KES China Facility Operational, Driving Localization and Embracing Chinese Market

CHANGSHU,China,June 12,2023 -- On May 19,Koch Engineered Solutions (KES) held an opening ceremony for its first manufacturing facility in China,located in Changshu,Jiangsu Province. The Changshu manufacturing plant utilizes the latest generation of automation and manufacturing capabilities and is uniquely designed to produce our full product line. This facility will also bring design,engineering,and service capabilities to our local customers as part of this initiative. The opening marks a significant milestone in KES' localization process and demonstrates the firm's strong confidence in the development of China's green industry,technological innovation and the market's future potential.

Dave Dotson,President of KES,Dan Haycook,President of KES Equipment Technology & Services (ET&S),David Chang,Vice President of KES ET&S Asia Pacific,and Chen Guodong,Member of Changshu Standing Committee,Deputy Secretary of the Changshu Economic & Technological Development Zone (CEDZ) party Working Committee and Deputy Director of the CEDZ Management Committee,were among the distinguished guests who attended the commissioning ceremony. The presence of KES' valued customers and partners added significance to this important moment.

KES to increase its investment in the key international market

KES is the world's leading manufacturer of mass transfer and combustion equipment and is part of Koch Industries,Inc.,one of the largest privately held companies in the world. With its entry into the Chinese market in the 1980s,KES has been dedicated to technology licensing,combustion and emission control,mass and heat transfer,separation and digital solutions. By offering comprehensive one-stop solutions,KES seamlessly integrates engineering,manufacturing,installation,testing and maintenance to cater to the diverse needs of its users.

The 60,000-square-meter facility is KES' first wholly owned facility in China and is located in the Changshu Economic & Technological Development Zone. The strategic plant is poised to provide robust support to KES' operations in the country,bolstering its position in the region. "Over the past few decades,KES solutions have been integral in helping create world-class chemical capabilities. We are excited to further expand our footprint and better serve our customers by adding a new plant," said Dave Dotson,President of KES.

With over 40 years of experience in the Chinese market,KES possesses a profound understanding of the sector's opportunities and challenges. With the green industry and technological innovation leading the way,China's post-pandemic economy is poised for immense market growth. KES remains steadfast in its confidence in the Chinese market and will continue to explore growth opportunities. Speaking at the ceremony,Dave Dotson said,"This investment reflects KES' strong confidence in the future potential of the Chinese market,which has long been identified as a crucial market for our business. The Chinese manufacturing facility is integral to supporting our global operations and creates virtuous cycles of mutual benefit with our partners within the industrial value chain."

Combining local resources and teams with world-leading technology

The KES China manufacturing facility showcases a fully automated production line that integrates the latest generation of KES automation and manufacturing technology to ensure the delivery of globally consistent,high-quality products and technologies. It is one of the most sophisticated manufacturing facilities of its kind,capable of manufacturing and supplying a range of KES products,including burners,flares,and thermal oxidizers under the John Zink Hamworthy Combustion brand and trays and internals under the Koch-Glitsch name.

The dedicated teams at the KES China manufacturing facility collaborate seamlessly across borders to drive constant advancements in manufacturing,not only by adopting new equipment and technologies but also by establishing advanced flow testing centers to satisfy the market's increasing demand for equipment performance. Dan Haycook,President of KES ET&S,said,"KES is committed to providing the manufacturing industry with cutting-edge technology while enhancing its design,project management and service capabilities. By leveraging global expertise alongside local resources,KES strives to deliver superior mass and heat transfer solutions,as well as combustion solutions that truly surpass customer expectations."

Currently,KES works with Chinese multinational,state-owned and private companies operating in diverse sectors including the chemical,petrochemical,refining,oil and gas,iron and steel,food and beverage,and pharmaceutical industries. With the establishment of the KES China manufacturing plant,the company has significantly enhanced its ability to deliver products swiftly and flexibly. Moreover,the strategic investment deepens KES' localization initiatives and strengthens its ties with the Chinese market. By leveraging the advanced facility,KES is able to provide more efficient and attentive production,testing,and aftermarket service,meeting the evolving needs and expectations of its valued customers.

Driving sustainable development through innovative and environmentally conscious solutions

Amidst the emergence of Digital China and the pursuit of Dual Carbon targets,China's green industries and technological innovation have gained significant momentum. As a company dedicated to environmental responsibility,KES is well aware of the demand and potential for renewable energy in the Chinese market. With expertise in carbon capture and reduction,energy efficiency and emission reduction,renewable energy,and water treatment,the company is poised to support China's energy industry in achieving China's sustainable development goals while driving its own growth.

David Chang,expressed his enthusiasm for aligning KES' solutions with the evolving trends in the Chinese market,especially in the areas of energy efficient industries and technological innovation. He emphasized the company's commitment to forging enduring and mutually beneficial partnerships with Chinese businesses. By working together,KES aims to drive industrial development,unleash new opportunities,and create substantial business value for all stakeholders involved.

As China strides towards innovation-driven,high-quality development,KES actively champions the principle of environmental responsibility. The company is at the forefront of promoting sustainable development by offering energy-saving and emission-reducing solutions to its customers. By consistently developing environmentally responsible and reliable products,KES strives to earn greater trust and recognition from consumers. With unwavering dedication,the company envisions a brighter future,where energy efficient practices and innovative solutions play a pivotal role in fostering a prosperous and environmentally conscious society.

About Koch Engineered Solutions

Koch Engineered Solutions (KES) delivers superior value in developing,integrating and applying innovative technical and service solutions for industrial value chains. KES offers uniquely engineered solutions in construction; mass and heat transfer; combustion and emissions controls; filtration; separation; materials applications; automation and actuation. Based in Wichita,Kansas,KES is a subsidiary of Koch Industries,one of the largest private companies in the world. More information is available at KochEngineeredSolutions.com.