Doosan opens second production plant
Doosan Infracore held a tape cutting ceremony to inaugurate a second production complex in Suzhou in Jiangsu province, China.The plant has been established to cope with surging demand for small sized excavators, and will form one of the company?s two pillars of mass production of excavators in China, along with the Yantai plant in Shandong province, which is focused on the production of mid-to-large-sized equipment.The Suzhou plant, with a total floor space of 24,000 sq m, has been completed with combined investment of $659 billion since 2007, including invest?ments by Doosan Infracore?s Chinese affiliates DICI (25 percent) and DICC (75 percent). The plant, which has the capacity to roll out 9,800 excavators per annum, will produce small-sized excavators weighing eight tonne or less.Doosan Infracore plans to push for phase 2 expansion of the plant by 2015 through its Chinese subsidiary, and increa?se the output there to up to 13,600 units per year. Doosan Infracore has constructed its second production base in China in order to cope with surging demand in the Chinese small excavator market, step up sales in southern China regions, and secure price compe?titiveness by cutting logistics costs and production costs.The Chinese small-sized exca?vator market has posted annual average growth of 34 per cent over the past five years, accounting for 34 percent of China?s excavator market in 2010. Indeed, the Chinese excavator market is expected to post an annual growth rate of about 10 percent in the coming years due to Beijing?s urbanisation policy and new rural development policy.