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hOERBIGER VAlVEs:sAfETy On ThE hIGh sEAs Page 14

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VOlKsWAGEn AuTOMATIC TRAnsMIssIOn:MOBIlITy AnD COMfORT fOR ChInA

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ladies and gentlemen,

The People’s Republic of China is one of the most powerful economic nations in the world. At present, the World Bank forecasts a growth rate between 9 and 10 percent. By comparison, growth of 2 to 3 percent is anticipated for the USA, and the eurozone is expected to grow by one to two percent.

HOERBIGER has been active in China since the early 1990s. The year 1997 marked the start of operations of a separate entity, HOERBIGER (Shanghai) Co., Ltd. During the same year, we began to manufacture com-pressor valves for our customers in China in our own production plant.

Manufacturing capacities in Shanghai have undergone several expansions since then. In 2003, HOERBIGER Automation Technology opened its first dedicated production site in Wuxi. HOERBIGER Drive Technology followed in 2006, purchasing a production plant in Taizhou.

Over the past three years, HOERBIGER’s investments in Changzhou to set up new production facilities for the Strategic Business Units Compression Technology and Drive Technology have been significant. Not only had the site in Shanghai reached its capacity limits, the Changzhou location also offers the opportunity of utilizing the logistical advantages of a modern industrial park.

In recognition of our employees, who through their dedicated support and performance have made the impressive evolution of HOERBIGER in China possible, in 2012 we will hold the HOERBIGER Business Meeting—the most important management conference of our Group—in Shanghai.

For this reason, we also dedicate the current issue of HOERBIGER@MOTION to our customers and employees in China.

Whether mobility on land or at sea: China is not only the largest automobile producer internationally, but also one of the leading shipbuilding nations in the world. And HOERBIGER is part of it.

Our cover story reports on the high-performance shipyard industry in the Shanghai region. New oceangoing vessels are launched at nearly weekly intervals. HOERBIGER Valves (Changzhou) Co., Ltd. is a leading supplier of explosion protection valves for these vessels, equipping them with state- of-the-art safety engineering.

I was equally fascinated by the feature about the development of the new Volkswagen transmission plant in Dalian. As a global partner, HOERBIGER supplies the sliding sleeves for Volkswagen transmissions manufactured in China—one of the performance-defining key components of modern man-ual transmissions.

For the third feature, our team of authors visited the machine manufacturer Jiangsu Yawei Stock Co. in Yangzhou. In 2007, we reported in HOERBIGER@MOTION about this leading manufacturer of press brakes. Today, Yawei is accommodated in a new production facility and produces in accordance with state-of-the-art manufacturing standards. All forecasts of 2007 in terms of corporate performance were surpassed.

Yawei is a typical example of many other companies which were able to secure a spot among the world’s best with the support of worldwide tech-nologically leading component manufacturers.

We are proud of partnerships like these. As a result, China will remain one of the most important sales markets for HOERBIGER.

Dr. Martin KomischkeCEO and Chairman of the Executive Board HOERBIGER Holding AG

ChAnGZhOu, PEOPlE’s REPuBlIC Of ChInA [31° 48’ n, 119° 58’ E]

ChAnGZhOu, PEOPlE’s REPuBlIC Of ChInA: The hOERBIGER Group is steadily expanding its presence in the growth region that is Asia. On October 17, 2011, hOERBIGER Drive Technology offi cially opened its new production site in Changzhou. hOERBIGER Drive Technology (Changzhou) Co., ltd. primarily manufactures key components for transmissions and synchronizers for automobile production in China. An important local cooperation partner is Volkswagen Automatic Transmission (Dalian) Co.,ltd. in Dalian. (Page 40)

EDITORIAl

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COnTEnTCOnTEnT IssuE 1/12 IssuE 1/12 IssuE 1/12COnTEnT IssuE 1/12COnTEnTCOnTEnT IssuE 1/12COnTEnT

hOERBIGER VAlVEs (ChAnGZhOu) CO., lTD.:

ThE DRAGOn hAs lEARnT TO sWIM … PAGE 14JIAnGsu yAWEI MAChInE-TOOl CO., lTD.:

yAWEI – ThE nAME sAys IT All PAGE 22VOlKsWAGEn AuTOMATIC TRAnsMIssIOn (DAlIAn) CO., lTD.:

MOBIlITy AnD COMfORT fOR ThE MOsT POPulOus COunTRy PAGE 30

shORTCuTs: hOERBIGER AT ThE AChEMA 2012: RElIABlE. EffICIEnT. POWERful. WE sET sTAnDARDs. // QOROs AuTOMOTIVE CO. lTD.:

fIRsT ORDER fROM ChInA fOR GETRAG DuAl CluTCh TRAnsMIssIOn // hOERBIGER In GERMAny OnE Of ThE TOP EMPlOyERs PAGE 6

hOERBIGER VAlVEs: sAfETy EnGInEERInG fROM ChInA fOR sAfE sAIlInG On All sEAs PAGE 20 hyDRAulIC sysTEMs fROM WuXI:

“DEMAnD ORIGInATEs PRIMARIly In ChInA” PAGE 26 hOERBIGER DRIVE TEChnOlOGy: GERMAn EnGInEERInG MADE In ChInA

PAGE 40 VIVID IMPREssIOns: InTERnshIP In ChInA PAGE 42 shAnGhAI – ThE CITy ThAT REAChEs fOR ThE sTARs PAGE 46

ChAnGZhOu, ChAnGZhOu, PEOPlEPEOPlE’s REPuBlIC Of ChInAs REPuBlIC Of ChInA [31° 48’ n, 119° 58’ E] [31° 48’ n, 119° 58’ E]yAnGZhOu, yAnGZhOu, PEOPlE’s REPuBlIC Of ChInA[32° 23’ n, 119° 26’ E][32° 23’ n, 119° 26’ E]yAnGZhOu, [32° 23’ n, 119° 26’ E]yAnGZhOu,

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hOERBIGER at the AChEMA 2012

At the booth at the ACHEMA HOERBIGER informed about several innovations.

Reliable. Effi cient. Powerful. We set standards. This was hOERBIGER’s motto at the AChEMA 2012 trade show (hall 8.0, D 28) in frankurt am Main, Germany, for showcasing itself once again as an innovation and technology leader in compression and automation technologies.TexT: Ludwig schönefeld · ILLUsTRATION: HOeRBIGeR

T he most important innovation at the HOERBIGER booth this year was the newly developed packings for reciprocat-

ing compressors in the BCD design. Combined with the CP valves developed by HOERBIGER, the innovative packings enable a space-saving design of the compressor cylinders. The com-pressor can be operated at higher rotational speeds. At the same time, its reliability is in-creased and emissions are reduced. As a result, the new packings and BCD rings make an impor-tant contribution to protecting the environment.

Innovative Performance Boost: BCD Packing and RecipCOMThe new HOERBIGER RecipCOM system also featured at the ACHEMA 2012 sets standards in terms of monitoring, protecting and diagnosing reciprocating compressors. Thanks to the entire-ly modular design, the system can be effectively and cost-efficiently tailored to the customers’ requirements.

The reengineered RecipCOM diagnostics soft-ware continually updates the operator as to the condition of the compressor. Changes in the level of performance and efficiency are immediately apparent. Detailed signal recordings and trend computations support decision-making processes as well as the analysis of faults. In the event of irregularities, RecipCOM deactivates the com-pressor within just a few revolutions, preventing severe damage. Even the RecipCOM entry mod-ule offers excellent protection and all the basic functions for monitoring the operation of recipro-cating compressors.

Production Design: Electrohydraulic Valve ActuatorAnother highlight of the ACHEMA was the production version of the electrohydraulic valve actuator for applications prone to explosions. The innovative valve actuator combines the ben-efits of electrical drive technology with the power density and control dynamics of hydraulics. It is

RElIABlE. EffICIEnT. POWERful.WE sET sTAnDARDs.

operated entirely electrically via a simple inter-face, works independently, and requires no external hydraulic lines. Additional benefits are provided by integrated safety functions such as quick action and emergency shut-down, manu-al operation, or the adjustment of the control speeds.

new service Products:upgrade and RevampIn addition to the innovative packings featuring BCD rings, the RecipCOM system, and the elec-trohydraulic valve actuator, HOERBIGER has unveiled the new Upgrade and Revamp service products at the ACHEMA 2012.

Based on proven and innovative key compo-nents and systems, the HOERBIGER Service Team prepares even older compressors for the future. HOERBIGER offers solutions that con-tribute to increasing the service life, optimizing energy costs, and adapting existing equipment to new operating conditions. Modern valves, such as the HOERBIGER CE valve, and control systems, such as the HOERBIGER HydroCOM system, contribute to a lasting and cost-efficient optimization of reciprocating compressors.

HOERBIGER is a global leader in the fields of compression technology, automation technolo-gy, and drive technology. As a partner with an international presence, HOERBIGER supports the oil, gas, and process industries with techno-logically sophisticated key components and ser-vices for compressors, gas-powered engines, and turbomachinery. Powerful, simple, singularly reliable: this value proposition earns HOERBIGER customers wherever liquid media require powerful and reliable con-trol using smart valve actuators.

fIRsT ORDER fROM ChInA fORGETRAG DuAl CluTCh TRAnsMIssIOn

Qoros Automotive Co. ltd.

GETRAG Group, untergruppenbach, Germany, received its fi rst order from China for the 6DCT250 dual clutch transmission, placed by Qoros Automotive Co. ltd. In the future, GETRAG will additionally supply Qoros with six-speed manual transmissions. The synchronizers for both transmissions are made by hOERBIGER—from production operations in Oberstenfeld, Germany, and Changzhou, China. TexT: Ludwig schönefeld · PHOTO: GeTRAG

A s of the beginning of 2013, the transmissions intended for Qoros will be manufactured in GETRAG’s Nanchang plant.

Since its market launch in 2010, the trend of the 6DCT250 has been very positive. The number of transmissions sold is expected to surpass the million unit mark by 2013. The dual clutch transmission was development for use in the mid-range and compact vehicle segments. At present, it is installed in the Renault Mégane and Scénic as well as the Ford Focus and Fiesta.

The 6DCT250 impresses with high shifting comfort, its excellent contribution to minimized carbon dioxide emissions compared to conventional automatic trans-missions, as well as its high flexibility and functionality for hybrid applications.

“We are very excited about this added breakthrough of our dual clutch transmission, which is designed for high volumes. And we are very proud of our product and the positive feedback we have received from the automotive markets. This shows us that our strategy and our investments in dual clutch transmission tech-nology are on track,” said Mihir Kotecha, CEO of GETRAG. “The interest in this product has been immense, and we continue to receive inquiries from all key automotive markets.”

The high demand for the 6DCT250 has strongly im-pacted GETRAG’s production operations which are al-ready in full swing at the Bari location in Italy as well as Irapuato in Mexico. “We anticipate both plants to run at full utilization much sooner than scheduled,” said Kotecha. GETRAG intends to expand the capaci-ties in the existing markets, in addition to the planned production in China.

HOERBIGER Drive Technology supplies GETRAG around the world with the synchro-nizers used in the 6DCT250. “We are excited that, with Qoros, GETRAG gained another cus-tomer for this truly outstanding transmission,” added Dr. Siegmar Schlagau, CEO of the Strate-

gic Business Unit Drive Technology. In the medium term, HOERBIGER will manufacture the synchronizer components for the new GETRAG production opera-tion primarily at the Changzhou location.

