Renold Hangzhou's leaf chain assembly line.

Despite demand for leaf chains falling sharply since the global financial crisis, Renold plc has plans to double the capacity of its Chinese factory in the next two years.

In an exclusive interview with Forkliftaction.com News, Renold senior vice president Berdon Robertson says that its new Chinese plant, which is a part of its expansion plans, has "fully embraced the same quality and process control procedures" as its European sites.

"Two of the top forklift manufacturers, after extensive audits, have approved Renold Hangzhou for supply of their chains," Robertson says.

Renold, which claims to be the world's second-largest industrial chain company, with a capacity to produce over 10,000 metres of leaf chain a day, acquired Chinese chain company Hangzhou Shanshui in 2007 for an undisclosed sum after mounting pressure to cut costs. (Leaf chains are the chains located on the mast of a forklift. For all-terrain forklifts, it will be the chain following the boom that allows it to extend and retract. For warehouse forklifts, the chain is usually located at the mast where the platform of the fork raises and lowers.)

Following a USD4 million investment in capital equipment, Renold is now manufacturing over 40% of its leaf chains at the 22,000 sqm (236,805 sqft) plant.

Robertson says that while the company is proud of its Chinese plant's quality control and testing systems, the road to implementing them has not been hurdle-free. "As anyone who has worked in China knows, the Chinese are always looking for inventive ways to save money and increase production. This can often be in direct contrast to the disciplines required in following quality control procedures."

Over time, the 500-strong workforce in Hangzhou have "slowly accepted" the long-term benefits in following quality control procedures, learning that higher costs in the short term can lead to better business in the long term from international companies who demand "a consistently high specification chain for this safety critical item".

Describing the Chinese plant's modern production and testing equipment, Robertson says the facility includes fully automated spectrograph for analysing incoming material; high-speed presses; Japanese-designed mesh belt furnaces with fully automated zone controls; German high-speed automatic assembly lines with integrated riveting, camera recognition system, tight joint check, proof loading, oil and reel; and "the most modern chain test house in China" that has "the only specifically designed leaf chain wear test rig in China".

Robertson says Renold made the chain wear test rig based on the design of a rig by an unnamed, large multinational forklift manufacturer. "We are not aware of anyone else in China having this sort of rig. Four chains are run under a variable shock load over a pulley at a speed of 0.5 metre (1.6 feet) a second. The shock loads are similar to those experienced on a fatigue machine."

The chain is therefore subjected to a simulated loading of a forklift running over an uneven surface while carrying a heavy load. The accelerated test using loads and speeds above normal conditions is expected to give a realistic comparison of chain performance in simulated conditions.

Production at Hangzhou may only have started in 2009 but Renold has increased its capacity by 25% this year and has already allocated space and funds to double capacity in the next two years if demand rises.

Robertson does not disclose figures when commenting on the impact of the global financial crisis on his company, except to say that Renold was "affected". Headquartered in Manchester, UK, Renold employs 2,500 people in 23 countries. Its 2009 sales of industrial chains totaled USD200 million.