CHINA - In the final quarter of 2023, the German-based company Homag, a leading provider of integrated solutions for the woodworking industry, secured a substantial order from China's Luli Wood Industry.

This significant contract, valued at approximately EUR 90 million, is set to span over three years and includes the delivery of an extensive machine and system package for furniture production.

To formalize this strategic partnership, a signing ceremony was held, attended by key representatives from both companies, including Zhong Duzhang, the deputy general manager of Luli Group, and Dr. Daniel Schmitt, the CEO of the Homag Group. This collaboration was motivated by Homag's strengths in Industry 4.0, its extensive industry experience, and its long-term presence in the Chinese market.

The value creation for this major order will be distributed across both Germany and China. Homag plans to utilize a combination of Chinese and German teams for installations, commissioning, and service at Luli Wood Industry. This strategic approach allows Homag to capitalize on the unique strengths and expertise of both teams, ensuring a seamless and efficient implementation process.

Dr. Schmitt expressed his satisfaction with the order, emphasizing the significance of the Chinese market for Homag. This partnership not only underscores Homag's commitment to expanding its global footprint but also highlights the dynamic and growing potential of the Chinese market for the woodworking industry.