Qoros Automotive Co. Ltd., headquartered in Shanghai —www.qorosauto.com—is a 50/50 joint venture founded in December 2007 as Chery Quantum Auto Co. Ltd. between the Chinese automobile manufacturer Chery Automobile Co. Ltd. and Israeli Corporation, one of the most powerful strategic investors in Israel. The objective of the company is to manufacture premi-um vehicles in China for the Chinese market. The first prototypes of Qoros’ future fleet were produced in Oc-tober 2011. A new production plant was constructed in record time in Changshu in Jiangsu Province. The opening ceremony of the new automotive site was held on November 29, 2011.

GETRAG is one of the largest system suppliers for pas-senger car transmission systems worldwide and has approximately 13,500 employees in 22 locations. GETRAG Group develops transmission solutions for the automotive industry. The broad product portfolio includes manual and automatic transmissions as well as dual clutch transmissions.

hOerBIGer is one of 118 com-panies to be distinguished as a top employer in Germany for 2012. a complex evaluation and certification process of the inde-pendent CrF Institute, amster-dam, netherlands, has attested to the excellent working condi-tions that hOerBIGer offers its employees.

The CRF Institute evaluated the following aspects in detail: career development, primary benefits, secondary benefits and working conditions, training and develop-ment, as well as company culture. Only companies that have issued HR guidelines in compliance with the recognized quality standards of the CRF Institute are admitted to the certification process.

The multi-stage certification pro-cess is based on a detailed survey of the participating enterprises. The center of the research re-volves around HR principles and programs and their practical im-plementation. In its evaluation and certification, the CRF Institute re-lies on a point-based assessment system centered on international HR standards. The accolade “Top Employer” is reserved for compa-nies that score a minimum of 60 percent of the total achievable points.

“Being certified as a Top Employer hones our profile as an attractive employer. The distinction moti-vates us to consistently continue down our current track,” said Gerhard Wagner, Head of Corpo-rate Human Resources and a member of the HOERBIGER Exec-utive Board.

hOERBIGER In GERMAny OnE Of ThE TOP EMPlOyERs

The 6DCT250 dual clutch transmission from GETRAG is

equipped with synchronizers from HOERBIGER.

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ChAnGZhOu, PEOPlE’s REPuBlIC Of ChInA: China is about to become the new world shipyard power. In the next few years, it will assume south Korea’s number 1 position. hOERBIGER is a worldwide leading manufacturer of explosion relief valves for diesel ship engines. In order to take part in the growth of the maritime shipping industry in Asia, hOERBIGER built its own explosion relief valve plant in Changzhou, allowing the company to work more closely with the Chinese shipbuilding industry. (Page 14)

ChAnGZhOu, PEOPlEChAnGZhOu, PEOPlE’s REPuBlIC Of ChInA s REPuBlIC Of ChInA s REPuBlIC Of ChInA [31° 48’ n, 119° 58’ E] [31° 48’ n, 119° 58’ E]

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yAnGZhOu, PEOPlEyAnGZhOu, PEOPlE’s REPuBlIC Of ChInA s REPuBlIC Of ChInA s REPuBlIC Of ChInA [32° 23’ n, 119° 26’ E] [32° 23’ n, 119° 26’ E]

yAnGZhOu, PEOPlE’s REPuBlIC Of ChInA: In 2007, a team of HOeRBIGeR@MOTION visited yawei for the fi rst time. Back then, the company, which is located in yangzhou, Jiangsu Province, China, and specialized in machine tools, was manufacturing press brakes in a hall that was more reminiscent of an aging machine factory. five years later, Managing Director Zhibin leng welcomes us in a new, modern commercial building: it is the calling card of an extremely successful machine manufacturer that utilizes China’s greater accessibility to become positioned among the leading players in the world market. (Page 22)

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DAlIAn, PEOPlEDAlIAn, PEOPlE’s REPuBlIC Of ChInA s REPuBlIC Of ChInA s REPuBlIC Of ChInA [39° 2’ n, 121° 46’ E] [39° 2’ n, 121° 46’ E]

DAlIAn, PEOPlE’s REPuBlIC Of ChInA: In August 2008, Volkswagen Group began construction of its newest state-of-the-art transmission plant in the world in Dalian in China’s northeast. Almost 17 months later, in January 2010, series production for the DsG® DQ200 Direct-shift Gearbox started at Volkswagen Automatic Transmission (Dalian) Co., ltd. In 2011, annual production output has already reached 350,000 transmissions, and the second expansion phase for a capacity of approximately 600,000 trans -missions is scheduled for 2012. It was a masterful performance of Volkswagen project management—and a challenge for globally operating suppliers such as hOERBIGER. (Page 30)

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the Dragon haS learneD to SWim …Rust-red steel—not scrap, but carefully cut rectangular sections—fi lls the docks along the banks of the Huangpu River. Further along, the steel takes shape; segments of ships can be identifi ed, bulbous bows, stem sections, parts of bulkheads and decks. All these components are waiting to be assembled. Where oceangoing freighters are built from the individual sections, glowing steel sprays from the welders’ tools. The shipyard smells of ozone, scorched air and iron slag. Constantly in motion, the overhead cranes with their ear-piercing safety alarms mark the pulse of shipyard activity. TExT: Marcus Franken · PHOTOS: Papu Pramod Mondhe

HOERBIGER Valves (Changzhou) Co., Ltd.www.hoerbiger.com

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C hina’s shipbuilding industry blos-soms in the heart of Shanghai, about six miles from the ultramod-ern Pudong financial center. Steel plates are transformed into ocean-

going giants. It is not unusual for shipowners from Europe, the USA, Japan, and China to place large orders of up to ten ships of a single type.

Series Production for a Global Market

While one ship is docked in the Huangpu River receiving final fit and finish, the gantry cranes lay the stern of the sister ship. Meanwhile, the components of the midship of a third vessel are joined. Each individual segment would dwarf a four-story building.

The electrical and hydraulic lines required for operation have already been installed into the double-walled side sections. Piping for liquid management in the ship has likewise been pro-vided. On several steel hulls the openings for the future portholes can be seen. The shipbuilder’s

art consists of the ability to produce the massive segments so exactly that each piece fits into the next, despite the tendency of steel to bend and buckle under the heat produced by cutting and welding.

Week by Week a new seagoing Ship

At the shipyard that we are visiting, four sister ships are being built at the same time. Individu-al ship components are strewn about for the last vessel. For the layman, it is inconceivable how a seaworthy ship could be constructed from coarse metal plates. It is deceptive: each week the workers celebrate the completion of a ship with fireworks and exploding firecrackers as the ship is launched.

In one of the shipyards in Shanghai, a shipown-er takes us to a ship being built for him. The ves-sel awaits a sea trial. On the steel gangway we meet men coming on board to perform the final construction tasks. The funnels have to be painted again, the entire interior fittings for the

crew are missing as well as various electrical mo-tors and other technical equipment. The freight-er’s loading cranes are also not installed yet.

“The ship will carry heavy cargo,” the shipowner explains. The cargo holds will carry everything that is too large or heavy for a container, such as crane parts and container bridges, turbines, wind power systems, and even rolling stock.

Engine Technology from Europe—

Safety from China

The sound of work shoes echoes in the hull; the scent of oil fills the nose; the constant whirring of ventilators and pumps is in the air. Four steep stairways below the deck is the massive diesel drive. The MAN engine is the size of a small house; the exhaust line is comparable to an in-dustrial chimney. Bearing the Augsburg type plate of the MAN production site, the engine produces almost 10,000 kW or 13,600 horse-power. The ship diesel engines produced there are equipped with HOERBIGER pressure relief valves, as is this engine.

The HOERBIGER relief valves, which contribute to preventing damage resulting from an oil mist explosion in the engine crankcase, were pro-duced at the HOERBIGER Ventilwerke GmbH & Co. KG in Vienna, Austria. Soon European man-ufacturers will increasingly produce marine engines for the world market under license in China. In order to supply them as well as local manufacturers on site, HOERBIGER Valves (Changzhou) Co., Ltd. was established. Europe-an safety engineering—made in China.

The huge engine extends across several levels in the ship’s hull.

HOERBIGER relief valves in the lower area help to prevent damage

resulting from oil mist explosions. The new production plant in

Changzhou allows HOERBIGER to supply local engine manufacturers.

The engine is the size of a small house; the exhaust line is comparable to an industrial chimney.

The giant oceangoing vessels are assembled piece

by piece in the shipyard. The massive segments are

produced so that each part is a perfect fit to the next.

Huge cranes move the respective components into

the correct position.

Experts of the inspection company Germanischer

Lloyd examine one of the HOERBIGER relief valves

installed in the engines (picture below).

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By 2015 the World’s largest Shipyard: China’s

Shipbuilding Industry continues to grow

When Shanghai tourists sail down the Huangpu in their tour boats, passing the heavy goods and container terminals and the small white light-house where the Huangpu empties into the Yangtze, they can see the giant shipyards of Changxing Island on the other river bank. The heavy red overhead cranes display the CSSC lo-go of the China State Shipbuilding Corporation.

At this site, the shipbuilding facility of the CSSC is two and a half miles long and almost a mile

wide. In 2005, the entire grounds of the ship-yard were still undeveloped acreage and farm-land. Today container ships capable of bearing more than 8,000 containers are built here. Next to the hulls, the laborers moving in large groups to the cafeterias resemble ants.

CSSC intends to grow further—all the way to the tip of Changxing Island: in a few years, blazing welding equipment will take the place of blossom-ing mandarin orange plantations and small houses lying between the fields. The old shipyards in the center of Shanghai have long been too small. The

population of Changxing has moved away to make room for shipyard expansion.

The ambitions of the CSSC are emblematic of the aspirations of the Chinese shipbuilding in-dustry as a whole. With 60 subsidiaries and more than 100,000 laborers and other employ-ees the state-owned enterprise, founded in 1999, seeks to be the largest shipbuilder in the world by 2015. By then, it plans to produce an annual capacity of 14 million deadweight tons; this means that CSSC alone would commission two heavy cargo ships per day.

In the future, gas-powered and dual-fuel engines will gain in importance in the maritime field because their combustion is more environmentally friendly in comparison with conventional diesel engines. Many of these en-gine concepts already meet the International Maritime Organization’s IMO Tier III emissions regulations scheduled to take effect in 2016. The neces-sary safety on board is provided, amongst others, by HOERBIGER relief valves.

PART OF Shipyards are considered a key segment of heavy industry. Both South Korea and China have massively expanded their capacities with state sub-sidies. The People’s Republic continues to be the owner of the CSSC as well as other shipyards.

Due to low labor costs compared to other markets worldwide, today ships for mass transport are only built in Asia. Europe, with a world market share reduced to 5 percent, primarily builds special-purpose and cruise ships; engineering services, however, are provided worldwide. In January 2011, the China Daily newspaper announced that during the first half of 2010, Chinese shipbuilders for the first time overtook the previ-ous market leader South Korea in the number of incoming orders. All mar-ket watchers expect that in a few years China will also surpass South Korea in the cargo capacity of ships built.

PART HOERBIGER Explosion Protection Valves

In the fifties, there was tremendous hazard potential on ships from oil mist explosions. Explosions in engine crankcases resulted in equipment failure, disabling the ships. The number of marine accidents rose and ships were frequently lost due to the severe consequences of these explosions. An ad-equate solution that would prevent these devastating catastrophes was needed for engine manufacturers, shipyards, shipping companies, and in-surance companies.

HOERBIGER Ventilwerke in Vienna recognized the need. Its engineers managed to develop a relief valve for marine diesel engines which signifi-cantly mitigated the consequences of oil mist explosions. As a result, en-gine failures that were due to oil mist explosions were prevented.

