Companies turning to automated, intelligent production

Transformation toward automated production has been one of the most important lessons that foreign companies in Shanghai have learned as they resume work after the novel coronavirus outbreak.

German medical technology company Siemens Healthineers has seen more than 70 percent of its employees return to work at its China offices and facilities. The factory's production capacity has largely recovered while many employees are either taking onsite shifts or working from home via digital solutions, said Wang Hao, president of Siemens Healthineers China.

"We are working overtime to produce CT machines and mobile X-ray machines which are still in huge demand for prevention and control of the epidemic. We have maximized our capacity for such machines in China in order to meet the demand of Chinese clients first," Wang said.

A lesson from this outbreak is the importance of automation and intelligent production, which the company has implemented for years, Wang added. The delivery of raw materials via robots used in its factories, for example, is very much valued at present and helps avoid close contact among staff.

"More importantly, we will invest more to develop digital medical solutions, artificial intelligence and telemedicine services so that medical technologies will be more convenient and feasible," he said.

Zang Chungao, deputy general manager of automotive seating manufacturer Yanfeng Adient, also agreed that the epidemic will likely accelerate companies' transformation to automated production.

"It is more evident after the epidemic that the manufacturing industry should be less reliant on human labor while investing more in automated production lines and solutions," he said.

The China-United States joint venture saw 86 percent of its 1,850 technicians and management get back to work by Feb 20. Its Shanghai plant had returned to full capacity by Feb 24. For its plants outside Shanghai, 84 percent of employees have returned to their positions. A full recovery in capacity is expected by the middle of this month, Zang said.

"Although our current capacity can meet our daily demand, it is not on par with our normal level, which is largely due to the changes in our clients' production plans. It is certain that the epidemic will exert an impact on our production in the short term. But the loss in February is sure to be recovered in the following months," he said.

According to the Shanghai Municipal Market Supervision and Administration Bureau, nearly 70 percent of the 51,000 foreign companies in Shanghai had resumed work by Feb 21. Up to 93 percent of the multinational companies' regional headquarters had seen their employees back to work.

Among the 697 key foreign companies monitored by the Shanghai Association of Foreign Investment, more than 90 percent of service sector companies are now running normally while 70 percent of manufacturing companies have picked up production.

The municipal government of Shanghai introduced on Feb 8 a total of 28 policies to support the normal operation of companies, covering fiscal subsidies, favorable taxes, rent reductions and postponed social security payments. Multinational companies can also benefit from these policies.