FLSmidth’s business unit in Qingdao, China, has celebrated the start-up of construction for FLSmidth’s new production facility situated some 30km from the existing factory. A traditional groundbreaking ceremony was held on the new FLSmidth site in Jiaozhou, Qingdao.
Since 2001, the capacity of FLSmidth’s machine factory in Qingdao has been doubled twice. The construction of the new facility with an impressive size of 36,000m2 marks a tripling of FLSmidth’s production facilities in Qingdao. FLSmidth’s in-house manufacturing in China offers a means for growth in the domestic Chinese market as well as it is home for internal sourcing of quality components at lower costs also for international cement and minerals projects.
Preparations for the construction have been on-going since the middle of 2010 when FLSmidth’s Board of Directors approved the budget for the new production facility. The contract to purchase the land for the new facility was signed on 25 November, and contracts with local construction companies were finalised on 7 December.
The groundbreaking ceremony officially marks the start-up of construction. A great number of local officials attended the event, accompanied by local television and other news media, signifying the importance of the local business community to FLSmidth Qingdao. The ceremony took place at the construction site, and the highlight of the ceremony was the symbolic covering of the groundbreaking stone, where soil was shoveled onto the stone. The groundbreaking stone will later be buried under the new buildings as a symbol of good luck to FLSmidth’s new production facility. The construction of the new facility will be completed by the end of 2011.