Explosion protection in ship engines remains the largest field of application of HOERBIGER’s relief valves. HOERBIGER is a global market leader in this segment. In 2009, HOERBIGER established HOERBIGER Valves (Chang-zhou) Co., Ltd, a new site for the manufacture of relief valves for ship engines.

Ship engines today primarily use the EVO and EVS type series certified by the IACS (International Association of Classification Societies). They reliably meet the relevant UR M9 and M66 regulations.

Explosion Protection for Intake and Exhaust PipesA new interesting application for HOERBIGER relief valves is the protection from gas explosions in intake and exhaust pipes of gas-powered and dual- fuel engines. At present, the EVT and EVM series relief valves developed for these applications are employed both in stationary systems and in marine use.

HOERBIGER Valves (Changzhou) Co.,

Ltd. started production in 2009. The

new location in Changzhou manufac-

tures relief valves for marine engines.

These include the IACS-certified EVO

and EVS series.

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sive. At the end of 2007, the Executive Board approved the future-oriented investment. One year later, the first production equipment could be set up. April 2009 saw the start of pilot pro-duction. In that same year, more than 6,000 valves were produced and sold in Asia.

28 employees made up the team in the first few months. By the end of 2010, 75 skilled employ-ees were working under Jim Yang’s leadership. “Despite the financial crisis, which has signifi-cantly affected medium-term growth of the Asian shipbuilding industry, we will have more than 100 employees in 2011,” Yang states.

By investing in a new production plant in Asia, HOERBIGER rapidly won new regional custom-ers, in addition to existing international clients. Thus, in July 2009, the first valves were sold to Japan and in the following November, valves were sold to South Korea, one of the most signif-icant shipbuilding countries in the world. De-spite the decades-long intense cooperation be-tween the competition and local engine manufacturers, HOERBIGER has been able to achieve very good results.

“In April 2009, we sold the first valves produced in Changzhou to a Chinese customer,” Thomas Andexer, Safety Products Manager Asia, adds. “In 2010, close to 16,000 valves were sold. In the future, we want to produce more than 20,000 valves annually in Changzhou for sale in Asia.” Andexer is confident: “Our home market, the shipbuilding industry in China, is growing faster than in any other country in the world. In addition, we have a good position in the Japa-nese market and are seeing market share growth in the fiercely competitive South Korean market. One thing is for sure: no ship leaves the shipyard without explosion relief valves.”

What became of the British Valour in 2001? The crew got away with a scare. No one was injured. While the ship was drifting in the Atlantic, the crew was able to make an emergency repair to the diesel engine. The crippled ship was able to reach the destination harbor in Texas under her own power. After this event the British Valour re-ceived a general overhaul.

In the early evening of March 21, 2001, two explosions startled the crew of the super-tanker British Valour. Filled with 272,000 tons of crude oil, the ship was bound from Norway to Texas; Bermuda was only 80

nautical miles distant. A spark penetrated the crankcase through a worn area in the first piston of the 23,500 kW (31,500 horsepower) diesel engine of the ship, igniting the oily air trapped in the housing. The result was an initial explosion.

The shock wave shot into the entire engine room through the explosion relief valves on the en-gine. Since the relief valves could not restrain the flames, the escaping oil mist likewise ignited in the engine room. A second explosion ensued.

When the crew dared to enter the engine room, they saw black soot everywhere; and some steel plates were torn from their anchoring. Fortu-nately no one was below deck at the time of the explosion. With a failed engine, the 1,223 feet-long ship drifted in the Atlantic.

Not an isolated Case

Engine failure due to ignition of oil mist in the crankcase is not rare in large marine diesel en-gines. The incident on the British Valour, which was not equipped with HOERBIGER explosion re-lief valves, as well as numerous similar events led the International Association of Classification Soci-eties (IACS) to develop internationally applicable regulations for outfitting ship engines with certified relief valves. Compliance with the IACS UR M66 standard is now mandatory for all new vessels.

In the event of an explosion, relief valves meet-ing this standard open immediately upon slight excess pressure in the crankcase. Bursting of the engine resulting from high explosive pres-sure is thus prevented. The flame filter integrat-ed in the relief valve prevents fire from entering the engine room.

For decades HOERBIGER Ventilwerke GmbH & Co. KG has been a market leader in explosion relief valves. The valve design as well as produc-tion processes vital to manufacturing have been continuously improved.

Based on proven and robust production pro-cesses in Austria, in 2008 HOERBIGER estab-lished a new plant in China in order to grow to-gether with the local shipbuilding industry. It is easily foreseeable that the growth rate of the highly productive Chinese shipbuilding industry will continue to flourish.

Milling – Forming – Assembling – Testing

At HOERBIGER Valves (Changzhou) Co., Ltd., about 110 miles from Shanghai, there are no traces of soot and oil mist. The 75,000 square foot production hall is kept scrupulously clean. In addition to explosion protection valves, reed valves for air-conditioning and refrigeration com-pressors are assembled here in a separate area of the building. Cleanliness is the supreme com-mandment here.

The diesel engine of a supertanker is as large as an apartment building. Many of its valves are correspondingly large. The top models in the HOERBIGER portfolio are the size of a truck tire. On the other hand, the smallest types fit on a dinner plate.

HOERBIGER relief valves are used not only on diesel engines, but are employed in intake and exhaust lines in gas-operated engines. In plant construction, they safeguard dust containers. “The greatest volume of valve types produced in China is destined for ship engines,” explains Deputy General Manager Jim Yang.

In an initial production step, seats for the explo-sion relief valves are milled from metal rings. The blanks rotate on numerous axes on CNC

milling machines, while the milling tool cuts away superfluous material.

On a different machine, strip steel is formed by HOERBIGER proprietary technology into ge-ometry likewise protected by patents. Directly after the initial forming stage, the steel strips—now corrugated—are rolled over one another in-to spirals. The filter package created will later serve to cool the flames of an explosion in the shortest time.

In a further step, all individual components of the HOERBIGER explosion relief valve are as-sembled: seat, filter package, valve plate, and a central spring. The pressure wave of an explo-sion is reduced by compression of the spring, which allows opening of the valve plate. After each pressure relief, the valve is completely sealed again. Secondary explosions, such as on the British Valour in 2001, are prevented.

Finally, opening pressure and tightness are thor-oughly checked. The nameplate is attached only after the inspection has been passed. The assembled valves are packed in stable wood crates for delivery to the engine manufacturers.

Internationally certified

During the course of the establishment of the fa-cility in Changzhou, production processes and quality standards were inspected and success-fully audited by the 13 members of the Interna-tional Association of Classification Societies (IACS), as well as Germanischer Lloyd (GL), the Bureau Veritas (BV), Lloyds Register (LR), and the China Classification Society (CCS). In addi-tion, several worldwide engine manufacturers performed audits of their own. Upon the positive conclusion of all these inspections, the Chang-zhou plant received the same certifications as held by the Vienna facility.

The IACS certification has a decisive influence on the requirements of insurance policies and the amount of insurance benefits paid in the event of damage on a ship. For this reason, many shipowners, ship engineers and certification agencies insist that their ships be equipped with engines protected by HOERBIGER valves.

Construction in Record Time

The speed with which Jim Yang and his employ-ees built the new HOERBIGER plant is impres-

Explosion relief valves prevent disaster when the oil-air mist in the crankcase of a marine diesel engine is ignited by a spark. HOERBIGER is a worldwide market leader in this niche market. Development and Production were formerly concentrated at HOERBIGER Ventilwerke GmbH & Co. KG in Vienna, Austria; in 2008, HOERBIGER opened an additional facility in Changzhou, China. This site produces exclusively for the fast-growing Asian market. Unfortunately the shipbuilding industry is still suffering from the sharp economic decline of the past two years. Nevertheless, with the new production plant in China, HOERBIGER has been able to gain considerable market share. The number of employees has increased steadily. TExT: Marcus Franken · PHOTOS: Papu Pramod Mondhe

Safety engineering from China for Safe Sailing on all SeaS

The explosion relief valves, which are

produced by HOERBIGER Valves

(Changzhou) Co., Ltd., will later perform

an important function. Production at

the Changzhou site started in 2009.

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Jiangsu yawei machine-tool co., ltd.

Just a few miles away, we are standing on company premises measuring almost thirty-six soccer fields large. It is the site of Jiangsu Yawei Stock Co. In 2007, a team of HOERBIGER@MOTION visited

Yawei for the first time. Back then, the company specializing in machine tools was manufacturing press brakes in a hall that was more reminiscent of a shipyard. Five years later, Managing Direc-tor Zhibin Leng welcomes us in a new, modern commercial building: it is the calling card of an extremely successful machine manufacturer that utilizes China’s greater accessibility to be-come positioned among the leading players in the world market.

Once leading in Agriculture,now leading in Machine ToolsYawei origins date back to an agricultural ma-chine factory founded in 1956. Today, the Chi-nese company, which is listed on the Shenzhen stock exchange in South China, is a recognized innovation and technology leader in the ma-chine tools market segment. Its portfolio en-compasses CNC presses, shearing machines, stamping and nibbling machinery, and coil winding machines. At present, Yawei has ap-proximately 1,300 employees. Yawei’s growth rates far exceed those of the sector average. The

production operation is certified according to the international quality standard ISO 9001:2000. The press brakes and stamping and nibbling machines produced by Yawei bear the quality seal of TÜV Rheinland (Rhineland’s Technical Inspection Association), which from its base in Germany conducts industrial certifications around the globe. In 2007, Yawei was awarded the coveted “China Famous Brand” status.

In China, Yawei is one of HOERBIGER Automa-tion Technology’s most important customers. The Chinese-European alliance is a win-win sto-ry for both companies. CNC press brakes made by Yawei, for which HOERBIGER supplies the hydraulic drives and controllers, a key technolo-gy, earned the coveted “China Top Brand” award back in 2005. Yawei was one of the first Chinese market players to receive this honor.

There is a lot more to the Brand:Asia’s impressive PowerA look at the company’s history shows a rapid development of the business since 1999. It was that year that the former state corporation was privatized and repositioned under the name of Yawei. The brand is far more than a company name. It embodies the corporate vision: Yawei is composed of the Chinese characters “ya,”

It takes just over an hour on the Chinese high-speed train “Harmony Express” and then a short drive over newly graded highways for us to leave Shanghai behind us and make the 150-mile journey to the middle of Jiangsu, China’s most populous province. The historic center of the city of Yangzhou, which is home to four and a half million residents, boasts ramifi ed canals, quaint alleys, picturesque arched bridges, and idyllic tea houses: picture-book scenic China. Yet, this is only one face of the city. Its other face is the rich contrasts of traditional and modern styles.text: Ludwig Schönefeld · PHotoS: Ingo Bulla

I N T H E FA S T L A N E

yaWeitHe name SayS it all

meaning “Asia,” and “wei,” meaning “impres-sive power.”

Before Zhibin Leng provides us with insights in-to the milestones of Yawei’s success story, he describes his own occupational history. He knows the company like the back of his hand. He has been there for over 20 years, ten of them in technical management leadership po-sitions. In 2000, the millennium year, he was appointed Managing Director, which is his cur-rent position with the company.

