German tech firms see more opportunities in China

Updated: 2012-04-24 22:48

By Cecily Liu in Hannover, Germany (chinadaily.com.cn)

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Leading German technology businesses hope the annual industrial and technological show Hannover Messe will help them strengthen their presence in the Chinese market.

They believe that China's policy reorientation from high growth to sustainability in the current five year plan would lead to increasing demand for their products and services.

Peter Köhler, CEO of Weidmüller, which provides products and solutions for the transmission of power, data, and control signals in industrial environments, said that he looks forward to meet both existing and potential customers from China at the fair.

"We will have the opportunity to show our broad product portfolio, to understand customers' needs, and make customers excited about our products, solutions and services," he said.

Weidmüller first expanded into China in 1994 with a sales base in Shanghai. It opened production facility in Suzhou in 2003, and subsequently built two Chinese research and development centers.

Köhler said that Weidmüller has witnessed a sharp rise in the demand for customized solutions by Chinese customers, and he expects this trend to continue.

Köhler said that Weidmüller's technology gives it an edge over its Chinese competitors, especially in the supply of component, and Weidmüller's Chinese management team has been very important for it to understand Chinese customers' needs.

Weidmüller currently has around 1000 employees in China, which is the company's second biggest market after Germany. But Köhler believes China will become Weidmüller's biggest market over the next 4 - 5 years.

Also attending the Hannover Messe is Eisenmann, a supplier of systems for technologies, including general finishing technology, environmental technology, material flow automation and process and high-temperature technology.

Eisenmann first expanded into China in 2003 by establishing a subsidiary in Shanghai, and has serviced an increasing number of Chinese customers alongside multinational businesses with operations in China.

"Germany developed early in these systems. Nowadays I also see some kind of mind change in China, so China is embracing these technologies," said Matthias von Krauland, chairman of the executive board of Eisenmann,

To take full advantage of China's growth, Eisenmann acquired the China-based provider of general finishing technology Hightec Group last year, which brought its employee number from about 80 to 300.

But von Krauland believes that Eisenmann has great potential to grow further in China, and expects both its staff member and turnover in China to double in five years' time.

The Hannover Messe, held from Monday to Friday, has attracted some 5,000 exhibitors from 65 countries and regions. Almost half of these exhibitors come from outside Germany, among which nearly 600 came from China.

China is Hannover Messe's partner country this year. Premier Wen Jiabao and German Chancellor Angela Merkel together opened this year's fair.

While China's exhibition at the fair is themed "Green & Intelligence", the fair's theme is "Greentelligence".

Michael Schumann, of the German trade association Federal Association for Economic Development and Foreign Trade, said that China is still facing many challenges relating to environment friendly production, where German businesses can help.

Cooperation can take place in the form of projects, like the planned Sino German Eco Park in Qingdao, or regulation, for example the adaptation of German regulations on sustainable building in China, Schumann said.

BAE Batterien, a lead acid battery producer, is one German company keen to help China reduce heavy metal pollution, by exporting good quality German-made battery to the Chinese market.

BAE recently started exporting batteries to Hong Kong, where its customers include Kathy Pacific and Hongkong Electric.

Jan Ijspert, CEO of BAE said that his company's next step is to find more customers from the Chinese mainland.

"Our strategy is to develop a niche market, so customers can rely on the highest quality of our batteries," Ijspert said, adding that BAE will be a good supplier of batteries for data centres, financial institutions, and in the uninterruptible power supply markets.

Contact the writer at Cecily.liu@chinadaily.com.cn

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