Archive for ‘Manufacturing’

19/04/2015

Foreign automakers double down on China bets despite slowing growth | Reuters

Foreign automakers continue to plough money into factories in China, the world’s largest car market, even as the biggest economic slowdown in a quarter of a century crimps sales growth.

Employees work at the third factory of Dongfeng Peugeot Citroen Automobile company, after its inauguration ceremony, in Wuhan, in this July 2, 2013 file photo.  REUTERS/China Daily/Files

Market leaders Volkswagen AG (VOWG_p.DE) and General Motors (GM.N) show no sign of letting up on their planned investments, while Toyota Motor (7203.T) and Ford Motor (F.N) are also pursuing new China expansion plans.

That’s in spite of the economic slowdown further depressing the car market in January-March, when sales grew only 3.9 percent, compared to 9.2 percent a year ago and way below the 7 percent growth that the China Association of Automobile Manufacturers (CAAM) predicts for this year.

via Foreign automakers double down on China bets despite slowing growth | Reuters.

12/04/2015

Modi’s ‘Make in India’ Gets $2 Billion Vote of Confidence From Airbus – India Real Time – WSJ

On Saturday, Indian Prime Minister Narendra Modi paid a visit to Airbus Group ‘sEADSY +0.49% facilities in Toulouse, France.

He was greeted with a vote of support, from the aerospace company’s CEO, for his Make in India initiative to build up manufacturing in the South Asian country.

Airbus is “ready to manufacture in India, for India and the world,” said Airbus chief Tom Enders. “India already takes a center-stage role in our international activities and we want to even increase its contribution to our products.”

Airbus Group aims to increase its sourcing of aerospace parts from Indian companies to $2 billion in the next five years, the company informed Mr. Modi, as it seeks to diversify its supplier base and tap low-cost suppliers worldwide.

The company’s strategy to ramp up outsourcing from India comes as it competes to secure billions of dollars in deals for military hardware from the country.

India has yet to decide on a joint bid by Airbus and India’s Tata Group to make Airbus’s C295 aircraft, in a contract estimated at about $3 billion. The company is also pursuing separate deals for hundreds of helicopters from the Indian military.

India has already selected Airbus to supply six A330 multirole tanker-transport planes for an estimated $2 billion.

In a presentation to the Indian prime minister on Saturday, the company said it would work with partners in India in areas such as engineering, customer services and pilot training, and to establish centers for the maintenance, repair and overhaul of planes, according to Indian Foreign Ministry spokesman Syed Akbaruddin.

In a statement, Airbus said it aims to produce helicopters, military planes, sensors as well as satellites in India, in partnerships with local firms. The company predicted India would India would require 1,291 new planes over the next two decades. It forecast the Indian air travel market to grow 11% each year through 2025.

via Modi’s ‘Make in India’ Gets $2 Billion Vote of Confidence From Airbus – India Real Time – WSJ.

08/04/2015

Narendra Modi to hard sell ‘Make in India’ at talks with business leaders in Hannover Messe during Germany visit – The Hindu

Prime Minister will inaugurate the Hannover Messe, considered the largest congregation of business tycoons.

Prime Minister Narendra Modi speaks at an event in New Delhi on Wednesday. Photo: V. Sudershan

Prime Minister Narendra Modi will hard sell India as an attractive investment destination while deliberating with movers and shakers of global business at the Hannover Messe during his three-day trip to Germany beginning Sunday, besides holding talks with its top leadership.

In his maiden visit to the European nation as Prime Minister, Mr. Modi will have a packed schedule and wooing investors and projecting his ambitious “Make in India” initiative will be a major focus area.

Mr. Modi will inaugurate the Hannover Messe, considered the largest congregation of business tycoons, along with German Chancellor Angela Merkel. India is the partner country of the fair this year where over 350 Indian enterprises are participating.

“In January, the world came to vibrant India in Gujarat and now exactly three months later, vibrant India is coming to the world in Germany to Hannover Messe,” German Ambassador Michael Steiner told reporters briefing on Mr. Modi’s trip.

Expecting that Mr. Modi’s visit will take the relationship to a “new level”, Mr. Steiner said Chancellor Merkel will come to India in October for the inter-governmental meeting where all major issues will be deliberated at length.

via Narendra Modi to hard sell ‘Make in India’ at talks with business leaders in Hannover Messe during Germany visit – The Hindu.

