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BEIJING, Oct. 7 (Xinhuanet) -- China has been a front-runner in manufacturing. The manufacturers' expansion overseas shows that China is also moving to upgrade its industrial structure.
Hamburg port, the second largest in Europe. Key to daily operations are these container bridges, made AND delivered by a Chinese company. Located just half an hour's ride from the port, the company's managers remember a humble start when entering the German market.
"They made the regulations. They made the standards. So in the beginning, ZPMC had to accept a lot of conditions," said Zhao Hangyu, deputy MD of Zhenhua Port Machinery Vertriebsservice Gmbh.
Zhao said the conditions were unfavorable for a junior player but that prompted learning and growth.The company has taken up to 75 percent of the container bridge market share after nearly two decades of technology development and has forged solid ties with its local customers.
"During the years, we have got already a special relationship to the employees and to the Chinese culture and so on. So it's getting really great," said Thomas Hanau, electrical engineer of Crane Departmant, HHLA.
The company is in talks now with other ports for fresh container bridge deals.
But this production adventure goes beyond a mere story of a Chinese company expanding overseas. It's also about a company that's widening its reach to include services as well as products.
"The consideration is to make a transition and also upgrade the company from pure product provider to product plus service provider," Zhao Hangyu said.
The manufacturer's going-out strategy comes as China promises to lift its industrial sector through the offering of comprehensive services and high-end products.
Economists say that to upgrade the level of "made-in-China," Chinese manufacturers need to establish an entire worldwide business chain, including design, production, investment, and after-sale services.
This company has established networks in 36 countries to streamline its global operations and aims to diversify its business with local resources.
"On the one hand, there are old cranes which we might to modify, and we hope to enter this market. On the other hand, the maintenance, the repair works are also the topic," said Lutz, operations director of Zhenhua Port Machinery Vertriebsservice Gmbh.
As is a new initiative to compete in the service market, where ZPMC only accounts for a single digit percent share.
"We would like to respond to our clients' calls in no time and change our current after-sale service mode of sending staff here from China. We are in talks to purchase a local firm and hope to finish the deal by the year-end. We aim to integrate our resources and enter the German after-sale service market via the purchase of this firm," said Chen Xingchao, the deputy MD.
Reaching a new market is no easy task. ZPMC has upgraded from a manufacturer to service provider in a matter of 18 years. The road ahead for this company and many others, would be interesting and challenging.
(Source: CNTV.cn)
