Canada-based CSA Group aims to open more facilities in China

Believing that the company has "under-invested" in China despite their first steps made 27 years ago, CSA Group will open more facilities in the country to seize growth opportunities and keep abreast with the leapfrogging development made by Chinese companies, said David Weinstein, president and CEO of the international standards development, testing and certification service provider.

Weinstein made such comments during an interview in late October, when the Toronto-headquartered company opened its new laboratory in Kunshan of East China's Jiangsu province.

The new lab is a joint venture with China Certification & Inspection Group, with CSA serving as the majority partner. It will provide testing and certification services covering photovoltaic modules and components, grid-tied inverters and power conversion systems, electric vehicle chargers, batteries, energy storage systems, light vehicles, and products for hazardous locations.

New certification capabilities have been added, including fire testing, electromagnetic compatibility testing and home and commercial robotics testing, said Weinstein.

As he explained, CSA will help the outbound Chinese manufacturers "demonstrate compliance" with the standards that are applicable in different markets in the world, covering the areas of safety, energy and efficiency, among others.

While the Chinese automotive industry now faces more challenges than other industries in overseas markets, a large number of Chinese appliances and industrial equipment companies are reaching into the North American and European markets, according to Weinstein.

"The world is so dependent on Chinese products and manufacturing regardless of some geopolitical noise and tensions. China will continue to manufacture products for the world, while the rest of the world will continue to import those products," said Weinstein.

Price is no longer the major reason attracting consumers' interests in overseas markets. Good and smart product development skills, as well as quality in engineering, have become the competitive edge of Chinese products. For industries like energy storage, electric vehicles and charging technology, China has developed an outstanding lead beyond the capabilities of many other countries in developing new products and working with new technologies, he added.

CSA first tapped into China with a representative office built in Guangzhou in 1997, hiring a total of around 350 employees from across the country at present.

According to Weinstein, CSA is adding another lab in Guangzhou which is under construction at present. For its Shanghai lab which has been running for 13 years, CSA is looking to replace it with a new facility in the city within the next year or two. Even for the facility in Kunshan which has just opened, CSA is looking at the possibilities for a phase two of the new project.

Meanwhile, CSA is looking potentially to build a new lab in inland parts of China in the next five years, including cities like Chengdu and Chongqing, he added.

CSA has secured double-digit growth both globally and in China, while single-digit growth is the industry average. Being strategic about which of the different sectors of technology to invest in has helped the company to retain rapid growth over the past few years. The company's focus on energy storage and photovoltaic testing are two examples, according to Weinstein.

CSA Group also signed on Oct 28 a memorandum of understanding with the Kunshan Economic and Technological Development Zone for sustainable development and regional investment.

The logistic advantage of Kunshan, which is only one-hour drive from Shanghai and holds four high speed train stations, is one major reason for CSA to locate a lab in the city in 2012. With the new space added in late October, the Kunshan facility will span across some 8,000 square meters.

As Weinstein understands, the certification industry is still a very human centered business, although artificial intelligence may make a difference in the future. 

"There are many touch points during the certification process. Rarely does a product come to our lab and the testing goes smoothly. There are always questions and issues. There is a lot of interaction back and forth. Therefore, working with people who understand what a manufacturer is trying to accomplish and appreciate the deadlines that the manufacturer has to meet, is really important," he said.

In this sense, the abundance of highly skilled people, especially the young engineering graduates and technicians readily available in Kunshan is another reason for CSA to expand its footprint in the city, according to Weinstein.

While CSA discussed the expansion of the Kunshan facility two years ago, construction started in October last year, which was completed in one year's time.

"CSA is a global organization. We are currently in the process of building labs in other parts of the world. But none of our other construction projects have progressed as fast as those in China," said Weinstein.

"The quality here is always very good. There is an energy and drive with those we are working with here that is unlike anything we have seen anywhere else in the world," he added.

Up to date, over 9,900 foreign-invested projects have landed in this county-level city, with the total investment value exceeding $120 billion, according to the Kunshan government. By the end of 2023, Kunshan attracted regional headquarters or facilities shouldering similar functions from 64 multinational companies, accounting for 17.2 percent of the total number in Jiangsu province.

shijing@chinadaily.com.cn