Foreign firms upgrade plants as demand surges

Foreign investment in Shanghai is on the rise as China's economy has begun to pick up since the end of last year.

Songjiang, with its sound business environment, strong economic tenacity and integrated industrial chains, is rolling out the red carpet for investors.

Many foreign-invested enterprises in Songjiang District are upgrading their factories, which primarily manufacture for the international market, into major production bases in China.

"Our company places a high value on the 'dual circulation' of domestic and international markets," said Ruan Peng, operation manager of Standex-Meder Electronics Shanghai.

"Previously, the market share in China was approximately 40 percent, but it has now increased to around 60 percent."

The American firm is the world's largest reed switch manufacturer, producing over 700 million reed contacts per year.

VALQUA Shanghai is the Japanese company's second production base in China. It designs and manufactures a variety of raw materials, such as fiber, fluoroplastics and high-performance rubber.

The company reported a significant jump in sales. In 2021, its sales revenue doubled from the year before. Despite a two-month shutdown due to the pandemic, sales in 2022 were up 21 percent from the previous year.

Dodge (Shanghai) Mechanical Power Transmission Ltd, which has a plant in Songjiang, is a latecomer to the Chinese market. The American brand quickly established strong bonds with local consumers by opening a Chinese website and a WeChat official account.

"Dodge Shanghai serves as the Asia-Pacific hub," said Hu Qingsong, sales director of the Chinese market. "The Chinese market accounts for 80 percent of the Asia-Pacific region, with the rest going to other regions."