Kuka breaks ground for robot plant in China

Global automation-solutions provider KUKA AG laid the cornerstone for a new plant in Shanghai on Friday.

The production facility, which will be only factory outside KUKA's home country of Germany, is dedicated to meeting the soaring demand for automation solutions in this region, CEO Till Reuter said at the groundbreaking ceremony.

When the 20,000-square-meter plant is operational, which is expected to be by the end of next year, the company will mass-produce the KR Quantec robot series and the KR C4 universal controllers, which were launched last year and widely applied in the automotive industry.

The annual production capacity will be 3,000 units in the first year and is expected to grow to 5,000 units by the end of 2015.

Originally designed to serve all Asian markets, production from the new factory will barely be enough to feed the soaring demands for robotics in China.

KUKA's Shanghai-based China operation has been in the country 12 years, and has four distribution and service centers. Last year, sales in China doubled to 18,000 units, making the country its largest market.