Robots march into China's factories

By He Wei in Shanghai (China Daily) Updated: 2014-06-04 06:58

Robot sales in China soared 36 percent on average from 2008 to 2013, according to the IFR, as the automation boom among Chinese manufacturers presented tremendous opportunities for robot makers.

Sales in China reached 2 billion yuan ($324 million) last year for German robot manufacturer KUKA AG, which accounted for one-fifth of its overall revenue, said Chief Executive Officer Till Reuter. He said that urbanization, which enables older, rural households to enjoy a modern lifestyle, generates huge demand for domestic robots.

Strong investment in automation will continue to increase productivity and achieve more environmentally friendly production processes, said Sun Zhiqiang, managing director of Guangdong Risong Electrical Equipment Group.

China has vast growth potential for robots. Compared with highly automated countries such as Japan, South Korea and Germany, with robot densities in the manufacturing industry ranging from 270 to 400 industrial robots per 10,000 employees, the density in China is relatively low at about 20.

To reach comparable levels of robot density, about 1 million new robots would have to be activated in the coming years in China, the IFR report said.

Demand is being driven in part by Chinese original equipment manufacturers, notably from the vehicle sector. Reuters had reported earlier that companies such as Great Wall Motors Co Ltd and Geely Automobile Holdings Ltd could lead the next surge in automation

In the long run, further growth in China will be achieved as technology opens up new industries to the use of robots, said IFR President Arturo Baroncelli.

China still relies heavily on imported robots. From 2014 to 2016, robot sales by foreign producers will gain momentum and increase by 15 percent every year, reaching about 38,000 units in 2016, according to the IFR report.

Domestic companies still can't meet international standards in critical robot sectors, such as motors, bearings, reducers, casting and software development, Sun said.