Schott charts fresh investment plan

With China entering a new era of innovation-driven and green-led growth, German specialty materials manufacturer Schott AG plans to invest more than 60 million yuan ($8.4 million) in Suzhou, Jiangsu province in the coming months, said a senior executive.

Upon full completion and ramp-up, the project aims to generate an annual output value of more than 1 billion yuan in China by 2030, covering new manufacturing capacity, research and development, and local technology deployment.

Describing the investment plan as both "strategic" and "inevitable", Salvatore Ruggiero, vice-president for marketing and communication at the Mainz, Germany-headquartered group, said the decision is fueled by China's vast market size, strong innovation momentum, rapid emergence of new industries and growing potential for exports.

As China is about to enter the 15th Five-Year Plan (2026-30) period, Ruggiero said the nation's policy emphasis on new energy vehicle technologies, advanced electronics and healthcare solutions matches the company's core strengths.

"The investment will be concentrated primarily in Suzhou, where Schott already operates key manufacturing and application centers," he said. "We can't fully understand China's market from Europe. We need to innovate in China, with Chinese engineers, for Chinese customers."

To strengthen local supply chains and support innovation in China's automotive industry, Schott's electronic packaging division launched a new production line in Suzhou in June. The new line focuses on producing key sealing components for airbag systems and new energy vehicles.

The executive confirmed that Suzhou has been selected for expansion due to factors including a solid base of engineering talent, proximity to major Chinese partners and customers, and the ability to collaborate closely with the company's Shanghai commercial office.

"Beyond Suzhou, we are also evaluating additional future capacity in Fuzhou, Fujian province, and possibly Southwest China, depending on downstream demand," he added.

Schott provides specialty materials for key components such as ignition systems and sensors for electric vehicles. With EVs now visible "on every street", the company believes China has become a top priority for new investment, including expanded local material production.

Eager to seize more market share, Schott is also developing advanced glass-based materials to support artificial intelligence computing and semiconductor growth, and will produce high-precision materials for advanced medical technologies in China. In pharmaceuticals, it is developing low-carbon tubing technologies to meet rising healthcare demand under the Healthy China 2030 initiative.

Currently, about 90 percent of Schott's products made in the country are sold domestically, but the new investment will enable exports to Southeast Asia, South Korea and Japan. Still, Ruggiero emphasized that China will remain the company's top priority, adding: "When we have capacity beyond local needs, we will export."

Established in 1884, Schott, supported by 17,400 employees in more than 30 countries and regions, saw its sales revenue reach 2.8 billion euros ($3.24 billion) in its 2024 fiscal year.

Despite mounting geopolitical headwinds, China's strong economic resilience, ongoing business-friendly reforms and rising innovation capacity continue to underpin its role as a stabilizing force in the global economy. These strengths are helping to cushion external shocks and sustain growth momentum, said Gao Lingyun, a researcher at the Chinese Academy of Social Sciences' Institute of World Economics and Politics in Beijing.

zhongnan@chinadaily.com.cn