Schneider Electric uses its Chinese base as a global example

After 38 years in China, French industrial conglomerate Schneider Electric has transformed its presence in the country from a manufacturing base into its second-largest market and a vital center for innovation and manufacturing excellence, a senior company executive said Wednesday.

"China has evolved from being just a manufacturing base to becoming a source of innovation for Schneider Electric globally," said Mao Feifei, general manager of Schneider Shanghai Industrial Control Co Ltd.

"We're seeing increasing instances where innovations developed in China are being adopted across our global operations."

The company has built 23 factories, 7 logistics centers and five research and development centers in Beijing, Shanghai, Xi'an, Shenzhen and Wuxi, making China one of its four global R&D hubs.

The company's Shanghai facility, which incorporates high-end technologies like big data, 5G and artificial intelligence to enhance productivity, was recognized as an end-to-end "lighthouse factory" by the World Economic Forum. This designation acknowledges its efforts in implementing innovative industry technologies and sustainable manufacturing practices.

"Shanghai offers unique advantages in terms of supply chain efficiency, talent pool and support from the local government," Mao said, emphasizing the city's role in the company's growth.

At the "lighthouse factory", Schneider Electric has implemented a human-machine-intelligence integration approach. While the facility operates at a 74 percent automation rate with over 100 robots, the company emphasizes the irreplaceable role of human workers, particularly in areas requiring flexibility and decision-making.

"We don't aim to replace humans with automation. Instead, we focus on empowering our workforce through technology," Mao added.

The company has also implemented comprehensive training programs to upskill its workforce, including both blue-collar and white-collar employees.

Sustainability is another core focus. The Shanghai facility sources 30 percent of its annual electricity consumption of 3.3 million kilowatt-hours from solar power, demonstrating the company's commitment to green manufacturing, according to Mao.

"The company's success in China has led to significant contributions to Schneider's global operations, especially in terms of talent, production and technologies," said Mao.

Chinese innovations are increasingly being adopted across the company's factories worldwide, which includes advanced manufacturing solutions and automation technologies initially developed and tested in Chinese facilities.

Looking ahead, Mao expressed continued confidence in the Chinese market: "The open and transparent business environment here continues to provide opportunities for innovation and growth.

"We look forward to developing more products and solutions that serve both the Chinese market and our global operations."