08/04/2015

Lapsed tenders hurt Modi’s ‘Make in India’ defence industry push | Reuters

Indian firms have spurned some $15 billion worth of government tenders to make a range of weapons since 2013, defence ministry officials say, in a blow to Prime Minister Narendra Modi and his drive to wean the country off imported arms.

Executives cited unrealistic quality demands from a military short of planes, tanks and guns as a key reason for their reluctance to bid for projects. Complicating things further, the military doesn’t want weapons from Indian firms with no track record in defence manufacturing, experts said.

Irked by India’s status as the world’s biggest arms importer, Modi wants to build an advanced defence industry but almost a year into his “Make in India” campaign, which aims to turn the country into a manufacturing powerhouse, not one large domestic weapons project has been awarded.

Tenders for anything from air defence guns to surface-to-air missiles to transport planes have lapsed, defence ministry officials told Reuters. The tenders total around $15 billion according to a Reuters compilation of offers since early 2013.

via Lapsed tenders hurt Modi’s ‘Make in India’ defence industry push | Reuters.

03/04/2015

Toyota to end expansion freeze, invest $1.3 billion in two new Mexico, China plants: sources | Reuters

Japan’s Toyota Motor Corp (7203.T) will spend about 150 billion yen ($1.3 billion) to build two new car plants in Mexico and China, two people familiar with plans said, ending a three-year freeze imposed after unchecked growth lumbered the world’s biggest auto maker with too many idle production lines.

A visitor walks under a logo of Toyota Motor Corp at the company's showroom in Tokyo February 4, 2015. REUTERS/Yuya Shino

Reuters reported in January that plans were in place for new plants in the two countries, awaiting a green light from top management that has now been given. President Akio Toyoda had been cautious about expanding after Toyota was hit by a capacity glut following the global financial crisis.

The new plants will raise Toyota’s annual production capacity by nearly 300,000 cars, the two people said – 200,000 in Mexico and up to 100,000 in China. They declined to be identified because they are not authorized to speak to the media, and said the expansion may be announced formally as early as this month.

The renewed expansion drive by Toyota will put more pressure on rivals such as General Motors Co (GM.N) and Volkswagen AG (VOWG_p.DE), in a global automotive industry still burdened by being able to make more cars than it can sell. The increase in global production capacity of up to 300,000 compares with sales of just over 10 million in 2014.

Immediately after the financial crisis, big carmakers were cautious about adding production capacity. Now, with demand in the United States back at pre-crisis levels and China’s auto market growing, albeit more slowly, expansion is back on the agenda.

via Toyota to end expansion freeze, invest $1.3 billion in two new Mexico, China plants: sources | Reuters.

02/04/2015

Why China May Have the Most Factory Robots in the World by 2017 – China Real Time Report – WSJ

Having devoured many of the world’s factory jobs, China is now handing them over to robots.

China is already the world’s largest market for industrial robots—sales of the machines last year grew 54% from 2013. The nation is expected to have more factory robots than any other country on earth by 2017, according to the German-based International Federation of Robotics.

A perfect storm of economic forces is fueling the trend. Chinese labor costs have soared, undermining the calculus that brought all those jobs to China in the first place, and new robot technology is cheaper and easier to deploy than ever before.

Not to mention that many of China’s fastest-growing industries, such as autos, tend to rely on high levels of automation regardless of where the factories are built.

“We think of them producing cheap widgets,” but that’s not what they’re focused on, says Adams Nager, an economic research analyst at the Information Technology & Innovation Foundation in Washington. Mr. Nager says China is letting low-cost production shift out of the country and is focusing instead on capital-intensive industries such as steel and electronics where automation is a driving force.

via Why China May Have the Most Factory Robots in the World by 2017 – China Real Time Report – WSJ.

26/03/2015

Ford aims to triple exports from India with $1 bln plant | Reuters

Ford Motor Co(F.N) has invested $1 billion in a new plant in western India which will help the automaker triple exports from the country, chief executive Mark Fields told reporters on Thursday.

A Ford logo is seen during preparations for the 2014 LA Auto Show in Los Angeles, California November 18, 2014. REUTERS/Lucy Nicholson/Files

Ford plans to make India an export hub for compact cars such as the EcoSport, a sub-four meter sports utility vehicle, and the newly launched compact sedan, Ford Figo Aspire, the first car to be produced at the new facility.

The new manufacturing facility in Gujarat will nearly double the company’s installed production capacity in the country to 610,000 engines and 440,000 vehicles a year, Fields said at the launch of the new facility.

via Ford aims to triple exports from India with $1 bln plant | Reuters.

