Canada's CSA Group bullish on biz in China, to open more facilities

Believing that it has "underinvested" in China despite its first steps made 27 years ago, Canada's CSA Group will open more facilities in the country to seize growth opportunities and keep abreast of the leapfrogging development made by Chinese companies, said David Weinstein, president and CEO of the international standards development, testing and certification services provider.

Weinstein made the remarks during an interview in late October as the Toronto-based company opened a new laboratory in Kunshan, East China's Jiangsu province.

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

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

He said CSA will help outbound Chinese manufacturers "demonstrate compliance" with standards applicable in different markets around 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 out to North American and European markets, Weinstein said.

"The world is so dependent on Chinese products and manufacturing regardless of some geopolitical noise and tension. 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 factor attracting consumer interest in overseas markets. Good and smart product development skills — as well as quality 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, Guangdong province, in 1997, and now employs a total of around 350 people across the country.

Weinstein said that 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 just-opened facility in Kunshan, CSA is looking at the possibility of phase two of the new project.

Meanwhile, CSA is looking to potentially set up a new lab in China's interior in the next five years, possibly in Chengdu, Sichuan province, or 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 areas of technology to invest in has helped the company enjoy rapid growth over the past few years. Its focus on energy storage and photovoltaic testing are two examples, the CEO said.

The logistical advantages of Kunshan, which is only a one-hour drive from Shanghai and has four high-speed railway stations, was 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 some 8,000 square meters.

Meanwhile, the abundance of highly skilled workers — especially young engineering graduates and technicians — readily available in Kunshan is another reason for CSA to expand its footprint in the city, Weinstein said.

While CSA discussed the expansion of the Kunshan facility two years ago, construction started in October last year, and 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 has progressed as fast as those in China. 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.

To date, over 9,900 foreign-invested projects have landed in this county-level city, with the total investment value exceeding $120 billion, said 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.