Destination China

Abstract

German textile companies are increasing their presence in China, the biggest growth area in Asia, by establishing wholly-owned subsidiaries and by expanding sales networks. The new century emphasis is on localisation, customer-orientation and time-to-market leading to German companies seeking to set up production bases close to the customers. Trutzschler GmbH and Co. will open its new plant in Shanghai by end 2002. The wholly-owned concept resulted from an unsatisfactory joint venture three years ago. The workforce will be 500-600 strong, 90% of who will be local workers. KKA Kleinewefers Anlagen GmbH is making similar plans with China as the target for the proposed plant. Cognis Deutschland GmbH is expanding its Ginshan plant, 60km from Shanghai, though plans are not yet finalised. Another reason for a wholly-owned base is better control over piracy of machinery designs, as in Barmag's case. Schlafhorst, the Saurer Group, is expanding its sales force in China, and Hacoba Spultechnik GmbH is also strengthening its sales office in China.