Eagle flies in

Although China has been a strong market for the wood based panels industry for some years, relatively few western machinery manufacturers have taken the bold step of establishing a manufacturing presence there.

However, the way in which the Chinese market has expanded in more recent years has tempted more European companies to ‘take the plunge’, normally after ‘testing the water’ with a sales operation first.

Wemhöner Surface Technologies, the family business originally founded over 80 years ago in Herford in Germany, started its long relationship with the Chinese market in 1983 with the supply of a short-cycle press for melamine facing wood based panels.

In 2004, it formed a sales company with an office in Beijing.

In July 2006, Wemhöner began construction of its new factory on an industrial development in Changzhou, Jiangsu Province and the official opening was held in July 2007. The outside of the two-storey factory and office building, which covers 3,000m2 and sits in grounds landscaped with grass and trees, shows a distinct European theme, with glass exterior walls to the entire ground floor area, making the interior light and airy. However, the overall concept of the Changzhou operation combines the best of European and Chinese culture and aesthetics. The company firmly believes that its staff will only achieve their optimum ability if they are “continuously motivated with room for creativity and excellent working conditions…..the ideal conditions for producing premium German quality in China,says the company brochure.

The Changzhou facility is Wemhöner’s first factory outside Germany.

Wemhöner (Changzhou) Machinery Manufacturing Co Ltd in Longhutang Town, Changzhou, delivered its first machine, to a customer in Shanghai, in October 2007. It was a 3D Eagle membrane press to be used in the manufacture of kitchen cabinet doors.

“We have since supplied 20 such presses to Chinese customers, plus two to the US, one to Turkey and one to Russia,said area sales manager Dean.

Wemhöner Surface Technologies has over the years supplied over 500 of these 3D presses, making it one of the most successful of the company’s products. It can be used with or without a membrane to press PVC and PET sheets to panel surfaces as well as applying veneer, linoleum, or Kydex thermoplastic sheet.

“October 2007 would seem a difficult time [to enter the market] but we have still been successful,said the sales manager.

In fact, Dean pointed out, Wemhöner (Changzhou) had sold five 3D Eagle and one short-cycle press in China so far this year, at the time of our meeting in late April, and had also sold another 3D Eagle to a customer in Russia, “So things are not as bad as we had predicted they may be back in January,he said.

“For the future, we plan to make other types of presses here as well. We will produce a new short-cycle press this year and we have already started production of a hot press for double-sided veneering, for which we have one order at this time.”

As you would expect, and Dean admitted, price is a bit of a problem in the current economic climate as Wemhöner’s customers, such as a producer of kitchen cabinet doors for example, can only obtain a low price for its own products. “In three to five years’ time, I think it will be a better market but it is slow and very difficult at present. It takes time and while 2008 was rather slow generally, this year has shown improvement due to the government’s injection of money into the economy to stimulate demand.”

The Changzhou company is 100% owned by Wemhöner Surface Technologies of Germany and employees 45 people, including 13 in the offices. It is mainly staffed by Chinese nationals, although there is one German engineer overseeing the mechanical side of things and another for the electrical/electronic area.

It exhibited at the Woodmac China exhibition in Shanghai this February but Dean reported that this biennial show was not a great success this year. The exhibition in Guangzhou in March was better and Dean said it had been quite a success for Wemhöner. The company still managed to sell one 3D Eagle press at each show, anyway.

“Normally, the first three months and the last three months of each year are better for sales for machinery makers in China,said Dean. “May, June and July are not usually so good because the customers are busy making their products. They usually think about buying new machines when their own sales are quieter – such as around February/March, when Chinese New Year falls.”

So Wemhöner has taken that plunge and opened its first factory outside Germany, in China. It is clear there is a market for its products in China as the country is a major producer of furniture, albeit suffering some of the same economic stresses as the rest of the global economy.
However, China’s economy is resilient and is still expected to grow, even if that growth is forecast to be less robust than in recent years of course.