Vaillant Group opens new plant in China

• Production of wall-hung heating appliances 
• Expansion of activities in China and Southeast Asia
  

Remscheid/Wuxi, 24 January 2007 

Vaillant Group today opened a new production plant in the Eastern Chinese city of Wuxi. It is the first such plant of the heating and air-conditioning technology specialists outside Europe. With an initial workforce of about 100, wall-hung gas-fired heating appliances will be produced in Wuxi for the Southeast Asian markets. "The opening of the plant is an element of our global growth strategy," said Vaillant Group Managing Director Claes Göransson at the opening ceremony in Wuxi. "We are producing outside Europe for the first time – in a rapidly growing market with great potential for state-of-the-art, individual heating technology. This means Vaillant Group is further expanding its worldwide leading market position in its core business of wall-hung heating appliances." The investment in the new factory totalled about €10 million. The plant's capacity is designed for annual production of 10,000 appliances, but can if required be increased to about 200,000 units.

With the new production plant Vaillant Group is strengthening its operations in China. Its sales revenue in this market is to be doubled over the next three years. The long-term aim is for the Asian market to account for about one-tenth of total Group sales. In this regard, the focus is above all on China. In financial year 2006, Vaillant Group increased its sales there by about 40 per cent. The Group has already expanded its business in China in recent years by more intensive marketing and sales activities. Today, the Group is present in China with a production plant, sales offices in 16 cities and a total of about 200 employees.

The city of Wuxi has a population of 4.3 million and lies about 130 km/81 miles to the West of Shanghai in Jiangsu Province. In recent years it has developed into an important centre for mechanical engineering and electro-technology. Many multinational companies have production plants in Wuxi.

Contact
Dr Jens Wichtermann
Head of Corporate Communications
Vaillant Group
D-42850 Remscheid
Phone: +49 2191 18-2754
Fax: +49 2191 18-2895
Mobile: +49 175 2951810
jens.wichtermann@vaillant.de
www.vaillant-group.com