Due to the growing global demand for industrial robots, numerous companies have ramped up their production in China. KUKA, a German robotics company now under the Midea Group, has announced plans to build two new factories in the country. By the end of 2019, it aims to increase its production capacity in China by four times the current level. This expansion is driven by rising labor costs and the government’s push toward advanced manufacturing, which has led to a surge in demand for automation solutions. As a result, China is quickly becoming a major hub for industrial robot production.
KUKA recently expanded its operations in China, with a second factory in Shanghai expected to begin operations in January 2018. This facility will boost annual production capacity to 25,000 units, while a new workshop in Guangdong is set to be completed by the end of 2019, increasing total capacity to 50,000 units—four times the current level. Although the exact investment amount hasn't been disclosed, it's estimated to be around 10 billion yen.
Stefan Lampa, CEO of KUKA’s robotics division, emphasized the importance of targeting the automotive and electronics sectors in both Shanghai and Guangdong. The new plants are also expected to support exports to other Asian countries. In addition, KUKA plans to expand its German facilities, which currently produce 40,000 units annually, aiming to surpass 100,000 units globally after 2020.
Following Midea’s acquisition of KUKA in 2017, the company pledged to maintain KUKA’s operational independence until 2023. Lampa noted that Midea’s strong presence in China would help KUKA grow its market share. He also mentioned ongoing discussions about AI collaboration between KUKA and Midea, though he denied any involvement from Midea in daily operations.
According to the International Federation of Robotics, global industrial robot sales are projected to rise by 77% compared to 2016, with China’s market expected to grow nearly threefold. Factors like rising wages, an aging workforce, and government policies promoting smart manufacturing have accelerated the adoption of automation in Chinese factories.
Japanese robot manufacturers are also stepping up their efforts in China. Yaskawa Electric has increased production in its Chinese facilities and partnered with Midea on rehabilitation robots and factory automation systems. Kawasaki Heavy Industries and Fanuc are also expanding their operations in the region. Meanwhile, ABB plans to more than double its global robot production capacity within the next one to two years, with existing facilities in Europe and China.
Despite these efforts, some industry experts believe the gap between Japanese and European companies remains significant. However, as competition intensifies, many predict consolidation in the industry, leading to a few dominant players in the long run.
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