China’s Opening providedAccess to the World MarketThe policy of China’s opening toward the world market—which started at the beginning of the nineties—and inspiring success stories moti-vated numerous state-owned enterprises in the ten years thereafter to strive for cooperation with leading companies abroad. The objective: “win-win solutions” for those involved. This also applies to Yawei. Initial contacts with HOERBIGER Automation Technology devel-oped at the turn of the millennium. This evolved into a prime example of a business partnership. In 2011, Yawei and HOERBIGER celebrated the ten-year anniversary of their close partnership, which is based on mutual appreciation. www.yawei.cc

The modern CNC press brakes made by Yawei

earned the coveted “China Top Brand” award

back in 2005. The press brakes are fi tted with

HOERBIGER hydraulic systems.

024

025

Partnership builds on Expertise and IdentityYawei uses compact electrohydraulic axes made by HOERBIGER as the drive system for press brakes and, in the future, as actuators for stamp-ing and nibbling machines. Zhibin Leng reports that HOERBIGER’s expertise in this field is what convinced Yawei right from the start.

The wealth of experience and personal dedica-tion of Norbert Poth played a decisive role in this process. One of the Managing Directors at HOERBIGER Automatisierungstechnik GmbH, he is in charge of business development in Asia. He laid the foundation for the business relation-ship with Yawei ten years ago.

With great empathy and still deeply impressed, Zhibin Leng recalls the first visit to HOERBIGER Automatisierungstechnik in Altenstadt, Upper Bavaria, in 2001. The modern HOERBIGER manufacturing facility became the role model for the new production installations of Yawei in Yangzhou in many respects.

Zhibin Leng says: “The sophisticated technolog-ical solutions offered by HOERBIGER were in sync with our requirements and expectations from the very start. The HOERBIGER drive sys-

tems allowed us to considerably boost the qual-ity and productivity of our CNC machines and significantly expand our competitive edge and cost advantage.”

European Know-how —a Strong ArgumentSince then, integrating European key compo-nents in Yawei’s machine tools has been inten-sively promoted: European know-how is a strong argument, even beyond the Chinese market. The intensity and significance of this competi-tive advantage is clearly apparent from Yawei’s sales figures. Over the last few years, they rose by 40 percent on average.

While in 2006 Yawei sold 200 CNC press brakes in the market, the number rose to over 1,000 ma-chines in the 2011 fiscal year. The export share is presently over 15 percent. “We strive to further expand exports, especially to high-end markets such as Europe and North America, but also to the Southeast Asian region, and for a few years now to India as well,” said Zhibin Leng.

Key Componentsfrom local ProductionToday, the hydraulic drive systems for Yawei’s machine tools are produced by HOERBIGER

(Wuxi) Automation Technology Co., Ltd. With respect to the local cooperation, the Managing Director of Yawei appreciates in particular the competent support from Allan Zhu, Managing Director of HOERBIGER in Wuxi. Yawei can count on Zhu’s qualified specialists and their reliable service. And this is how it should re-main: “I look forward with excitement to another decade of close relations,” said Zhibin Leng. He anticipates that HOERBIGER and Yawei will con-tinue to work closely together when it comes to constantly improving existing technologies and developing innovative systems.

Investments foradditional Market ShareYawei approved an extensive investment totaling more than 31 million euros just a few months ago, aimed at garnering additional market share. Almost one third of the investment will go toward the construction of a new research center.

Yawei’s goal is to offer machine tools worldwide with leading technology and extensive services. This global orientation calls for specific solutions to accommodate varying customer requirements.

In cooperation with partners, the company plans to increase the global brand awareness

through regionally tailored advertising and com-munication campaigns. Yawei already has an international network of 30 distributors in place in over 10 countries.

Exemplary Leadership: People—a Factor of SuccessZhibin Leng is confident about the future of Yawei. He relies on the employees in the pro-cess. They now identify considerably better with the company because they are allowed to be involved in the company’s success. The leader-ship style at all levels of management aimed at participation has also resulted in high loyalty among the staff, which is reflected in their dedi-cation and the willingness to pursue continuing education.

Managing Director Zhibin Leng welcomes us wearing the blue production uniform. The fact that he comes from their own ranks and today is a successful high-level executive is the reason why many employees consider him to be an example, in the Confucian sense.

Yawei is far from having played all of its cards. “Ya,” meaning “Asia,” and “wei,” meaning “impressive power”: the name says it all. The Chinese machine manufacturer is ideally suited to continue to show in the future that there is a lot more to the brand.

PartElectrohydraulic drive systems and the related control electronics are key technologies for modern CNC press brakes. They assure maximum precision in sophisticated metal forming operations. Over the last few decades, HOERBIGER has fitted more than 65,000 CNC press brakes with hydraulic systems.

HOERBIGER has perfected the integration of hydraulic components in the system and improved reliability like no other manufacturer. In the present systems, the pump, pressure filter and pressure adjustment of the performance module are combined in one control block. Modern con-trol valves enable optimal sequences of motions and exact positioning. By regulating the power input, energy is supplied based on load and used efficiently.

Part ofChina is one of the largest and fastest-growing markets for CNC press brakes in the world. Yet, at approximately 60 percent, the predominant market share comes from machines in the lower segment. The 12th Five-Year Plan published by the Chinese government in 2011, however, directs particular attention to the development of state-of-the-art, high-quality CNC machines. This creates excellent opportunities and prospects for ambitious market players like Yawei, as well as for suppliers of key com-ponents.

PartnerSHiPHOERBIGER Automation Technology and its Wuxi branch have been pre-ferred partners of Yawei for more than ten years when it comes to the con-tinuous enhancement of CNC press brakes, primarily for the Chinese market, but also for the global market. HOERBIGER’s decades-long expe-rience and Yawei’s ambitious corporate vision form the basis of a success-ful cooperation. The resulting technology leaps have been recognized in China on multiple occasions, receiving national awards.

“The sophisticated technological solutions offered by HOERBIGER were in sync with our requirements and expectations from the very start.”

Yawei Managing Director Zhibin

Leng has relied on the excellent

cooperation with HOERBIGER

for quite some time.

Later, during metal

forming, the hydraulic

systems made by

HOERBIGER assure

precision. They are

manufactured in

HOERBIGER’s branch

in Wuxi.

026

027

HOERBIGER Automation Technol-ogy was among the first foreign investors in Wuxi. The company settled here in 2003, and in 2007—almost concurrently with

the opening of Wuxi’s new International Airport—moved to a new location in Anzhen Xidong Park, an industrial park designed specifically with the requirements of fast-grow-ing companies in mind. In December 2008, this new site was ISO 9001-certified by TÜV Süd, Germany’s Technical Inspection As-sociation.

“Within HOERBIGER Automation Technology, we are the production and distribution center for the regional Chinese markets,” explains Allan Zhu, General Manager of HOERBIGER (Wuxi) Automation Technology Co., Ltd. Allan Zhu has worked for HOERBIGER for 16 years and was in-volved in developing the Wuxi location.

Presently, the site focuses on hydraulic sys-tems for machine tools, notably press brakes. In the future, China will become an important sales market for two additional strategic busi-ness segments of HOERBIGER Automation

Technology, more specifically for automated con-trol valves and lifting columns for operating tables.

In the entrance area of the no-frills building, the strongest-selling products of HOERBIGER (Wuxi) Automation Technology Co., Ltd. at pres-ent are displayed: hydraulic systems which are used primarily in CNC press brakes.

To meet the demand on the Chinese market, the Strategic Business Unit has invested in state- of-the-art machining centers which produce preci-sion hydraulic control blocks of high quality.

All Indications are pointing to GrowthThe workshop is filled with a faint smell of oil, and the buzzing of the machining centers blends at regular intervals with the hissing of the air gun which Hua Jiaping uses to clean milling chips off components for hydraulic systems. Hua Jiaping is a man of average build with a calm air. He has worked at HOERBIGER for four years. He received his training by attending a machine technology school.

Hua Jiaping seems very satisfied with his job—and he says so too: “We have an excellent work

environment here,” he raves. The working hours—six days a week, from 8 am to 5 pm—are very accommodating for him and his family, including a three-year-old daughter.

HOERBIGER has a total of 55 employees in Wuxi. Compared to other companies in China, employee turnover is rather low.

This is also due to the fact that the significance of the Wuxi site is increasing in HOERBIGER’s international structure. The company is continu-ously investing in expanding capacities. In addi-tion to the three machining centers installed so far, the building layout provides for an additional six machines.

At HOERBIGER in Wuxi, all indications are pointing to growth. A large number of industries need machining centers, especially modern CNC-controlled press brakes with HOERBIGER hydraulic systems.

Wuxi, located approximately two hours west of Shanghai by car, is home to more than 4.5 million people. And the city in Jiangsu Province continues to grow. Year after year, new industrial parks and housing developments emerge. The seemingly unstoppable growth of the metropolis only began a few short years ago, when the first industrial park for foreign investors in Jiangsu Prov-ince was founded in Wuxi. Prior to that, Wuxi—boasting Lake Taihu, the third-largest freshwater lake in China, Luding Hill and over 3,000 years of rich history—was primarily a tourist destination. TExT: Marcus Franken · PHOTO: Papu Pramod Mondhe

Hydraulic SyStemS from Wuxi

“demand originates Primarily in china”

The HOERBIGER hydraulic systems are used

primarily in CNC press brakes.

Piece by piece, the components of the hydraulic systems are assembled in the production plant of HOERBIGER (Wuxi) Automation Technology Co., Ltd. The company moved into the modern machining center in Anzhen Xidong Industrial Park in 2007 and was certified according to ISO 9001 by TÜV Süd in 2008.

028

029

sioning of hydraulic drives and controllers for CNC press brakes. Neither the large provid-ers of standard components nor the small, of-ten locally operating, niche manufacturers can offer that.

HOERBIGER@MOTION: Where do you see HOERBIGER Wuxi in five years?AllAn Zhu: We are working intensively on new products, both for our existing markets and for new market segments. We will continue to grow. In five years, the halls here will be fully utilized. Our workforce is expected to more than triple by then.

hOERBIGER is a market leader for hydraulic sys-tems and controls in the niche market for CnC press brakes in China. Allan Zhu, General Man-ager of hOERBIGER (Wuxi) Automation Technol-ogy Co., ltd. sees additional development po-tential for hOERBIGER.

HOERBIGER@MOTION: How is demand for machine tools developing in this environment? AllAn Zhu: In 2010, we were able to boost our sales by 30 percent over the previous year. Ma-chine tools, and press brakes in particular, are needed for building factories, for manufacturing other production machines, especially for the electromechanical industry. This is infrastruc-ture in the broader sense. As long as China con-tinues to develop, we can assume that demand for modern components and systems for ma-chine tools will not subside.

HOERBIGER@MOTION: Where do you see the future growth areas? AllAn Zhu: In China, our market share for com-puter-controlled (CNC) presses is very high. It is almost 80 percent. Although HOERBIGER is the market leader for hydraulic systems and control-lers in this niche market, we see continued

growth potential, especially for systems that com-bine high power density with energy efficiency. Energy efficiency in particular is a topic that is cur-rently promoted by the Chinese government.

In addition, far more than 10,000 press brakes are still being sold without CNC controllers in China every year. These machines will have to be replaced with CNC presses in a few years. This is also an exciting trend for us. HOERBIGER@MOTION: Where do you see the strengths of the Wuxi site? AllAn Zhu: We have two groups of competitors: On the one hand, these are local companies which attempt to copy our products, but achieve neither our volume nor our quality. These com-panies in turn supply very small manufacturers of press brakes, which typically produce fewer than ten to twenty presses a year.

On the other hand, there are very large providers of hydraulic components that offer standard products—commodities—by catalog.

