The rapidly growing Chinese economy has boosted demand for heat exchangers in China. To meet increasing customer needs, SWEP is opening its new production plant in Suzhou by the end of 2007. According to Håkan Nilsson, General Manager, SWEP Asian Operations, the new factory will definitely help grow SWEP’s customer base, and is a sign of the company’s commitment to all its present customers in China.

 

The first move towards more China-based SWEP operations was taken in 2006, with the establishment of a local trading company just outside Shanghai that enabled SWEP to import and export heat exchangers. “Having a trading company properly established in China means we can trade in the local currency, the Renminbi Yuan,” Nilsson says. “This both simplifies and accelerates business dealings with our local customers.” SWEP has invested US$5 million in a press line, test line and furnace for the 4,000-square meter building in Suzhou Industrial Park. According to the company’s press release, the plant will make products in the medium and large ranges on the 1,000-ton press-line, which also will supply components to SWEP’s plant in Kuala Lumpur.

Ong Chin Shuan, General Manager Suzhou Plant, points out that the plant location is ideal for SWEP, because Suzhou is situated just outside Shanghai with excellent access to a pan-China distribution network. “We have access to ports and other good transport links to the rest of China,” he says. “And Suzhou is one of China’s premier industrial parks. It’s very well managed and fits our needs perfectly.” SWEP’s General Manager concludes: “Our ultimate aim is to bring the Central Chinese Warehouse (CCW) to the same level as the highly successful Central European Warehouse (CEW). The combination of a Chinese factory with the CCW will give us a massive competitive advantage and enable us to achieve our full potential in China, with better service to customers.”