MANUFACTURING

Special Projects in China
by Karl-Heinz Däumler

Who should be interested?
Manufacturers of mechanical, electromechanical and electronics products who want to reduce manufacturing costs and/or gain access to the enormous Chinese market

What are the options?
• Acquire a Chinese company
• Start a joint venture with a Chinese company
• Cooperate/transfer technology
• Open a branch office
• Build a Wholly Owned Foreign Enterprise (WFOE)
• Find sourcing partners in China

What services does GGI provide?
Phase 1: Preparation
• Initial discussion with interested company, analysis of the possible alternatives and the feasibility of each option
• Search for potential partners for each alternative
• Analysis of Chinese companies: manufacturing know-how, sustained quality, cost
• Presentation of all qualified Chinese companies to our client and selection of one partner. (If necessary or desired, we will arrange a joint trip to China with our client to visit potential partners before making a final decision)
• Preparation of contract between our client and Chinese partner (jointly with outside law firm)

Phase 2: Execution
• GGI will remain involved for the duration of the contract and will make sure that quality, costs and other requirements continue to be in line with contract.

Benefit to our client
• Search for Chinese partner is done by experts at substantially lower costs than the client would incur on its own.
• Our man in China is a products/technology person, who, in regular visits to the Chinese partner company, will make sure that quality is maintained.
• Of particular benefit to smaller/medium-sized companies: only minimal management/human resources attention to the “China project” is necessary.