Diehl Controls is starting production of electronic systems at its second plant in China. Among other things, the investment is intended to increase sales to more than two billion RMB by 2026.
"For our strategy until 2026, the new plant in Qingdao as well as the partnership with the Haier Group are of central importance to achieve our ambitious growth targets in China," says Carsten Wolff, president of the corporate division board of Diehl Controls
Second plant in the Middle Kingdom
In the Huangdao district, which is part of the eastern Chinese metropolis of Qingdao with its ten million inhabitants, Diehl Controls opened its new plant on September 18, 2023. The event was attended by Diehl Group CEO Dr. Klaus Richter and Diehl Controls CEO Carsten Wolff, as well as Haier Group Vice President Liang Haishan, CPC Qingdao Municipal Committee Standing Committee Member Sun Yonghong, and other high-ranking representatives from industry, government and Diehl Controls. In total, the technology company from Wangen, Germany, which is part of the globally operating Diehl Group, is investing more than 23 million euros in the new Diehl Controls Qingdao (DCQD) subsidiary. DCQD is the second production site in China after DCNJ (Diehl Controls Nanjing) and thus an important milestone for the growth strategy in the Middle Kingdom. Diehl Controls is already the Chinese market leader for electronic control and system panels for front-loading washing machines.
Expansion of partnership with Haier
One of the key customers in China is the Haier Group, with which Diehl Controls has been successfully cooperating for more than 20 years. Worldwide, the Haier Group is Diehl Controls' second largest customer. The Chinese group generated more than 240 billion RMB in 2022 - around 30 billion euros. Founded in 1984, the Haier Group is now one of the world's leading manufacturers of household appliances with around 70,000 employees. The company is headquartered in Qingdao, exactly where DCQD is located: The plant is just 500 meters from Haier's largest production facility for washing machines as well as the new factory for water heaters. In Qingdao, DCQD has two buildings with a total area of 13,000 square meters - around 6,000 of which is production space, 4,000 is office and laboratory space, and 3,000 square meters is warehouse space.
Five million electronic systems per year
Once the plant reaches full capacity, DCQD will manufacture around five million electronic systems per year - including HMI solutions with technologies such as touchscreen or gesture control. The HMI solutions are not only intended for classic white goods, but are also used in heating and cooling appliances and water heaters. Diehl Controls is a full development partner of the Haier Group and, in addition to electronics manufacturing, also handles the logistics for delivery. Thus, a sustainable and cost-efficient logistics for a total of eight Haier plants is realized via reusable packaging and the so-called milkrun concept. In addition, a lean organization in administration and operations management ensures low and thus competitive overall costs. DCNJ in Nanjing provides a functioning management for the new Diehl Controls plant and takes over the management function for DCQD to enable a fast ramp-up of production including delivery.
