Dr Xi Chen is an early riser. During the week he arrives on site in Gaomi by seven at the latest. Some people still find it a little strange to see him sitting down to breakfast in the vast works canteen and making friendly conversation with the staff. This is because, as General Manager, Chen is responsible for CLAAS production in China – and in Chinese companies, such an approachable boss is something of a rarity.

Chen explains in German that a colleague once said to him: "Dr Chen, in the past we never used to see our bosses very often. But you come into Production and eat with the others in the canteen. I like that." This makes Chen proud, because he particularly values the fact that the Gaomi factory is not a typical Chinese company: "We are a German company, even though we are located in China. Our customers expect the highest standards from our products", he says. "After all, a CLAAS combine harvester is the Mercedes of agricultural machines." To satisfy these expectations, it is very important for Chen to establish the CLAAS culture within the factory.

Flat hierarchies – no easy task

Chen has the advantage of being very familiar with Germany and German companies. The 45-year-old studied engineering in Germany; he holds a bachelor’s degree from the University of Stuttgart and a doctorate from Karlsruhe. He then worked for several years in managerial positions for German automotive suppliers.

Since starting at CLAAS one and a half years ago, Chen has been working hard to flatten the hierarchies in Gaomi. No easy task, as Chinese companies often have far more clearly defined hierarchies than German family businesses like CLAAS. So many colleagues are still reluctant to voice their ideas openly. To overcome this, Chen has introduced quarterly town hall meetings where employees can put questions to the management – even anonymously if they wish.

This approach, still largely unknown in China, has proved popular with staff. Another big success is the new app-based suggestions scheme, which has already led to many improvements in Production. The culture of open communication and constructive criticism that Chen is striving to achieve is also producing results.

700 machines per year

These changes to the corporate culture in recent years have contributed to the success of the production plant. It was established in 2014 as a joint venture with a Chinese company. Since 2016, it has traded under the name CLAAS Agricultural Machinery (Shandong) Co. Ltd and is part of the Germany company.

After initial challenges in gaining a foothold in the Chinese market, CLAAS in Gaomi now produces 700 machines per year – mainly combine harvesters. These are manufactured primarily for the Chinese market under the CLAAS name and the Chinese brand name CHUNYU. For some years now, Gaomi has been preparing the ground for exporting to foreign markets.

The site employs 500 staff and has a comprehensive sales and service network in Central and Northern China. CLAAS is currently the only German firm in Gaomi. The city with 900,000 inhabitants – quite small by Chinese standards – is in the Shandong Province, one of China's main agricultural regions and known as the breadbasket of China. The megacity Shanghai is seven-and-a-half hours away by car, or around six hours by train.

Dual education and training: a recipe for success

Another aspect of German corporate culture embraced by the Gaomi plant is the dual education and training programme for technicians. The system is virtually unknown in China, explains Qian Liu, the plant's Dual Education and Training Manager. The 38-year-old engineer joined CLAAS in September 2021 having previously worked for BMW in China and is familiar with the German apprenticeship culture.

Chinese companies normally recruit university graduates and then train them. In contrast, apprentices at CLAAS spend much of their time working in the factory as well as attending college. "When they graduate, these young technicians are already familiar with the company and have a clear career path to follow", says Lui. "That's something they really appreciate." Twelve graduates have completed the programme to date – and if the company has its way, there will be plenty more to follow.

A key future market

That tallies with the company’s plans for China: CLAAS is developing the export share of the Gaomi factory – with combine harvesters for Europe, Africa and Central Asia. The side of the business that supplies components to other factories is also growing as it helps CLAAS play to its strengths in terms of procurement and in-house production.

"China will remain a key future market for us, although we must always keep a judicial eye on its distinctive characteristics and framework conditions", says Bernd Kleffmann, Senior Vice President Product Unit Combines Range C-F at CLAAS. "China attaches great importance to food self-sufficiency. That's why products from different CLAAS sites have Chinese customers waiting for them. And that includes combine harvesters in green and red from Gaomi."

Xi Chen lives in a small apartment in Gaomi during the week. At the weekend he takes a six-hour train journey back to his wife and three children in Shanghai. On Sunday evenings he commutes back to Gaomi.

Chen plans to progress the factory even further in the coming years, something that the workforce welcomes: "Our colleagues are always willing to learn new skills and look forward to the further development of the factory."

To drive this development forward, Xi Chen will be back in his office again next Monday, by seven at the latest.