Ryder Industries to Expand into Inland China

Ryder Industries’ new manufacturing facility will not only provide state-of-the-art production capabilities and environmental impact management, but it also will promote economic development further westward into China’s poorer inland provinces. The new 70,000 sq m manufacturing complex will offer fully integrated plastic injection, screen printing and painting capabilities as well as SMT/PCBA and box-build under one roof. Additionally, it will accommodate more than 3,000 employees within five years. Designs for the new facility take into account environmental technologies such as rainwater harvest, renewable energy, waste management for low carbon consumption and energy efficiency.



The site chosen by Ryder for this major new facility is located in the town of Xinfeng, which is in the Jiangxi province, a four-hour drive from both Shenzhen and Guangzhou, and close to Heyuang and Shaoguang ― two rising stars of China’s manufacturing sector.



For manufacturers, Xinfeng represents significantly lower operational costs than Shenzhen, as well as fewer government regulations. Manufacturing jobs at Ryder and other companies frequently are filled by migrant workers from China’s less developed inland areas; therefore, the factory in Xinfeng will allow its workers to live closer to their families, an increasingly important consideration as workforce stability and opportunity gain importance in the Chinese growth agenda.



“Most Chinese dream and hope for prosperity,” explained Ryder industries’ CEO ST Lei. “Our decision to move inland will help spread prosperity to rural areas and provide a stable workforce for the future.”



Ryder’s decision to expand its operations inland is in accordance with the thrust of Chinese government policy. Today, Chinese policymakers primarily are concerned with reducing the severe inequalities that exist between the industrially developed, prosperous eastern provinces and the less developed western provinces. Restoring the imbalance is seen as key to promoting growth without worsening inflation. When China’s leaders meet in legislative session this year, party delegates will focus on how to boost the living standards of lower-income sectors of Chinese society, mainly concentrated in rural areas, with the long-term goal of increasing the role of domestic consumption in the Chinese economy.



Ryder currently is leading workforce training and project transfer programs, including the establishment of the rigorous processes and quality standards for which the company is known. As these challenges are met, other supply chain and logistics issues will be resolved. The company expects the manufacturing campus to be fully operational within the next 24 months