between China and the United States, especially when it comes to a potential rise in steel prices. But this trade quarrel hasn't affected our business in China," said Heinz-Jürgen Prokop, who oversees Trumpf’s business activities in China. "Trumpf prioritizes consolidating its position in the Chinese market with a strong local presence; we're not shifting development endeavors back to Germany. We will instead tap into the dynamic Chinese market by boosting our commitment to development, production, and service on Chinese soil. A lot of people are talking about making an exit from China, but that's not an option for Trumpf. We're doing exactly the opposite!"