On 22 November 2023, LAPP opened its second plant in China in Lingang Diamond Park near Shanghai. The celebrations marked not only this occasion, but also 20 years of LAPP in China. CEO Matthias Lapp and LAPP China’s Managing Director William Wang signed the official opening documents and symbolically cut the opening ribbon. “With this plant opening, LAPP is rounding off two successful decades on the Chinese market,” said Matthias Lapp.
Review: 20 years of LAPP in China
LAPP began its journey in China in 2003 with the opening of its headquarters in Shanghai. “The first step was to gain a foothold in the Chinese market in order to facilitate local sales and establish personal proximity to customers,” explains William Wang. The first production facility followed in 2012 in order to be able to supply local customers more quickly and reliably. The local presence enables LAPP to respond better to regional requirements and certifications.
Strategic expansion: New plant in Lingang Diamond Park
China is one of the largest growth markets in the world. “Accordingly, the demand for new connection solutions is also increasing,” says William Wang. The new plant in Lingang will expand LAPP’s production capacity to meet demand in areas such as industrial automation, mechanical engineering, the electrical and automotive industries, communications technology, measurement and control technology, petrochemicals and the energy sector. The site will also be important for research and development to adapt products to market trends and customer needs.
State-of-the-art research and production
Accordingly, the new plant is equipped with modern research laboratories that support core testing processes and enable the development and independent testing of products. “This enables us to ensure that every single product undergoes a series of stringent quality checks and therefore fulfils the necessary quality standards,” says Richard Lee, CEO of the APAC region. The plant serves as a research and development centre for control, signal and data cables and features technologies from the German research and development centre. “And with the new automated cable production line in our factory hall, we want to meet the demand for diverse and customised connection solutions,” adds Lee.
Long-term goals and investments
In the long term, LAPP plans to achieve an annual turnover of over 200 million renminbi yuan (approx. over 25.5 million euros) at the new site. This investment demonstrates LAPP’s commitment to the Chinese market. “We don’t just want to be the nice and reliable international partner for our customers,” says William Wang. “We want to incorporate China’s local culture, needs and innovations into our corporate DNA and be perceived as a partner that understands the customer’s perspective and communicates with them on an equal footing. This is how we want to work successfully with our customers in the long term.”
Future prospects
The new plant in Lingang is just the beginning. Further investments are being planned to further strengthen LAPP’s presence in China and support future developments. Another chapter in the success story of LAPP in China is certain – and so is the next anniversary.