German company’s Chinese success story

Over the past 28 years, Flender, a leading global supplier of mechanical drive systems, has flourished in Tianjin, growing from a small workshop with a dozen employees to a sprawling 255,000-square-meter facility with over 2,000 staff.

“The Tianjin factory has become Flender Group’s largest gearbox manufacturing base worldwide,” said Gou Jianhui, chairman of the board and CEO of Flender Ltd, China, at the group’s recent 125th anniversary celebrations, noting that this century-old German enterprise regards China as its “second home”.

Andreas Evertz, CEO of Flender Group, said the company has grown in China from a small unit to become a key part of the company’s global network.

“We have our own development capabilities, sourcing, manufacturing, ascending, and strong sales team to serve the Chinese market. We are very proud of our team and our business in China,” Evertz said.

China’s vast market and a resilient industrial chain have been key to Flender’s rapid growth. Goldwind Technology, one of Flender’s earliest partners in the Chinese wind power industry, has been in cooperation with the company since 1989, according to Li Fei, vice-president of Goldwind Group.

A retired 150 kilowatt Flender gearbox still stands in Goldwind’s Beijing Yizhuang Smart Park, telling the story of Goldwind’s wind power journey and its decadeslong partnership with Flender, Li said.

According to Gou, the company has nurtured numerous suppliers in China, becoming an indispensable part of the industry and supply chains.

As Flender explores the Chinese market, the upgrading of industrial structures and the concentration of innovative resources have facilitated its transformation from a manufacturing company into a research and development-focused enterprise.

Dozens of engineers collaborate online daily with their German counterparts to develop high-quality products. For instance, the newly developed single-stage gearbox significantly reduces power loss and overall machine weight.

In China, Flender has undertaken 10 phases of capital increase and expansion projects, with a total investment of 3 billion yuan ($423.5 million), resulting in an annual output value of 5 billion yuan.

The Tianjin factory has become Flender’s largest and most competitive gearbox manufacturing base outside Germany, serving as the sole R&D hub for mechanical transmission in both China and the Asia-Pacific region, and playing a pivotal role in supplying global customers.
Continuous investment in China has become a vital strategy for German companies like Flender in their pursuit of growth.

According to a report issued by the German Economic Institute, direct investment from Germany in China reached a record high of 11.9 billion euros ($13 billion) in 2023. During the same period, German investment in China accounted for 10.3 percent of Germany’s total overseas investment, the highest level since 2014.

“China’s favorable business environment and comprehensive local services have bolstered Flender’s confidence in its long-term integration into the Chinese economy,” Gou said.

Flender’s success story in China is not an isolated case. The Tianjin Beichen Economic and Technological Development Area, where the company is located, was founded in July 1992 and upgraded to a national economic and technological development zone in 2013.Covering an area of about 50 square kilometers, BEDA is home to more than 10 German-funded enterprises.

“Flender has catalyzed the growth of numerous supply chain enterprises in Beichen, making an irreplaceable contribution to regional development,” said Ni Bin, Party secretary of Beichen district in Tianjin.