Georg Fischer to build iron foundry in China

These investments in cast iron will be spread over the next three years. Along with additional investments to expand capacity at GF Piping Systems, the Corporation's investment volume in 2007 will climb to CHF 180-190 million.

The plant of the newly founded Georg Fischer Automotive (Kunshan) Co. Ltd. is being built on property in the Kunshan Economic & Technical Development Zone and is suitable for modular expansion. It is located around 30 km away from Georg Fischer's light metal foundry in Suzhou and enjoys all relevant facilities such as secure energy supply, good connections and trained personnel. The proximity to the Suzhou site generates synergies.

The automotive industry is one of the main growth drivers of China's economy. The tougher regulations governing exhaust gases and fuel consumption are prompting local carmakers to opt for state-of-the-art technology, and demand for safety components such as steering knuckles, wheel carriers and transverse rods made of spheroidal graphite is buoyant. The local commercial vehicle industry will also see steadily growing demand for highly stressable components made from high-quality cast iron.

The Georg Fischer Corporation currently has a total of 1,500 employees in all three Corporate Groups in China, where it generated sales revenue of some CHF 300 million in 2006.