BIZCHINA / Overseas Investment
Danaher Motion plans local plants
By Wang Yu (China Daily)
Updated: 2006-09-15 09:56
Danaher Motion, a global motion product and solution provider, aims to
have better control over its China business by localizing more
manufacturing facilities in the country's fledgling market.
The company plans to set up local manufacturing bases for three major
product portfolios motors, actuators and mechanical products in 18
months, Paul Hussey, the firm's vice-president of Asia sales and business
development, revealed yesterday, without disclosing the specific
investment involved.
"We are still in the initial stage to plan such a move, which is targeted
at further cutting costs and being closer to local customers to deliver
them better-designed products and services," Hussey said.
That is part of Danaher Motion's bold strategic business development
blueprint in China, under which the firm is to bolster its local sales by
four times in three years. That means 10-per-cent market share in China,
he said. Most of Danaher Motion's products currently sold in China under
the three portfolios are imported from the United States or Europe, which
drives up prices and causes delivery delays.
Hussey said his firm had three options to achieve the planned move:
co-locate the company's manufacturing facilities with Danaher's other
business divisions in China; establish production bases in Tianjin along
with the firm's existing wholly owned facility there; and partner with
local original equipment manufacturers (OEM) to bring in more products to
China.
Danaher Motion is still weighing up its options. But Hussey emphasized
that it was crucial for the firm to localize not only its final assembly
line but the whole supply chain including finding local suppliers if it
was to service its local customers well.
Danaher Motion's existing factory makes motors for OTIS in Tianjin, but
many components are imported from the United States, which drives up
costs and wastes time on deliveries. Most materials for producing the
components in the United States come from China. "Therefore it is key to
find local suppliers and OEM partners," Hussey said.
He refused to identify local potential partners being contacted by the
firm, but said they are seeking quality control and management.
(For more biz stories, please visit Industry Updates)
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