10 amps up to 700 amps Global Power Solutions ITA - 53 rd Annual Meeting October 25, 2004 Anderson Power Products in China.

10 amps up to 700 amps

Global Power SolutionsGlobal Power Solutions

ITA - 53ITA - 53rdrd Annual Meeting Annual MeetingOctober 25, 2004October 25, 2004

Anderson Power Products in ChinaAnderson Power Products in China

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APP in China APP in China

A little history Why set up in China? Types of China Companies Choosing a location Overcoming challenges


Counterfeit ConnectorsCounterfeit Connectors


Follow Your Customer Follow Your Customer

Primary driver is a follow-your customer strategyLocal support, local trading

Counter competitive threat OEM design centers shift Overall economic growth


APP China RequirementsAPP China Requirements Local presence for OEMs and subcontractors

Sales/Distribution/Customer ServiceManufacturing & SourcingProduct Development

LogisticsManufacture and sell locallyManufacture and exportImport and sell locallyImport and export to A/P region

Establish a direct sales force


3 Types of Chinese Companies3 Types of Chinese Companies Representative Office

Liaison, marketing, promotion only WFOTC -Wholly Foreign Owned Trading Company

Selling and “Processing” onlyCan sell imported goodsNo manufacturing

WFOE – Wholly Foreign Owned EnterpriseManufacture and sellCan sell locally and exportCannot sell imported goods


Types of Investment ZonesTypes of Investment Zones

Special Economic Zone (SEZ) Bonded Warehouse or Free Trade Zone (FTZ) Export Processing Zone (EPZ) Industrial Park of Urban Towns.


Yellow River Delta

Yangtze River Delta

Pearl River Delta


Location Selection CriteriaLocation Selection Criteria

Customer base concentration Supplier base concentration Implementation cost & future developments Recurring costs structure Material flow logistics Cash flow considerations Travel considerations for visitors


Three APP FacilitiesThree APP Facilities Regional Headquarters – Hong Kong

New Territories LocationSha Tin – North of Kowloon

Manufacturing Plant & DormitoriesShenzhen Special Economic ZoneSonggang, BaoAn District, Industrial ParkExcellent location for convenience

Distribution CenterTaichung, Taiwan



ChallengesChallenges

Creates fear among existing employees Bureaucracy Banking Logistics Cash Flow Hiring effective leaders Global operations integration


Company Car Incentives!Company Car Incentives!

10 amps up to 700 amps Global Power Solutions ITA - 53 rd Annual Meeting October 25, 2004 Anderson Power Products in China.

Documents

taiwan slide

economic growth slide

direct sales force slide

types of china companies

export import

manufacturing wfoe

foreign owned trading

imported goods