Kennametal Inc. announced August 10 the official opening of its new Tianjin, China, manufacturing facility less than a year after the company first announced groundbreaking for the operation. Located in the Tianjin Economic Development Area (TEDA), the facility, initially sized at 160,000 square feet, will employ some 200 people in manufacturing and advanced engineering and design activities. The operation could grow to 450,000 square feet and employment could reach 400 people. The $31 million invested in this plant is in addition to the approximately $35 million that Kennametal has already invested in its China businesses in other locations. This new capability will enable the company to more effectively serve a rapidly developing Asia Pacific market as well as support Kennametal's global customers with locations in the region.
More than 700 customers, dignitaries and other special guests joined Kennametal employees for the grand opening ceremony, which included plant tours, demonstrations and exhibits.
"The size and importance of this rapidly expanding market demands that we enhance our presence," said Kennametal president and CEO Carlos Cardoso. "Our global and local customers expect us to be there with them, and to serve their needs with world-class products and services. Our presence promotes customer intimacy, shorter lead times, global quality/local availability and positions Kennametal well to succeed in this market."
Kennametal, a U.S.-based global company, now operates sales offices and logistics support in 10 countries across Asia Pacific, including Japan, South Korea, Taiwan, China, Thailand, Malaysia, Singapore, Australia, New Zealand, and India - serving customers in many market segments, including aerospace, heavy industry, electronics, die and mold, mining, construction and vehicles. The company began operations in China in 1991 via a wholly owned subsidiary now named Kennametal Xuzhou Co. Ltd. In the ensuing 15 years, Kennametal has established Kennametal Ltd., a manufacturing plant in Jinqiao Export Processing Zone in Pudong, Shanghai, and completed the purchase of what is now Kennametal Hardpoint Inc. From this combined base, Kennametal will offer world-class products, engineering, design services and training activities to a broad customer base in China.
"The heightening of our presence in China is directly in line with our corporate growth strategy to balance our business geographically. Currently about half our revenues come from outside North America, and we want to grow our business, both organically and through acquisition, to be one-third in North America, one-third in Europe and one-third in these important emerging economies," said Cardoso. "This facility supports our growth inside China through producing our latest products with state-of-the-art equipment and world-class processes. This plant and the strong Kennametal team there form the corner stone of our ambition to become the undisputed market leader in China by the end of this decade."
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