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How a billion-dollar Chinese company is stepping on the gas in Gleisdorf

The company premises are unspectacular and almost hidden, the office building is inconspicuous, instead of a reception area there is a telephone – even many locals are unlikely to know the “Austria Druckguss” company in Gleisdorf. The company’s history is dazzling and the future is also exciting. Not least because the company belongs to the Chinese billion-dollar company “Zhongding Group” and is managed by a close relative of the company’s founder, Dinghu Xia.

Tianli Xia took over the management of the plant shortly before the outbreak of the corona epidemic. Aluminum castings are produced there, primarily for the automotive industry. The parts are installed in vehicles of the Renault, VW and Audi brands, among others, and customers also include corporations such as Magna and Thyssen. Tianli Xia has been responsible for the company since 2019 – and since then it has operated almost continuously in economic emergency situations. Covid-19, the Ukraine war, chip shortages, energy crisis, high raw material prices and a difficult search for suitable workers: the last five years have been anything but easy for the Chinese-born woman, who came to Germany to study in 2009 and headed the companies “SchmitterGroup” and “Vincenz Wiederholt Group” (they also belong to “Zhongding”).

“The last few years have been hardcore. But the advantage is that we are prepared for further crises,” says the 38-year-old. After the takeover by the Zhonding Group in 2016, more than 50 million euros were invested in the plant, according to Tianli Xia. “There are new buildings and new machines.” A huge die-casting machine costing around four million euros is to be purchased. A logistics hall could be built at the end of the year.

The site is flourishing: around six million parts are produced every year. These weigh between 100 grams and almost four kilograms and are needed for steering systems, engines and transmissions in vehicles, but also for pumps and photovoltaic systems. With a young production manager from Xia’s home country, many processes are being redesigned and production is to be further optimized. A Chinese partner is being brought on board. New products are to be manufactured.

Start as a bicycle producer

Almost 50 years ago, Gleisdorf took a completely different approach: in the early 1970s, the “Silver Parts” factory was built at the site: bicycles were manufactured there. Business did not last long, however, and the company slid into insolvency. However, in 1976, Renault President Bernard Vernier-Palliez and Vice Chancellor Hannes Androsch opened a new production facility for Renault there. In 1989, Renault sold the factory to the new state-owned metal producer AMAG. In 1993, the company sold the loss-making factory to the Munich-based Mössner Group, and in the following years Siemens and Lamborghini also acted as clients.

In 1999, the Swiss Georg Fischer Group took over the plant, followed by the financial investor Bavaria Industries in 2009. Nikolaus Szlavik (today’s ADA boss) became managing director in 2012. Zhongding finally joined in 2016. At that time, the plant had around 60 temporary workers and 200 permanent employees. Today there are around 180 (40 of whom are salaried employees). Annual sales in 2023: almost 31 million euros. Up to 30 tons of aluminum are processed every day.

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