14/02/2015

Modi’s ‘Make in India’ gets GE boost – The Hindu

Prime Minister Narendra Modi on Saturday inaugurated American multinational General Electric’s (GE) first manufacturing plant in India that will manufacture a range of diversified products for sectors such as energy, aviation, oil & gas transportation.

Prime Minister Narendra Modi speaks at the inauguration of General Electric's multi-modal manufacturing facility at Chakan, Pune on Saturday.

This multi-modal facility will support GE’s global operations as well as cater to the growing demand from the Indian market.

To support Mr. Modi’s ‘Make in India’ initiative, GE Vice-Chairman John Rice announced the second phase expansion of this unit by saying that it was a testimony of GE’s commitment for the Indian market.

Mr. Modi assured global investors that the government’s reforms push will continue and one can expect predictability in government policies.

Thanking GE for committing additional investment in India, Mr. Modi said: “This will give a boost to the ‘Make in India’ initiative. I welcome all global investors to invest in India and I am assuring you that your products manufactured here will be globally competitive.”

He also urged GE to participate in the defence production programmes of the government as well as that of modernisation of Indian railway.

via Modi’s ‘Make in India’ gets GE boost – The Hindu.

12/02/2015

High-speed trains steer to overseas destinations[1]- Chinadaily.com.cn

Chinese high-speed train companies are eyeing more contracts in overseas markets.

High-speed trains steer to overseas destinations

“The US will be the next strategic focus for us, after successfully winning the Boston contract,” Yu Weiping, vice-president of China CNR Corp, told China Daily on Wednesday.

CNR won a 4.12 billion yuan ($659 million) contract last year to supply metro cars to Boston’s subway system, the first US rolling stock order with a Chinese company.

“At least part of the metro cars will be assembled locally,” said Yu, who is in charge of the company’s overseas business. The company is exploring more opportunities in cities such as New York and Washington.

CNR also won a contract last year to supply 232 diesel locomotives to South Africa. Yu said the company will establish local manufacturing companies and create jobs for local employees.

Li Wen, deputy general manager of the corporate business department at the Export-Import Bank of China, said on Wednesday that the bank is involved in promoting a group of important railway projects, including a high-speed train project in California. Li said at the end of January that the bank had provided $13 billion in loans to 35 overseas railway equipment export and rail construction projects.

CNR and CSR, China’s major high-speed train manufacturer, have announced a plan to merge to become the world’s largest train manufacturer. Shareholders will vote on the move on March 9.

via High-speed trains steer to overseas destinations[1]- Chinadaily.com.cn.

31/01/2015

Panasonic withdraws from TV production in China: source | Reuters

As we said with the reduction of workforce at Foxconn, this could be the beginning of the end to off-shored manufacturing.  Time will tell if we’re right or not.

Panasonic Corp (6752.T) has stopped making TVs in China and plans to liquidate its joint venture in Shandong, a company source said on Saturday, the latest in a string of Japanese electronics companies exiting overseas TV markets amid strong pricing pressure.

Exhibitors prepare the Panasonic exhibit space ahead of the International Consumer Electronics show (CES) in Las Vegas, Nevada January 5, 2015. The show officially opens on January 6. REUTERS/Rick Wilking (UNITED STATES - Tags: BUSINESS SCIENCE TECHNOLOGY)

The source, who did not want to be identified because the move had not yet been announced to the roughly 300 workers at the Shangdong plant, said Panasonic ended production there on Friday.

The Nikkei earlier reported that Panasonic would withdraw from TV production in China and Mexico. The report said the company was expected to sell the Mexican plant, which has produced about 500,000 units a year, most of which were shipped to the United States.

Reuters could not confirm the company’s plans to exit Mexico. It currently has two plants in that country, part of the company’s nine TV manufacturing plants, excluding Shangdong.

A fierce price war has made the global TV market unprofitable for many Japanese electronics makers. Panasonic said in late October it was transferring its unprofitable Sanyo television unit in the U.S., which supplies sets to Wal-Mart Stores, to Funai Electric (6839.T) in return for royalties.

Toshiba Corp (6502.T) said on Thursday that it would stop making and selling TVs in North America and was considering similar exits from other countries.

Sharp Corp (6753.T) has licensed its TV brand in Europe to Universal Media Corp Slovakia as part of an effort to trim costs and pull back from loss-making operations. Sony Corp (6758.T) has spun off its struggling TV business into a separate entity, although CEO Kazuo Hirai has said the company does not plan to sell or shut down the unit.”

via Panasonic withdraws from TV production in China: source | Reuters.

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