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Rugao company sees 14% growth amid pandemic

en.nantong.gov.cn| Updated: April 30, 2020 L M S


Workers are busy at a manufacturing plant of WEG (Jiangsu) Electric Equipment Co in Rugao. [Photo/WeChat account: RGETDZ]

As many companies suffer due to the novel coronavirus outbreak, WEG (Jiangsu) Electric Equipment Co in Rugao, Nantong has seen a 14-percent year-on-year increase in orders in the first quarter of this year.

"Four production lines have been working at full capacity since the beginning of March. Output in the first three months was valued at more than 90 million yuan ($12.76 million)," said Zong Xin, a spokesperson for the company.

WEG is a foreign-funded company that mainly produces electric machinery and 60 percent of its products were exported to countries such as Germany, Italy, and Japan. However, the domestic market is now gaining an upper hand.

"Overseas orders increased 6 percent, while domestic orders increased 20 percent," said Zong.

Since the company resumed operations on Feb 11, employees have been holding video meetings with clients every day to learn about their needs. The company has also shifted its focus to meet the growing domestic demand for protective machinery.

In addition, thanks to its efforts to promote intelligent manufacturing over the past few years, the company's production efficiency has improved by 15 percent and expenses have been reduced by 30 percent.

Last year, the company spent 15 million yuan in research and development, ensuring that its products meet international standards. An automatic production plant is currently under construction and is expected to begin operating in June.

According to Zong, the company will invest another 60 million yuan this year in the upgrading of production techniques. Annual sales revenue is expected to grow 30 percent in 2020 to 600 million yuan.

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