TRUMPF China, Main building

Despite recent debate over trade policy, the machine manufacturer and laser specialist TRUMPF is committed to China. The company employs more than 1,300 people at two Chinese sites, which together recently generated 404 million euros in annual revenue. During this past fiscal year, China was the third-largest market worldwide - surpassed only by Germany (622 million euros) and the United States (421 million euros).

JFY, a TRUMPF subsidiary in Yangzhou, held a festive event to open its new production site. Ms. Susanne Lada'a, a representative of Germany's Consulate General in Shanghai, attended the event - as did TRUMPF Managing Partner Mathias Kammüller, who emphasized that the Chinese market is tremendously important to TRUMPF. Heinz-Jürgen Prokop, who oversees TRUMPF's business activities in China, was also at the ceremonial opening. He said: "Our two different brands in China, JFY and TRUMPF, allow us to supply our customers and business partners in the country with products and solutions tailored to different market segments."

TRUMPF has stated that it invested 12 million euros in the new JFY production site - now the Group's largest production site worldwide, comprising some 19,000 square meters of floor space. JFY's 771 employees manufacture primarily laser, punching, and bending machines. Its annual production output of over 1,000 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. This subsidiary recently generated 86 million euros in annual revenue.

"With this in mind, 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 Prokop. "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!"

JFY, New production facility

In addition to opening the new site in Yangzhou, TRUMPF is also investing in its own company in the country: TRUMPF China. Construction crews broke ground in late April for a new multipurpose facility, an eight-million-euro investment. With a workforce of 590 people, TRUMPF China has already generated more than 300 million euros in revenue during this fiscal year. High-quality laser cutting machines that process sheet metal are the company's primary driver of revenue. By contrast, JFY is positioned in the low to mid-range segment. TRUMPF China and JFY both produce almost exclusively for Chinese customers.

Mathias Kammüller, who is also Chief Digital Officer of the TRUMPF Group, pointed out that JFY and TRUMPF China are achieving good rates of growth in automation services and strong growth in machine sales. Kammüller added that TRUMPF can therefore supply its customers with complete, state-of-the-art solu-tions for intelligent manufacturing - inspired by the TRUMPF smart factory that opened in Chicago last fall.

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