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German companies bullish on Shenyang

By WU YONG | China Daily | Updated: 2024-09-13 09:23
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Shenyang, Liaoning province, has provided a sound environment for foreign investment and foreign firms are confident about the city's prospects, said Jan Block, senior manager at aerospace and automotive firm Otto Fuchs Technology (Shenyang) Co Ltd, during a recent cooperation event in Munich, Germany.

With his company having been in Shenyang for years, Block said he is confident about the city's development.

Wang Xinwei, deputy Party secretary of Liaoning and Party secretary of Shenyang, said, "Shenyang and Germany have broad prospects and great potential for cooperation. Shenyang is a city of innovation and openness, with rich culture and livability. We hope to jointly promote industrial development, expand consumer markets, foster scientific and technological innovation and deepen cultural exchanges with Germany."

This event not only demonstrates Shenyang's determination to integrate into the global economy, but also highlights the unlimited potential of the city. Against the backdrop of China fully lifting restrictions on foreign investment in manufacturing, Shenyang is experiencing a new wave of foreign investment.

Block said Otto Fuchs Tech plans to increase investment and open new production lines. This move in part reflects foreign companies' confidence in Shenyang's future development and underscores the city's unique appeal in the new round of opening-up.

Since starting production in Shenyang in 2010, Otto Fuchs Technology (Shenyang) Co Ltd has equipped over 15 million vehicles with parts it has produced. The company's revenue in 2023 reached $88.5 million, four times that of its initial establishment.

As a German enterprise primarily engaged in the research, development, manufacturing and processing of automotive parts such as aluminum alloy chassis, Otto Fuchs's products have entered the supply chains of well-known automakers including Audi, BMW, Mercedes-Benz, Volkswagen and Tesla.

Otto Fuchs's success is not an isolated case. Zhu Ling, director of the Shenyang Municipal Bureau of Commerce, said that as of July, Shenyang had approved the establishment of 207 German-funded enterprises.

Notably, BMW has invested over $13.8 billion in Shenyang. In 2023, Shenyang's import and export volume with Germany reached $4.61 billion, ranking first among the 219 countries and regions trading with Shenyang.

Shenyang, as an important strategic base for BMW Group, has seen the firm's steady growth since its Shenyang plant's establishment in 2003. The BMW Shenyang plant has become one of the largest production bases for the BMW Group globally, contributing one-third of BMW's global car production. On May 8, the 6 millionth BMW car at the Shenyang plant rolled off the production line.

Shenyang serves as a crucial channel connecting Europe, Mongolia, Russia, Japan and South Korea. The city is striving to become a Northeast Asia international metropolitan city. Wang Yan, director and professor of the economics department at Shenyang Academy of Governance, said Shenyang has recently implemented multiple measures in manufacturing, markets and channels to strengthen investment promotion and innovate investment attraction methods.

Looking to the future, Wang said Shenyang will advance a new round of high-standard opening-up with a broader vision, greater courage and more practical measures.

Cao Hailin and Liu Shicheng contributed to this story.
WU YONG in Shenyang

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