Our customers are generally medium-sized, very innovation- and technology-oriented com-

panies that place very high demands on their suppliers.

Here, we set a high standard with the quality of our products, our service, and the advisory ex-pertise of our application engineers. Both the small, local hydraulic suppliers and large, inter-national manufacturers of standard components cannot satisfy the same high standard.

We intensively address our customers’ require-ments and can therefore offer them tailor-made solutions. In addition, we support the manufac-turers in China with our know-how in the dimen-

“We set a high standard with the quality of our products, our service,

and our advisory expertise.”

The site of HOERBIGER (Wuxi) Automation Technology Co., Ltd.

“We See additional groWtH Potential.”

Allan Zhu, General Manager of HOERBIGER (Wuxi) Automation Technology Co., Ltd., has worked for HOERBIGER for 14 years and was involved in developing the Wuxi location.

030

031

MOBILITY AND COMFORT FOR THE MOST POPULOUS COUNTRY IN THE WORLD

Anyone who has not visited China over the last few years and personally witnessed the speed at which the country is evolving will have a diffi cult time appreciating the rapid construction of Volkswagen Automotive Transmission (Dalian) Co., Ltd., VWATD. In September 2007, Volkswagen corporate management in Wolfsburg, Germany, approved the new transmission plant project. The objective was to exclusively manufacture the DSG® DQ200 direct-shift gearbox for the Chinese market. By the end of 2011, Volkswagen is already producing as many as 350,000 transmissions a year in Dalian. Production of the site is scheduled to balloon to 900,000 transmissions by the end of 2014. TEXT: Ludwig Schönefeld · PHOTOS: Ingo Bulla

www.vwatd.com/extranet

Volkswagen Automatic Transmission (Dalian) Co., Ltd.

032

033

T he DSG® (Direct-Shift Gearbox) DQ200 transmission is an advance-ment of the DSG® DQ250 double-clutch transmission launched in Germany in August 2003 with the

Golf IV R32. The innovative transmission was designed with a dry seven-speed double clutch for a torque of 250 Newton meters (Nm) and engine power output of up to 125 kilowatts. It is installed as a front-transverse transmission.

In August 2008, the DSG® DQ200 transmission celebrated its premier in Germany in the Golf V and the Touran. Its specifications make the direct-shift gearbox equally suited for a variety of vehicle types. The applications range from the small Polo to the Passat, a mid-range sedan.

The ideal Transmission for ChinaBecause of its broad application spectrum, the DSG® DQ200 transmission is truly a global trans-mission for Volkswagen: the diversity of the new direct-shift gearbox ideally satisfies the market requirements in Asia, and particularly in China.

China is a sales market that poses special chal-lenges in many respects. When designing a

Volkswagen for the most populous country in the world, consideration must be given, for example, to the regionally severely fluctuating temperatures and frequently extremely high humidity as compared to Europe.

The greatest difference in comparison with Europe, however, is the driving style: “Our cus-tomers in China move about at low torque in the lower speed ranges,” Thomas Ogos explains, Head of Purchasing of VWATD.

The 37-year-old Head of Purchasing knows what he is talking about. He was also involved in the de-velopment of Volkswagen Group China (VGC) in Beijing between 2004 and 2007. After working in Germany for three years, he returned to China with his family in 2010 for VWATD. “The reason behind the slow traffic flow is urbanization, which leads to gridlock in the rapidly growing cities.” Congestion and stop-and-go traffic are on the rise. This leads to a growing demand for automatic transmissions.

Drivers in China learn in driving school to upshift to the next gear early. “When Europeans are still in second gear, the Chinese are already in 5th gear.” The goal is to minimize fuel consumption.

The Customer’s Focus: Efficiency ...This is where the DSG® DQ200 transmission from Volkswagen can score points. Thomas Ogos says, “In conjunction with the EA 111 1.4-liter TSI engine, we achieve fuel savings of approximately 25 percent compared to a regular automatic transmission.” This is a compelling argument, notably in China, a country that since the 2010 World Expo would like to raise its inter-national profile when it comes to the protection of the environment. Vehicles equipped with the 1.4-liter TSI engine and the DSG® DQ200 trans-mission are therefore in great demand.

As in Europe, popular small and compact vehicles in China include the Polo, Golf and Touran as well as the Fabia, Superb and Octavia produced by Volkswagen subsidiary Skoda. The Sagitar and Lavida models as well as the 1.4-liter version of the Magotan are three in-house develop-ments that are offered exclusively on the Chinese market and round out the Volkswagen product range. In the future, all models will be available with the new direct-shift gearbox—including the New Bora.

Thomas Ogos, Head of Purchasing at

VWATD, talking to Changshan Gao, Sales

and Project Manager Market Segment

Asia Pacific at HOERBIGER Drive Techno-

logy Asia Pacific.

Volkswagen employee Gao Liqiu installs the HOERBIGER sliding sleeve

in a first assembly step.

HOERBIGER supplies the sliding sleeves, a key component of the trans-

missions. In addition to know-how, proximity to the customer is essential.

The second site of HOERBIGER Drive Technology in Changzhou, China,

was constructed in conjunction with the Volkswagen transmission plant.

The DSG® DQ200 transmission opens up a wide spectrum of ap-

plications for Volkswagen. The range runs the gamut from small

and compact vehicles such as the Polo, Golf and Touran, to the

Magotan, which is offered exclusively on the Chinese market.

“When Europeans are still in second gear, the Chinese are already in 5th.” Thomas Ogos, Head of Purchasing at VWATD

034

035

... Features and ComfortIn larger vehicle categories, Volkswagen offers the direct-shift gearbox in combination with a 1.8-liter TSI engine, such as in the 1.8-liter ver-sion of Skoda’s Octavia and in the Magotan. The Magotan is a sedan in the upper mid-size class. It was developed specifically for the Chinese market. “In this vehicle class, Chinese customers attach importance to a sophisticated ambience,” Thomas Ogos explains. “Leather interior and air- conditioning come standard, as does the shift comfort of the direct-shift gearbox.”

Until January 2010, the DSG® DQ200 was built only at Volkswagen in Kassel, Germany. Dalian is the second plant worldwide in the Volkswagen Group to produce the direct-shift gearbox.

Site rich in Industrial TraditionThere were two good reasons for selecting the metropolis in China’s north—which six million people call their home—as the site for the trans-mission plant. Dalian already had a FAW VW engine plant, which is a joint venture between the Chinese automobile manufacturer First Au-

tomotive Works and Volkswagen. Thomas Ogos says, “This allowed us to take advantage of syn-ergies and we did not have to start completely from scratch.” Moreover, Dalian is conveniently situated between the Changchun site (FAW VW) in the north and the Shanghai (SVW) and Chengdu (FAW VW) locations in the south.

The special conditions of the New Urban District of Dalian, a communal development zone in Dalian’s north, played another role. Volkswagen and other industrial investors encounter an ide-

al environment here for establishing new pro-duction plants and development centers. The city and government assure the necessary living quarters and the entire infrastructure. The eco-nomic structure of the city as a location that has a long tradition in shipbuilding and mechanical engineering as well as in electronics and IT industry also favored Dalian.

Showcase Plant in the Volkswagen GroupZafer Celik, Deputy Supervisor Assembly Pro-duction Department, is one of the experts in charge of developing the production operation. The vertical integration of the site encompasses machining of the drive wheels, 13 gear wheels and five shafts of the DSG® DQ200 transmission before and after heat treating. Other key parts of the operation include the Heat Treatment Shop with five pusher-type furnaces and two rotary hearth furnaces as well as Assembly and Testing.

“In the Volkswagen Group, we are presently the showcase plant when it comes to transmissions,” says Zafer Celik. A continuous improvement process (KVP) and the Kanban system make the site efficient. “We are very proud of all that. Worldwide, our scrap rate is the lowest in the Volkswagen Group.”

Zafer Celik started his career in 1986 at Volkswa-gen in Kassel in gear manufacturing. Aside from his job and his responsibilities as a family man, he completed his master craftsman training before switching to the Volkswagen Preproduction Tech-

nology Center in Kassel. From there, he went to Dalian on September 1, 2009 to support the start of production: “I began with 40 employees here.”

Today, transmission assembly has approximately 200 employees in a four-shift operation. Approx-

imately another 150 mechatronics employees are also part of the team of the 43-year-old. Over the course of the second expansion phase, the number of employees will more than double.

The staffing level of the Dalian transmission plant will grow to approximately 1,900 employ-ees by 2014. How does Volkswagen manage to build a workforce of this magnitude in such a short time? What’s more, how do they build a team in which approximately 40 percent have an education in a technical field, approximately 35 percent graduated from a vocational college, and just over 20 percent have a univer-sity degree?

Zafer Celik says, “We established contact with the schools, universities of applied science and universities here in Dalian, in Shanghai as well as in Changchun long before building the new site. The students were already being prepared then for their work at Volkswagen. This meant they were available in time for the development of the transmission plant in Dalian.”

The employees receive with their final, job-spe-cific training at Volkswagen using special group learning cells. The members are not integrated into the operation teams until they master every assembly step “practically blind-folded.”

Fully utilized for Years to comeA look at the current model range of Volkswagen reveals that the market in the largest and most populous automobile nation of the world is changing. So far, Volkswagen classics, the Santana and Jetta, which since their launch in the 1980s have been repeatedly upgraded in several model generations, remain two of the most widely driven passenger cars in China.

In the near future, customization will be increas-ingly in demand. Volkswagen has anticipated these changing customer expectations and in China is offering a suitable vehicle for every customer’s desire due to its extremely broad and diverse range of a whole host of model variants.

The majority of these vehicles will likely not be equipped with classic manual transmissions in the future, but rather with modern direct-shift

Volkswagen employees Luo Yingming

and Chen Xu with gear wheels.

The synchronizer rings of the transmission

are inserted in the sliding sleeve.

On the assembly line, the transmission housings

come together and the shafts are preassembled.

Yu Xiaonan, a logistics employee, consults with Song Chengliang, an employee from the

measurement and screw-assembly department, in front of a design drawing.

Zafer Celik, Deputy Supervisor Assembly

Production Department, was one of those

in charge of developing the production

operation of the new plant. He came to

Dalian in 2009.

0

1000

800

600

400

200

201420122010 2011

900

600

2013

740

150

400

Demand

VWATD capacity

Volume (in k) of transmissions produced in Dalian

DQ200 production volume outlook

HOERBIGER sliding sleeve—made in China. At present, the majority

of components that are required are still procured from Europe. This

will change in the foreseeable future. The share from local production

is sched uled to climb to about 90 percent by the end of 2012.

“In the Volkswagen Group, we are presently the showcase plant when it comes to transmissions” Zafer Celik, Deputy Supervisor Assembly Production Department

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PART The DSG® DQ200 direct-shift gearbox consists of about 200 parts in total. For its production, Volkswagen procures semi-finished parts and compo-nents from approximately 50 suppliers. In 2010, approximately 60 percent of these parts were imported to China, primarily from Europe. The share from local production is scheduled to climb to approximately 90 percent by the end of 2012. The suppliers that work with the Volkswagen Group around the world are required to have a global presence, implement uniform quality standards around the world and optimize material costs by employing synergies and localization. One example is HOERBIGER Drive Technology (Changzhou) Co., Ltd. (HDC). The second location of HOERBIGER Drive Technology in China opened in October 2010 was designed and constructed in conjunction with the development of the Volks wagen transmission plant in Dalian. This facility produces the sliding sleeves for the DSG® DQ200 gearbox, which is a performance- and com-fort-defining key component of the transmission.

gearboxes. By constructing the Dalian transmis-sion plant, Volkswagen has set the course for satisfying the growing demand for these econo-mical and comfortable transmissions, in which Volkswagen is supported by efficient, local suppliers such as HOERBIGER Drive Technology in Changzhou.

