Relocation and expansion of China machine tool factory
- Doubling CNC automatic lathe production capacity for Chinese market -
Citizen Machinery Co., Ltd.
Citizen Machinery Co., Ltd. (Headquarters: Miyota-machi, Kitasaku-gun, Nagano-ken; President: Keiichi Nakajima) will relocate Citizen (China) Precision Machinery Co., Ltd., which is one of the group's major production locations, for expansion, and build a new factory (scheduled for completion in February 2021).
1.Factory relocation and expansion
Although the Chinese market will likely remain stagnant in the short term, it is a market expected to grow in the mid to long term. Demand is increasing for Japanese manufacturers' high value-added machine tools, especially at a time when automation and labor-saving are required amid changes in industry structures due to labor cost increases, etc. The Chinese government is also aiming to upgrade the country's manufacturing industry, highlighting the likelihood of large companies securing major projects.
Against this background, our company has decided to expand the factory, seeing a pressing need for further development and expansion of its production systems in order to ensure stable supply to the Chinese market, which is expected to grow significantly in the future.
As the current factory premises have limited expandability, a nearby land block will be purchased to build a new factory. The new factory's total floor area will be three times that of the existing factory, doubling the production capacity to 350 units per month. In addition to enhancing the production capacity, we will focus on smart manufacturing by improving productivity through the promotion of automated production processes, the introduction of systems to visualize work progress and facility utilization. The showroom space will also be doubled to allow visitors to see actual processing work in progress including test-cutting. The company will also further develop a staff-friendly environment with a gym and a basketball court made available within the factory premises, and two buildings constructed as employee housing.
Along with the new factory construction, the company will promote features such as a wide product lineup (processed object diameters range from ø 1 to 42mm), proprietary processing technology, and IoT solutions to increase sales.
Overview of New Factory
- East of Silk Road, Zhoucun, Zibo, Shandong (3.4km or approx. five minutes by car from current factory)
- Site area
- Total floor area
- 34,200m2 (factory), 7,600m2 (employee housing)
- Completion of construction and start of operations
- February 2021
- Number of employees
- 362 (as of October 2019)
2.About Citizen (China) Precision Machinery Co., Ltd.
Its antecedent company, Citizen Zibo Precision Machinery Co., Ltd., was founded in 2005. Production and processing were expanded over time, from the initial production of electrical cables, to parts processing, and then to control panel production. In July 2008, the production of CNC automatic lathe units began. The company name was changed to Citizen (China) Precision Machinery Co., Ltd. following a merger with Citizen Machinery China Co., Ltd. and Miyano Machinery (Shanghai) Co., Ltd. in April 2011. It has since been engaging in production, sale, and provision of services for products for the Chinese market, with the cumulative number of units produced in the Chinese factory exceeding the 10,000 mark in September 2019.