Siemens has confirmed plans to build a manufacturing and R&D centre for industrial automation products in Chengdu in China’s Sichuan province.
The plant will be organised as a ‘digital factory’ integrating the whole production chain – design, manufacturing, logistics, marketing and sales. The use of IT systems throughout the process is expected to reduce by half the time the finished products take to reach the market.
The R&D centre will be part of the company’s global industrial automation network alongside similar facilities in Germany and the USA. It will focus initially on the local market, contributing to the international business at a later stage.
Siemens hopes to tap China’s western region which is less developed, and enhance R&D capability in the country.
When it opens in 2013 the plant will produce high-end programmable logic controllers to meet local demand, while 30 per cent will be for the export market.
Marc Wucherer, Siemens president for industry sector north east Asia, said setting up of the centre will require a large investment, but company officials declined to reveal the amount.