Thomas Ogos adds, “We are very upbeat about the coming years. We have a very large product range, which meets with excellent response among our customers. The DSG® DQ200 direct-shift gearbox was received very positively by the customer.”

PART OF Putting out 9.16 million vehicles, China was the largest automobile producer worldwide in the first half of 2011, followed by the USA with 4.26 million vehicles, Japan with 3.43 million vehicles, and Germany with 3.2 million vehicles. Boasting 4.13 million vehicles sold, the Volkswagen Group ranked number 2 among automobile manufacturers behind General Motors with 4.54 million vehicles. Volkswagen sold 1.1 million vehicles in China between January and June 2011. This is a year-over-year increase of 16.5 percent. Nine sites out of the 62 production plants of the Volkswagen Group are now located in China.

Volkswagen anticipates continued growth of the Asian markets for the foreseeable future: “We are producing exclusively for the local market,” explains Zafer Celik. “Every transmission we produce is practically already sold. In the coming years, no transmission from Chinese production is like-ly to be exported.”

PARTNERSHIPVolkswagen has been active in China since 1984. At that time, Shanghai Volkswagen (SVW) was founded as a joint venture. This was followed in 1990 by the inception of FAW VW, which is a joint venture between the Chinese automobile manufacturer First Automotive Works and Volkswagen.

The first vehicles built in China were the Jetta and Santana. Hundreds of thousands of these reliable cars can still be found on the roads, primarily as taxis, but also as personal vehicles.

The involvement of Volkswagen in China was aimed at developing powerful local production to allow the country to supply its own modern motor vehicles.

Volkswagen Automatic Transmission (Dalian) Co., Ltd. is the first Volkswagen component plant in China that is not backed by a joint venture partner. VWATD is a wholly owned subsidiary of Volkswagen AG.

The fully assembled transmission. The DSG®

DQ200 direct-shift gearbox is optimally reconciled

with the challenges found in China, which include

the special weather conditions with drastic tempera-

ture fluctuations and higher humidity as well as the

very different driving style of the Chinese.

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039

the supplier must also eliminate a problem within a matter of hours. In the past, we have always been able to solve such situations with HOERBIGER in a very partner-like and positive way.

HOERBIGER@MOTION: Does HOERBIGER have a know-how advantage?ThOMAs OGOs: Yes.—In the medium and long term, however, HOERBIGER must work on this know-how, because the Chinese market also has competitors that are able to offer sliding sleeves and produce in a comparable quality.ZAfER CElIK: Honestly, I see this a bit more critically. Nobody in the automotive business has truly exclusive know-how. A company has experience that it has collected over the years, which provides it with advantages in terms of quality. Everyone, however, has the fundamental know-how.

It is a major error of European companies to believe they are the only ones who have the know-how. Then you suddenly realize that there is a local supplier, here in China, that can deliver the product in the same quality.

Having personal contacts locally, speaking the same “language,” that is truly a benefit. Compared to the local providers, the Europeans have the added bonus of having dealt with us for many years.

HOERBIGER@MOTION: Is this specific to China?ZAfER CElIK: In China, a relationship that is built on trust is even more important than in Europe. The process of earning and establishing trust is long. We oftentimes hold talks over weeks and months until a contract is realized. This is dif-ficult to teach to Europeans.

HOERBIGER@MOTION: What is your assess-ment of the continued development of the auto-motive industry in China?ThOMAs OGOs: We are very upbeat about the coming years. We have a very large product range, which meets with excellent response among our customers.ZAfER CElIK: The market has expanded quickly since 2009. China is booming, also as far as the automobiles are concerned. Just take the road in front of our plant. In 2009, this was all grass-lands; now you can’t cross the road any longer because of the traffic. The economy continues to flourish, despite government-mandated re-strictions on growth.

We spoke with Thomas Ogos, head of Purchasing Department, and Zafer Celik, Dep-uty supervisor Assembly Production Depart-ment, about the new transmission plant of Volkswagen in Dalian and the particular chal-lenges of the Chinese market.

HOERBIGER@MOTION: What requirements does the Chinese market have for vehicle trans-missions, and in particular for the synchronizers?ThOMAs OGOs: In a regular transmission, fre-quent shifting—which is typical of the driving style here in China—places high demands on the sliding sleeves. This is controlled automati-cally in the DSG® DQ200. The customer has influence on the shifting behavior of the trans-mission only by the amount of acceleration or deceleration.

HOERBIGER@MOTION: What role does HOERBIGER play as a supplier of synchronizer components?ThOMAs OGOs: Automobile production includes the vehicle, engine and transmission. We can-

not produce all components ourselves. Volkswa-gen Group has approximately 430,000 em-ployees worldwide. Every day, we build approximately 20,000 vehicles in 200 different models around the globe. This alone is sufficient-ly complex to handle, and the size of the company is difficult enough to manage every day.

Breaking down this complexity to very speci-fic components such as sliding sleeves would no longer be manageable for Volkswagen. This is why we have partners such as HOERBIGER on whom we can rely.

HOERBIGER has been a long-standing part-ner of Volkswagen in Europe and is also present locally in China. It was an obvious choice for Volkswagen Automatic Transmission to consider such a proven partner as a supplier for the sliding sleeves for the DSG® DQ200.

HOERBIGER@MOTION: What do you expect of a global partner?ThOMAs OGOs: As a buyer, I always expect a commercially attractive price, a high level of product quality, and ultimately also delivery reli-

ability. These are becoming increasingly impor-tant in the growing Chinese market.

Moreover, our suppliers must be up to the challenges of the rapid development of the mar-ket. Considering the volume trend we are expe-riencing, it is a given that the vendor must also be able to supply resources and capacities in a timely manner.

In short: on-time delivery, quality and service must be right.

HOERBIGER@MOTION: What are your expec-tations of HOERBIGER locally?ZAfER CElIK: We expect HOERBIGER to continue to exhibit the flexibility it has demonstrated until now. It is important to us that HOERBIGER makes a positive contribution, in particular in difficult situations such as those we have expe-rienced on occasion. We managed these inci-dents together. We benefited from the fact that HOERBIGER is a company that has accompa-nied us over decades and supports us, as a de-velopment partner, with its experience and know-how.ThOMAs OGOs: In general, we expect our sup-pliers to always demonstrate a certain level of flexibility and to pursue unconventional ave-nues on occasion—something that is especially important in such a dynamic market as China. As a global company, we cannot always recon-cile theoretical processes with practical pro-cesses the way we would like to. Trust and a long-term partnership are important compo-nents for the future.

HOERBIGER@MOTION: How do you perceive the collaboration with HOERBIGER?ZAfER CElIK: In Production, it is certainly not easy to work with an external supplier. We are the end customer so-to-speak and, of course, would like to have parts that are OK.

Why is this so important to us? Every defect means a lot of work for me. I have to sort the parts, measure the parts and carry out a 100 percent inspection during assembly and then wait for the supplier to respond. If I don’t have a second batch in stock and encounter a major quality problem, production is shut down. The more quality deficiencies a supplier has, the higher is the expense and ultimately the damage for Volkswagen.

We schedule a maximum of two hours for solving a problem with a component from in-house production. This means that, in fact,

Volkswagen Automatic Transmission (Dalian) Co., Ltd. (VWATD) is presently the most cutting-edge transmission plant of the Volkswagen Group. Founded as a wholly owned subsidiary, the site supplies the Volkswagen plants in Shanghai, Chengdu and Changchun with the DSG® DQ200 direct-shift gearbox. In January 2010, Dalian produced the fi rst transmissions after a planning and construction phase spanning almost two and a half years, and more than 600,000 DSG® DQ200 transmissions are scheduled in Dalian for 2012. The volume is expected to increase to 900,000 transmissions per year by 2014. INTERVIEW: Ludwig Schönefeld · PHOTOS: Ingo Bulla

Zafer Celik (43) started to work for Volkswagen in 1986 in gear manufacturing in Kassel. After com-pleting his master craftsman training, he initially worked as an employee in the VW Preproduction Technology Center in Kassel starting in 1999. He transferred from Germany to China in September 2009 to de-velop the production operation at Volkswagen Automatic Transmission.

Thomas Ogos (37) has been the Head of Purchasing of Volkswagen Automatic Transmission (Dalian) Co., Ltd. (VWATD) in Dalian since 2010. In this capacity, he manages two areas: procurement for production and general purchasing. He started his career in 1991 with an industrial electrician apprenticeship at Volks-wagen in Wolfsburg. After continuing his education in electrical engineer-ing and business administration, he joined Volkwagen’s Purchasing Department in 2002 after working in Production and Maintenance. He was involved in the development of Volkswagen Group China (VGC) in Beijing between 2004 and 2007, before transferring to Germany to work there for three years. Thomas Ogos is married and has three chil-dren. He and his family live in Dalian.

“QUALITY AND SERVICE

MUST BE RIGHT”

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041

According to data from the Ger-man Association of the Automo-tive Industry (VDA), Germany’s auto industry lobby group, China churned out 9.16 million vehi-

cles, making it largest automobile producer worldwide in the first half of 2011, followed by the USA with 4.26 million vehicles, Japan with 3.43 million vehicles, and Germany with 3.2 million vehicles. Despite these high production figures, the per capita number of motor vehicles in Chi-na is relatively low in comparison with devel-oped national economies. In China, there are only 20 passenger cars for every 1,000 resi-dents; only major cities, such as Beijing, have a higher level of vehicle ownership with 171 pas-senger cars per 1,000 residents. In Germany, the ratio is 500 vehicles per 1,000 residents, and in the USA it is as high as 800 vehicles.

Rapid Market GrowthThis poses a challenge for the locally producing automobile manufacturers, but also for suppli-ers, such as HOERBIGER, who establish dedi-cated plants for their customers in order to lo-cally produce key components.

One example is the Chinese subsidiary of HOERBIGER Drive Technology in Changzhou founded in 2009. Concurrently with the devel-opment of the Volkswagen transmission plant in Dalian, HOERBIGER Drive Technology built a new production plant. It focuses on synchro-nizer systems. They form the core of manual transmissions and modern double-clutch transmissions.

At present, HOERBGER Drive Technology (Changzhou) Co., Ltd. produces primarily sliding sleeves for the Volkswagen transmission plant in Dalian.

In the medium term, HOERBIGER Drive Tech-nology will expand the Changzhou plant under the umbrella of the Business Unit Asia Pacific into a central production location for all custom-ers in the Asia-Pacific region. “China is our access to the Asian market,” said Franz Soffa, Head of Asia Pacific. “From this location, we will

also serve our customers in South Korea and other Asian markets.”

Industrial Park for Cutting-Edge TechnologyDr. Zhen Huang has been the Managing Direc-tor of HOERBIGER Drive Technology (Chang-zhou) Co., Ltd. since the beginning of 2012: “Developing local production capacity in China makes us highly flexible toward our local cus-tomers in terms of our deliveries. For example, if VW’s requirements should go up, we will be pre-pared as a supplier.”

The new plant of HOERBIGER Drive Technology is located in Changzhou, approximately 100 miles west of Shanghai, in an industrial district set up especially for cutting-edge technology companies. In addition to the Strategic Business Unit Drive Technology, HOERBIGER Compres-sion Technology is also located in Changzhou. It primarily manufactures safety valves for ocean-going vessels.

