SFS expands its production platform in China to enable future growth

News – 8 July 2021

The SFS Group will expand its production platform in Nantong (China) in order to provide sufficient capacity for future growth. The floor space will increase by approx. 70% to 130.000sqm in total and overall investment will amount to CHF 32 million. The expansion will be commissioned in Autumn 2023.

The production platform located in Nantong (China), north of Shanghai, is the second largest site in the SFS Group and key for its business activities in China. Built in 2018, it is the first site to offer all SFS core technologies under one roof, including cold forming, stamping, machining or extensive surface finishing treatments. The presence of several SFS divisions in Nantong facilitates know-how and technology transfer and helps to gain economies of scale.

High capacity utilization
Earlier than anticipated, the current production and warehouse capacities at the Nantong plant show a high level of utilization. The continued growth of the Electronics division in the areas of mobile devices and lifestyle electronics as well as the increasing demand for production capacities from other divisions, e.g. the Automotive division, are the main drivers for this development. The relocation of the Riveting division's production site from Nansha (China) to Nantong in the first semester 2021 further accelerated this trend. The site in Nansha was sold subsequent to the relocation.

Extension ready by 2023
Floor space will increase by approx. 70% (53.000sqm) to 130.000sqm in total. The construction work is scheduled to start in the first quarter of 2022 and shall be completed within 18 months. Commissioning of the expansion is expected in Autumn 2023. The project includes the purchase of additional land reserves to allow for further expansion. Total investment cost for land and construction of the buildings will amount to approx. CHF 32 million.

Thanks to this extension, SFS will further strengthen its competitive position and be able to provide sufficient capacity to realize attractive projects and future growth in China with local customers.