15/09/06

Würth Group Is Becoming More Involved in China

In the presence of Chinese Prime Minister Wen Jiabao and Federal Chancellor Dr. Angela Merkel as well as of members of the German federal cabinet, Prof. Reinhold Würth signed a cooperation contract between Chur-based Würth International AG and the Shenyang European Union Development Zone in the Federal Chancellery on Thursday, September 14, 2006.

With this contract it is laid down that the trading firm Würth (Künzelsau) is committed to the building of a Würth Industrial Park including an own power plant in the huge North Chinese city of Shenyang. For the moment, an investment of USD 30 million is estimated for this project which will take up an area of 30 hectares. With this strategic investment Würth plans to create production plants which will be extended gradually. It is intended to step up the number of employees from 400 at first to 3,000 at the end of the extension process.

During the subsequent dinner in the Würth Haus Berlin, the Würth Group’s representation in the German capital, Prof. Reinhold Würth expressed his contentment with this new cooperation with Shenyang.

“The trading firm Würth has taken another important step towards an own production. Certainly production is more capital-intensive than mere trade but Würth will only be able to secure long-term sales markets in China for itself if it also produces in the country".

Robert Friedmann, Chairman of the Board of Directors of the Würth Group, underlined this statement and combined it with the comment that investing in China does not jeopardize jobs in Germany: “The investment in China is not meant as a means to transfer jobs. Creating the Würth Industrial Park rather helps to open up new markets in China and Southern/Eastern Asia in general. The planned growth of the corporate group in Germany and Europe will not be affected by it".

Qi Song, deputy mayor of the people’s government of the city of Shenyang, was just as convinced of a good and long-lasting cooperation between Würth and Shenyang European Development Zone. “Würth is very welcome in Shenyang – especially since this will act as a signal to other German and European companies. We are sure that both parties will profit by Würth’s investment. Together with Würth we are looking into a bright future".

The growth market China offers the Würth Group further concrete sales opportunities away from the core business with assembly and fixing materials. For example in the field of high-tech products such as CIS thin-layer solar cells of the Würth subsidiary Würth Solar which will open a new production plant for solar cells with an investment volume of € 55 million in the North Württembergian town of Schwäbisch Hall in October 2006.

But at first, the company wants to see to its core business in Shenyang. The production of screws and fixing elements is to be developed until fall 2008. Alois Wimmer, Member of the Board of Management of the Würth Group and responsible for the entire area of screw production, plays a substantial role in this process. He is well acquainted with China’s procurement and sales market and is looking forward to the new task: “Shenyang, we are coming"!