The Changzhou plant offers the Business Unit Asia Pacific sufficient potential to grow with the customers from the automotive industry. At present, HOERBIGER is in negotiations with the industrial park to expand the production space yet again.

Gaining an Edge through Experience Business relations with the customers in China are based on trust and a technological edge. Dr. Huang, who studied mechanical engineering at Zhejiang University in Hangzhou—arguably one of the best in the People’s Republic—as well as at the TU Darmstadt in Germany, has several decades of experience in the drive tech-nology sector. He is convinced that the premium unique selling propositions of HOERBIGER, the largest independent provider worldwide of inno-vative synchronizer systems, will take a while to be imitated, even in China.

“We will continue to expand our position as a trailblazer for the delivery of complete synchro-nizer systems in the future. The combination of our friction lining expertise with our engineering know-how and our manufacturing technologies

allows us to offer the customer the best solution for the respective needs,” explains Dr. Huang. “Engineering expertise and system know-how are crucial to meet our customers’ require-ments. We now offer both locally in Changzhou with the new Tech Center Asia Pacific.”

HOERBIGER works closely with customers such as Volkswagen already in the product develop-ment phase. Their common goal is to offer top-quality products and services at competitive prices in order to assure the customers’ benefits and satisfaction in the long term.

Intercultural ProfessionalismChangzhou offers a qualified team of presently about 230 employees for this purpose, including seven “experts” from Europe.

With technical and intercultural skills, together the entire team accomplished in Changzhou what is contradictory to any Western preconcep-tion of “Made in China”: the local manufactur-ing facility was installed in accordance with Ger-man standards and requirements, using an initial investment of more than 10 million euros. The majority of equipment is based on modern machines that were imported from Germany.

All employees received extensive training to en-sure the professional production of synchronizer systems. Each employee was required to pass a special final examination. Moreover, Chinese employees who hold key functions in the new production operation were provided with inten-sive training in Germany. “Our strength is that we speak the local language, but technological-ly operate like Germans,” said Dr. Huang.

Among consumers in China, European engi-neering, and notably German quality and reli-ability, have a significant edge in terms of credi-bility. With its formula “German Engineering, Made in China”, HOERBIGER is well positioned for the requirements of the Chinese automobile market.

35 vehicles sold per minute? One would think this is beyond the realms of imagination. Not so in China, the largest automobile market in the world. More than 890,000 new cars were registered in 2010 in Beijing alone. 2012 is very likely to set a new record: six million passenger cars are expected to roll across the streets of the capital, which is presently home to an estimated 19 million residents and covers a metropolitan area approximately equivalent to the area of the German state of Thuringia. TExT: Ludwig Schönefeld · PHOTOS: Ingo Bulla

GERMAN ENGINEERING—MADE IN CHINA

HOERBIGER Drive Technology (Changzhou) Co., Ltd.

Dr. Zhen Huang has been the Managing Director of

HOERBIGER Drive Technology (Changzhou) Co., Ltd.

since 2012. The new site manufactures key compo-

nents for manual and double-clutch transmissions.

An important local cooperation partner is Volkswagen

Automatic Transmission (Dalian) Co. Ltd. (VWATD)

in Dalian.

042

043

InternshIp In ChIna

philipp Meindl definitely wanted to go to China; after all, the Peo-ple’s Republic is one of the largest economic powers in the world. He applied to HOERBIGER because he was fascinated by

the rapidly growing automotive industry and because the companies in the supplier industry play a key role. In addition, he was interested in the country and the people: “My father told me a lot about his travels to China,” Philipp Meindl reports. “It just piqued my interest to get to know a completely different culture and an entirely different style of work.” The internship, lasting from the end of September until the end of November 2011, provided ample opportunity.

“It was very exciting to

see how the individual

departments perform their

work and how the process

flows are designed.”

“nothing ventured, nothing gained,” philipp Meindl thought to himself when he, in september 2011, mailed an unsolicited application to hOerBIGer Drive technology (Changzhou) Co., Ltd. after earning his Bachelor degree in business administration from the University of regensburg, Germany, the recent graduate wanted to gather practical experience abroad before moving on to his Master’s Degree. after a few phone calls with hOerBIGer, he had the acceptance for the internship in the bag. Only two weeks later, the 22-year-old was on the plane, headed for China. also in his luggage was his camera—the enthusiastic amateur photographer never leaves home without it. text: Tim Wohlfarth · phOtOs: Philipp Meindl

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045

After arriving in Changzhou, he was accommodated at one of the facilities that HOERBIGER provides to its employees in the direct vicinity of the plant. An intensive trainee program followed at HOERBIGER Drive Technology (Changzhou) Co., Ltd. In the Sales Department, Philipp Meindl gained insights into project management; in Finance/Controlling he became familiar with the practical aspects of cost calculation and planning; and logis-tics processes and material planning formed part of his agenda in the Supply Chain Department.

“It was very exciting to see how the individual departments per-form their work and how the process flows are designed,” said Philipp Meindl. “But above all, it was great to see how closely everyone worked together as a team. It was fantastic to be part of the team. They welcomed me very warmly and I learned a lot.“

Communication, for the most part, was done in English, some-times in German and very frequently—when he was out and about alone in his spare time—with hands and feet. Because he lived “next door” to his Chinese colleagues, Philipp Meindl was able to acquire rudimentary basic Mandarin vocabulary. The Chinese class taught at HOERBIGER once a week for the staff from Germany that are employed locally was also helpful. “I can now confidently order a meal and perhaps clarify a few everyday items. But the Chinese characters are still a mystery,” says Philipp Meindl.

Philipp Meindl especially benefited from his newly acquired lan-guage skills on the weekends. He utilized his spare time to explore the country. He received tips from his colleagues, and they helped him purchase the train tickets. Afterwards, he was on his own.

He took the modern high-speed train from Changzhou through China, traveling at approximately 220 miles per hour. En route, Philipp Meindl met a wide variety of people and explored cities such as Shanghai, Beijing, Nanking, Suzhou, and Hangzhou.

Philipp Meindl laid down his camera only on rare occasions. Thanks to him, we received the impressive images shown on these pages: China in the fall of 2011.

www.philippmeindl.com

“It just piqued my interest to

get to know a completely different

culture and an entirely different

style of work.”

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047

T he view from the terrace on the 30th floor of the Hyatt on the Bund is something that nobody will want to miss. Pearl Tower, the colorfully illu-minated landmark of the city, is lo-

cated directly across; Jin Mao Tower, the sky-scraper with architectural features reminiscent of the Empire State Building in New York, is at eye level; and the crystal-blue structure of the World Financial Center sends countless strobes of light across the city.

The skyline of the modern district of Pudong is one of the most frequently photographed motifs in the world. And it’s a motif that changes con-stantly. The next high-rise is already under con-struction—Shanghai Tower. Over the next three years, the structure will grow to a height of 2,073 feet and surpass the “bottle opener,” as the Shanghai Financial Center is referred to, by an-other 460 feet.

Huangpu River, which separates the modern district of Pudong from the original city center around Nanjing Road, is heavily trafficked, even at night. After a portion of the former harbor was used to make room for the World Expo 2010, the frequency of oceangoing vessels has decreased considerably. This has significantly boosted the safety on this waterway. For international cruise ships, which increasingly call at the new termi-nal in direct vicinity of Shanghai, however, the docking process on the Huangpu is one of the most difficult nautical maneuvers compared to international inland waters because of the large number of barges that continue to plow these waters.

Tourists and locals marvel at the bustle on the river from the boardwalk of the Bund, which was widened in time for the World Expo. The magnif-icent embankment lined with administrative buildings of international banks and renowned hotels since the 1920s has become a world-class architectural ensemble since the extensive renovations of all structures over the last 15 years or so.

ThE CITy ThAT REAChEs fOR ThE sTARs shanghai is constantly evolving, pursues success and basks in the luster of spectacular high-rise facades. The people here trust in growth and a continued rise in prosperity. This comes as no surprise since the city has been growing at full speed for 20 years. TexT: Marcus Franken · PHOTOs: Papu Pramod Mondhe

The skyline of modern Shanghai.

The colorfully illuminated Pearl Tower

is a landmark of the city.

no Use for sentimentalityThe latest success of the musician Travie Mc-Coy “I wanna be a billionaire“ booms from the speakers along the boardwalk. Perhaps its title is the reason why this song by Travie McCoy is played so often here. It highlights the dream of affluence as a central theme. No city in China has been as consistently committed to econom-ic success as Shanghai. No city has experi-enced this kind of rapid growth. No city leaves its past behind for future success with such lack of sentimentality as the “city on the upper reaches of the sea”—which the Chinese signs “shang” and “hai” represent.

Just like Budapest is separated by the Danube into Buda and Pest, Huangpu River today di-vides Shanghai into Puxi inland and Pudong on the side facing the sea. Pudong is the most strik-ing symbol of Shanghai’s mind-boggling ascent to a financial metropolis, and China’s rise to a world power. Formerly, some 20 years ago, the area was primarily home to farmers who did an excellent job feeding the city from the wet

marshes and caught crustaceans in the drain-age ducts. At the beginning of the 90s, there was not a single multi-story building—not to mention skyscrapers—that would have prompt-ed tourists to pull out their cameras. There was only a bridge that led over Huangpu River. Fer-ries bore the main traffic burden. A tunnel un-derneath the river was inconceivable. Today, there are eleven.

prosperity for ChinaThe rapid awakening of the city began when un-der Deng Xiaoping (1904-1997) China’s govern-ment parted with the chaos from the Maoist times and in 1980 experimented with the first Special Economic Zones in the economically devastated country. Shanghai is Deng’s most compliant follower. Deng wanted prosperity for China: “It doesn’t matter if a cat is black or white, so long as it catches mice,” is one of his famous quotes.

In 1984, Shanghai was added to the list of coastal cities that were granted special econom-

ic liberties. Pudong’s turn would follow six years later. Since then, the cat has been catching more mice than anyone could have imagined; coastal villages mutated into megacities over night. What formerly were the routes of rick-shaws are now subway tracks with trains pass-ing at regular intervals; clay trails have trans-formed into freeways. Today, the larger Shanghai area is home to approximately 23 million people. Every day, new fortune seekers arrive from rural China. In China, the promise of a future is no-where more within reach than in Shanghai.

the World at eye Level Raindrops refract the light of the neon advertis-ing signs on Huaihai Road like millions of tiny diamonds. After business hours, the cars file down the road, Chinese couples and small groups stroll under the ostentatious stores of major luxury brands: the king of handbags, Louis Vuitton, has completely wrapped the entire building of its Shanghai branch in warm lights which alternately illuminate in red hot and then lapis lazuli blue hues. Cartier has immersed its

from Cupertino, California. It’s a kind of perma-nent consumer fair for Apple devices, which of course have been manufactured for quite some time now in a Chinese Special Economic Zone.

The Apple branch is more than just a place to see the coveted i-products up close. Here, peo-ple can also check their e-mails free of charge. For some customers, the Apple shop replaces the office.

One customer is writing a blog. “Formerly, I worked in the cafes with my laptop,“ she chats. In the new Apple branch, the Internet is not only less expensive and faster, the computers are al-so the latest and greatest. She brings her own tea and comes here almost every day. Until for-tune finds her. Or until she finds fortune.

structure in classy gray, which comes into its own in time for the evening rush hour of shop-pers. Here, on Huaihai Road, no luxury goods manufacturer wants to be absent: regardless of whether it is Swarovski, Tiffany, or Ermenegildo-Zegna.

