This photo taken on Nov. 2, 2023 shows the exterior view of the National Exhibition and Convention Center (Shanghai), the venue for the upcoming sixth China International Import Expo (CIIE), in Shanghai, east China. The sixth CIIE is scheduled to take place in Shanghai from Nov. 5 to 10. The preparation work at the National Exhibition and Convention Center (Shanghai) has entered the final stage.(Photo: Xinhua)

German companies are mulling more investment in China, with their concrete measures taken to show confidence in the Chinese market, rebutting so-called 'leaving China' hype.

KSB Group, a Germany-based company which mainly produces pumps and valves said that it will build a new factory with an investment of 20 million euros ($21.69 million) in Shanghai, part of the move to show it is sticking to Chinese market. 

The factory will cover an area of 80 million square meters for petrochemical special pumps and standard pumps, and the factory is expected to be operational in July this year, increasing its pump production capacity by nearly 300 percent.

Achieving great success in China can be seen as a milestone, as the vast Chinese market is crucial to the company, Ralf Kannefass, CSO of KSB Group said recently in Shanghai. 

First entering China in 1994, KSB started business in China 30 years ago. "We are proud to be rooted in China for those years, and the pace is in line with China's opening-up," He Jun, President of KSB Asia North said. 

"Thanks to the development of China's nuclear power market in recent years, all our Chinese companies are profitable. This is a very gratifying state. This is a big improvement compared to four years ago," He said. 

KSB China achieved a sales performance of 3 billion yuan ($422,553) in 2023, accounting for 12 percent of the entire company's revenue. 

KSB China is a small picture of German companies' footprint in China. German multinational chemical company BASF earlier this month celebrated the inauguration of its Thermoplastic Polyurethane (TPU) plant at its Zhanjiang Verbund site in South China's Guangdong Province.

The new plant is the largest single TPU production line for BASF globally. It will help to meet market demand in industrial, eMobility and new energy segments, the company said.

The plant will enable BASF to meet the growing market demand for TPU in Asia Pacific, as well as bringing it closer to key customer industries in China and Asia Pacific, said Martin Jung, BASF president of performance materials.

A Reuter report said that the proportion of German firms exiting the Chinese market or considering leaving the market has more than doubled to 9 percent in the past four years.

There has a strong connection between German companies and China, with two-way communication and interaction between Chinese companies making a significant contribution to Germany's GDP growth, Kannefass said. 

"In my view, German companies, including many companies in Europe, should continue to invest in China. KSB will continue to invest in talent, factories and entire business scope of China, which is in line with company's global development strategy," he said.