SFS is to spend CHF 32 million (€29.5m) to expand its production platform in Nantong to build capacity for future growth.
Floor space will more than double (70%) to 130,000m² in total and is expected to be commissioned autumn 2023. The Nantong site is already SFS' second largest site.
The move comes just three years after the production site was first built, which has all SFS core technologies under one roof, including cold forming, stamping, machining or extensive surface finishing treatments. The Riveting division's production relocated from Nansha, China to Nantong in the first semester 2021. The Nansha site was sold following the relocation.
The continued growth of the Electronics division in the areas of mobile devices and lifestyle electronics as well as the increasing demand for production capacities from other divisions, including the automotive division, are the main drivers for the development.
Construction, for which additional land was bought, is expected to begin Q1 2022.
The Group said: "Thanks to this extension, SFS will further strengthen its competitive position and be able to provide sufficient capacity to realise attractive projects and future growth in China with local customers."
SFS recently acquired construction fastener specialist Jevith A/S in Denmark. SFS, owner of Gesipa and a majority stake in Heco, has raised its expectations of 2021 financial perormance following increased demand.