Industry dynamics

UFI Group Goes West: UFI to open new Chongqing plant in support of China’s OBOR initiative

Publishtime:2019/08/16 Views:31

UFI Group Goes West:  UFI to open new Chongqing plant in support of China’s OBOR initiative

Today, the UFI group announced the opening of UFI Group’s first manufacturing plant in western China. Located in Laingjiang’s New Development zone in Chongqing, the new facility will see UFI invest over 106 million RMB in the region in a renewal of their commitment to the Chinese automotive manufacturing industry. The plant, which is due to commence operation at the second quarter of 2018, will produce diesel filters, diesel pre-filters for heavy-duty manufacturers & air-intake systems for passenger vehicles in Chongqing, Chengdu, Wuhan and for export to Europe.

The expansion of the UFI Groups operation into western China, also expresses the UFI groups support of the government’s development policy, which is on course to be met by 2020,  through the provision of 200 jobs in the region and new centre to better serve the export market.

Commenting on the future of the Chinese automotive industry, Luca Biagini, UFI Group Asia-Pacific COO said “we continue to see strong growth potential within the Chinese market and the potential for overseas expansion too.” Outlining why Chongqing was chosen to establish a new plant, he said “ The region is set to become an important vehicle manufacturing centre in China as well as being an important logistics base and distribution centre in the western region. In addition, having the plant in Chongqing will not only mean we can better serve our customers in the Western China and Europe, but also support the government’s OBOR initiative which will see Chongqing as a major hub in years to come”.

UFI Group Goes West:  UFI to open new Chongqing plant in support of China’s OBOR initiative

According to the statistics, Chongqing is an important location for auto parts manufacturers, the Liangjiang New areas planned car production output is expected to reach 3.5 million units by 2020, which will account for 70% of Chongqing’s planned 4.7 million automotive production capacity. Thus, having a facility in this region will further support UFI Group’s expansion and growth in China.

Entering China in 1996, UFI Group set up Sofima Automotive Filter (Shanghai) Co., Ltd in Qingpu, Shanghai to meet the growing demands for filter products in the Chinese market. Since then the company has established three more plants in China, respectively Sofima Automotive Filter (Changchun), UFI Filters (Shanghai), SOFIMA Industrial Filters (Shanghai),one R&D Centre, more than 2,200 staff, and produces about 154,000 filters in China every day. Every month, around 100 containers are transported to overseas markets such as Europe, North America, Japan and Australia. Many world famous LV automotive groups choose UFI filters made in China, including VW, GM, Hyundai, Ford and FCA, etc. 6 out of 7 of the major worldwide car manufacturer choose UFI Filters. 

Established in Italy in 1972, UFI Group, with its two brands UFI and Sofima, are now represented in 12 countries, 4 continents and employ over 4,000 employees in more than 20 front offices. UFI Group has been providing filters for racing since 1980s and has also provided filters for the F1 Ferrari team for nearly 17 years with  nine out of eleven F1 teams currently using UFI filters. In 2016, the group produced 68 million filters across their 14 production sites creating turnover of €415 million; maintaining UFI’s 12 % sales growth which it has achieved since 2009.