The busiest shop on Huaihai Road is that of Apple. Little girls and gray grandfathers crowd behind the glass windows under the Apple logo. iPhone, iPad, iPod and MacBook constantly change hands. The Apple shop is a place of yearning for the Chinese who discovered the American Dream—where happiness from pros-perity and consumption seems to be attainable. “But we sell very little here,“ explains one of the young employees in a bright red T-shirt with his name printed across the front: Dave. The store is primarily exhibition space for the products

Huaihai Road is home

to numerous stores of

the major luxury brands.

This is also part of the

new Shanghai.

Huangpu River separates the modern district of

Pudong from the city center. The skyline is one of

the most popular photographic motifs, even

during the day.

The Apple store is a popular meeting point on

Huaihai Road. Many visitors come here to check

their e-mails or surf the web.

Administrative buildings of international banks and renowned hotels

have lined the embankment on the Bund since the 1920s.

tailor-made shirtsSouth Bund Fabric Market (Nan Waitan Qingfang

Mianliao Shichang) is one of the destinations that

many foreigners who live in Shanghai like to visit.

The city and its surroundings in the long run do not

offer them much of what they love about Europe or

the USA: be it culture in Paris’ cafes, sporting events

in New York or London, the grand Berlin Philhar-

monic or excursions into the urban hinterland.

The alternative: shopping. However, those who

come to China with the intent to purchase high-

quality computers or an iPhone at a low price will be

disappointed. The majority of brand-name products

are more expensive in China than in Europe. Cloth-

ing, however, is still a bargain.

And it goes like this: More than a hundred small stores offer tailor-made

clothing on three floors in the South Bund Fabric

Market. We tested this with shirts.

First, pick a small store that has beautiful fabrics.

The offerings are seemingly endless. We chose four

shirts: in white, blue and white, blue and brown, and

—with some courage – something in lavender.

Wang Shi Jian, the owner of the store, speaks hard-

ly any English. But that’s OK. The tailor’s language

revolves around centimeters, or inches, which Mrs.

Wang notes: the collar size, arm length, chest and

waist. In total she takes down ten measurements.

Then you have to select the shape of the collar, the

type of buttons for the sleeves and you have to let

her know whether the shirt should have a slim cut or

be loosely fitting. When all this has been settled, the

time for negotiations has come. The more shirts you

buy, the less expensive it will be. We purchased four

shirts for the equivalent of 12 euros each. Pick-up is

four days later. In return for a rush surcharge, a

24-hour turnaround time is also possible. But we’re

in no hurry.

The moment of truth has come: Do the shirts fit?

They smell strongly of dry cleaning, but they fit

perfectly. There is only one downside: because we

decided in favor of the slim cut, we can’t gain

any weight.

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Published byHOERBIGER Holding AGBaarerstrasse 186304 Zug, Switzerland

Internet: www.hoerbiger.comE-mail: info@hoerbiger.com

Executive BoardDr. Martin Komischke (Chairman)Charles FriessNorbert GaußJohann Hipfl Dr. Siegmar SchlagauGerhard Wagner

Commercial Register numberCH-270.3.003.156-2Commercial register of the Canton of Zug, Switzerland

Value-added tax number194 609

Edited byHOERBIGER Holding AGCorporate CommunicationsBaarerstrasse 186304 Zug, Switzerland

Ludwig Schönefeld (Director)Phone: + 41 / 41 / 560-75 79ludwig.schoenefeld@hoerbiger.com

Jens GeiselPhone: + 41 / 41 / 560-10 19jens.geisel@hoerbiger.com

Daniela Garsch (Editorial Assistance)Phone: + 49 / 8861 / 25 66-21 88daniela.garsch@hoerbiger.com

We would like to thank the following institu-tions and individuals—to the extent they are not mentioned as authors or photographers in connection with the articles—for their participation:China State Shipbuilding Corporation. Germa-nischer Lloyd: Stefanie Normann-Birkholz. GETRAG Group: Carmen Hickl, Vera Münch. Jiangsu Yawei Stock Co.: Zhibin Leng. MAN Diesel & Turbo SE: Christine Karl, Michael Melzer. Volkswagen Automatic Transmission (Dalian) Co., Ltd.: Zafer Celik, Thomas Ogos.

HOERBIGER Drive Technology: Wolfgang Beck, Changshan Gao, Silvia Grimmer, Franz Soffa, Huang Zhen. HOERBIGER Automation Technology: Norbert Poth, Allan Zhu. HOERBIGER Deutschland Holding: Nicole Thomsen. HOERBIGER Compression Tech-nology: Thomas Andexer, Kathy Boutin, Thomas Christl, Terence Chuah, Chuck Cooper, Hervé Ferraris, Thomas Halwachs, Ning Zhang.

TranslationsKerstin RolandMaintal Translations Inc.Virginia Beach, VA 23452, USA

Andrea Hartmann97074 Würzburg, Germany

layoutCP/COMPARTNERAgentur für Kommunikation GmbH45127 Essen, Germany

Guido Schweiß-Gerwin, Tim Wohlfarth, Carsten Cimander, Stephanie Globert

Cover picture: Shipyard in ChinaPhoto: Papu Pramod Mondhe

Printed byAlfred Aumaier GmbH82008 Unterhaching, Germany

Circulation: 25,000Distribution: 42 countries worldwidelanguages: German, English

The contents of the articles, in particular quotes, opinions and estimates on markets and technologies, do not always refl ect the opinions of the publisher.

Copyright: HOERBIGER Holding AG, 2012

Authors and Photographers1 Ingo Bulla (55) lives and works in Göttingen and Beijing. After 20 years with the local paper Göttinger Tageblatt, he became a freelance photographer in 1998. In addition to working for daily newspapers and magazines such as FAZ, Der Spiegel, manager magazin, or Stern, he specializes in portrait, news and industrial photography. To him, the art of photography is to carefully portray a situation without degrading it. He prefers to work with natural light. A port-folio of his work, which has received numerous awards and been exhibited in a variety of lo-cations, was published in the photographically illustrated book “Kontakte.” For HOERBIGER@Motion, he provided the pictures for the features about Yawei and Volkswagen.

2 Marcus franken (44) studied environmental technology at the TU Berlin and has worked as a freelance author since pursuing his degree. He has written articles for magazines and news-papers such as Spiegel, Stern, Zeit, VDI Nachrichten, Geo Epoche or Greenpeace Magazin and is the editor-in-chief of zeo2 magazine. His focal areas are topics from the fields of ener-gy, environment and science. For HOERBIGER@Motion, Marcus Franken provided features about Shanghai and the shipyards located there.

3 Papu Pramod Mondhe (39) studied photo design at the University of Art in Bremen, Germany, and under a scholarship at the International Center of Photography in New York. By working with magazines such as Geo, Geo Wissen, and Zeit Wissen, as well as the Die Zeit weekly paper, he made a name for himself internationally with industrial, cultural, travel, and commercial photog-raphy. Topics that were of particular interest to him related to the interface between Europe and Asia. His motto is: “Photography is a wonderful reason to interfere with matters that are really not your business.”

4 ludwig schönefeld (47) is the Head of HOERBIGER’s Corporate Communications. Besides strategic tasks, he has retained the latitude to return to his journalistic roots through industry features for HOERBIGER@MOTION.

not rich, but satisfiedThe class of Chinese who can truly afford the temptations on Huaihai Road is small. Half of China’s 1.3 billion citizens live in cities. In Shang-hai, they typically inhabit small apartments in the endless landscape of tall buildings spread-ing from the center in all directions for dozens of miles. Yet the memory of the poverty in the countryside is still fresh in many families, and the majority of these 1.3 billion Chinese thus feels that they already hold a sizable piece of prosperity in their hands.

While China formerly was an agricultural country, half the population lives in the cities today. Ac-cording to a study conducted by the U.S. Pew Research Center, the predominant majority of them—87 percent—is “satisfied” with the state of their country, and 91 percent also consider the economy to be in “good shape.” In comparison, the numbers range between 20 and 40 percent in Central Europe and the USA. The weekly Die Zeit once referred to Deng Xiaoping as the “most successful person to fight poverty of all times,“ given the sustained economic boom now lasting

for more than 20 years. According to World Bank, 400 million people escaped poverty because of his policies and no longer have to make do with less than one dollar per day.

progress and Growth MatterToday, economic growth is the measure of all things in China. In Shanghai in particular, prog-ress unsentimentally eats through everything that is left of “Old China.” It takes just ten min-utes by car from sparkling Huaihai Road to get to a few streets lined by old single- or double-story houses within the boundaries of the old city wall, which today can be found on the map only because of the ring-shaped Renmin and Zhongua streets. There, ducks quack in open crates, doves coo in cages and chickens cackle in the street markets. Long bamboo rods extend from the short houses into the alleys, with laun-dry drying on them. Some stores offer live fish and crabs from short plastic crates. Hundreds of frogs sit silently in green nets, and crabs wait for their cooks with their legs tied together. Steam rises from the kitchens of the dim sum stores; the steamed buns sell well from early morning

well into the evening. Here, Shanghai’s inhabit-ants languorously push and shove their way through the cheerful hustle and bustle.

At the end of the street, the excavators have just removed another three hundred feet of old town. Now, the workers remove the rubble of the houses to make room for the foundations of the next high-rise building.

Preserving old quarters was previously not part of the future draft of Shanghai 2020, which is displayed in the Urban Planning Exhibition Cen-ter at a scale of 1:200. The old stone gate hous-es, called shikumen, formerly always had to make way for vertical growth—until a few artists discovered the old stone gate houses in the al-leys of Taikang.

history for touristsThere, again just a few minutes by car from the open markets of the old town, tourists will finally find what they hoped for in China: the shikumen have been restored, galleries and shops have been set up, and tourists can find high-quality

photos, Chinese-red tins, colorful ceramics and all sorts of souvenirs and arts and crafts.

All this despite the fact that the stone gate hous-es of Taikang Lu were supposed to be long gone. “It started around 2001, when some artists opened the ‘Commune’ bar,” James Cornell ex-plains, who now operates the small boutique “Nuzi” between the old residential and ware-house buildings. “Actually, the entire quarter was scheduled to be torn down.” Taikang used to be a very run-down ward. Entire families often-times lived in a single room, separated from the next family only by a poorly sound-proofed wall. There was no running water. What for? The au-thorities wanted to tear everything down, includ-ing a tower building. Just like it happened in the neighborhood where now a huge shopping cen-ter has taken the place.

But then the first few galleries opened around “Commune“ and the artists told the city, “We want to stay.” “The authorities allowed the ex-periment,” says Cornell. The young people transformed the decrepit old town into the pic-

Artists, students, and

gallery owners once

discovered the formerly

run-down ward of Tai-

kang. Today, the pictu-

resque neighborhood is

a tourist attraction.

“Old China” is also still alive in

Shanghai. The picture of old town

is shaped by cook shops and

sales booths.

turesque quarter which now is one of Shang-hai’s tourist attractions. Cornell himself arrived in 2004; he is a New Zealander with Chinese roots and in his store Nuzi sells high-quality arti-sanry—exclusively made in New Zealand. Now, there are approximately 200 shops similar to his. The experiment was a success. Success de-vours its fathers.

The artists, students and bohemians have long moved on. Rents are on the rise, and the small galleries’ success has long been copied by sou-venir shops. They make more profit and dis-place the pioneers. The quarter is thus losing its artistic luster. But today, nobody mentions tear-ing down these old houses any longer. After all, according to the rules in Shanghai, success is allowed to stay.

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