At the heart of China’s car industry
GF set up a local production site in Shenyang to be close to key customers of GF Casting Solutions. But the new facility has much more to offer than just its proximity to China’s automotive hub.
Shenyang is a hub of modern manufacturing, especially for the auto industry. According to the municipal government, the city aims to boost the annual production of cars to 1.5 million by the end of 2023, more than 20% of which are going to be cars with alternative drives. Three of GF’s key customers – BMW, Volvo and Hongqi – have plants in or close to the city. In addition, there are many more carmakers in the nearby northeast region, such as Volkswagen, Audi, Beijing Benz and FAW.
Shenyang (China)
Population: 7.2 million (approx.)
Economy: primarily chemicals, high-tech, vehicle and mechanical engineering
Landmarks: Shenyang Imperial Palace, Qing Dynasty mausoleums The Shengjing Grand Theater
That’s why GF Casting Solutions has chosen Shenyang as the location for its third and newest production site in China. GF’s current sites are both in Jiangsu province (Shanghai area) on the east coast, about 1’500 kilometers away. Being closer to a cluster of important customers will effectively cut transportation costs and improve delivery quality. More face-to-face interactions, for example at workshops or other customer events, will also increase business development prospects for GF.
Premium facility for lightweight parts
Although the Shenyang plant was commissioned as early as July 2020, it was not officially inaugurated until April 2023 due to strict COVID-19 measures, which were not suspended until the end of 2022. The huge presence of customers, media representatives and members of the GF Executive Board at the official inauguration event and as part of a China tour that included all the GF sites in the country demonstrates the enormous importance of Chinese production for GF.
Xuefeng Luo
Position: Chief Operating Officer (COO)
Division: GF Casting Solutions
Location: Suzhou (China)
Joined GF (again) in: 2022
The Shenyang plant produces some of the most complex lightweight parts for cars, such as cross members and rear side members, according to Xuefeng Luo, Chief Operating Officer of GF Casting Solutions in China. “We needed a state-of-the-art facility to produce cutting-edge products,” Xuefeng says. And points out that, in addition to first-class equipment, the plant also has strict safety management – through a combination of procedures, equipment and process control. The sophisticated system proves its worth, for example, in the production of magnesium die castings. “The components have excellent strength-to-weight ratios, yet making them also requires particularly precise and safe handling due to the flammable nature of the materials.”
“GF is known to offer valuable training and learning opportunities for career development.”
Xuefeng Luo, Chief Operating Officer at GF Casting Solutions in China
In addition to the high safety standard, the internal logistics are also noteworthy. The new design of the route-planning system effectively reduces the manual labor needed to move things around in the plant. That ensures production to run smoothly. The facility, which spreads over 48’000 square meters and houses about 70 employees, is a highly automated powerhouse – with five automatic die-casting cells currently in use, including a state-of-the-art machine with a clamping force of 4’400 tons. Every year, it can deliver millions of parts for GF customers.
Exemplary systems in place
To Xuefeng, the Shenyang plant is an exemplar of GF’s Strategy 2025, which focuses onintelligent and sustainable solutions, operational excellence, and a performance and learning culture. It not only supplies customers with sustainable products, it also has high environmental standards itself. LEED Silver certification for the buildings is in the final stages. They feature a slew of environmentally friendly systems, including solar panels, rainwater collecting equipment and wastewater treatment systems. With these systems in place, the plant will be soon annually be able to treat 2’000 tons of wastewater, generate 720’000 kWh of solar power, and save 160 tons of rainwater.
The new site is also expected to attract more skilled talent, thanks to its operational excellence and high-standard working conditions which reinforce GF’s reputation in the market. “GF is known to be a workplace that cares deeply about employees and offers valuable training and learning opportunities for career development,” Xuefeng says, who recently rejoined GF after leaving in 2011. He says the company’s culture of performance and learning played a huge role in his decision to return. “I’m very impressed by the fact that GF has always been a leader in this fast-evolving industry, and I believe the culture is an integral part of its success.”
Xuefeng expects the Shenyang team to help further improve GF‘s position in China. “We may see more challenges and uncertainties in the next decade, but I’m very confident that GF will continue to excel in helping our customers succeed.”