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Heino Dannemann – W ürth ( China) Holding

Deutsch-Chinesischer Workshop Investitions förderung in Entwicklungszonen Shenyang, 17./18. November 2008 “The Park in the Park” The Development of the W ürth Industrial Park in the EU-Development Zone, Shenyang. Heino Dannemann – W ürth ( China) Holding. Heino Dannemann.

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Heino Dannemann – W ürth ( China) Holding

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  1. Deutsch-Chinesischer WorkshopInvestitionsförderung in EntwicklungszonenShenyang, 17./18. November 2008 “The Park in the Park”The Development of the Würth Industrial Park in the EU-Development Zone, Shenyang Heino Dannemann – Würth (China) Holding

  2. Heino Dannemann • Born 12.05.1966 in Bad Mergentheim, Germany • M.Sc. in Human Resources Management • Since 1995 working with company and plant start-upsFocus: HR Management • Since 2003 working in Shenyang • Established 6 companies in Shenyang and Beijing • Würth since 2007 • CEO since December 2007

  3. Agenda • Company Introduction and Overview about in China • Würth Industrial Park Shenyang - The preparation, the project and the concept • How can I build up a company within the Würth Industrial Park Shenyang. Example: Arnold Fasteners • The environment for the start-up of Würth Industrial Park in Shenyang

  4. The Würth Group A Family Business Source: WIS

  5. The Classical Würth Assortment Source: WIS

  6. The Classical Würth Assortment • Fastening and assembly material • Hand, electrical and pneumatic tools • Chemical products • Cleaning and care products • Insulations • Storage and retrieval systems • DIN and standard parts DIN • Furniture and construction fittings • Anchors Source: WIS

  7. Würth Companies in 86 countries of the world as of September 2007

  8. Foundations in China since 1994 • 1994: Würth Hong Kong Co. Ltd • 1994: Würth Tianjin Int‘l Trade Co. Ltd • 1995: Würth Int‘l Trading (Shanghai) Co., Ltd • 1996: Würth Guangzhou Int‘l Trade Co. Ltd • 1997: Würth Shanghai Hardware & Tools Co. Ltd • 2001: Hahn + Kolb (Tianjin) Int‘l Trade Co. Ltd • 2002: WASI Tianjin Fastener Co. Ltd • 2002: Würth Electronics (Tianjin) Co. Ltd • 2003: Hahn + Kolb Tools Co. Ltd., Guangzhou • 2004: Würth Electronics Hong Kong Ltd. • 2004: Würth Phoenix IT (Shanghai) Co., Ltd • 2004: Grass (Shanghai) Int‘l Trading Co., Ltd • 2005: Reca (Shanghai) Int‘l Trading Co., Ltd • 2005: Hahn + Kolb, Chongqing • 2005: SWG Fasteners (Shanghai) Co., Ltd • 2005: Comgroup IT (Shanghai) Co., Ltd • 2005: Würth Fasteners Trading (Shanghai) Co., Ltd. • 2006: Würth eiSos Wuxi, Jiangsu • 2007: Würth eiSos Midcom, Longgang und Fuling • 2007: Würth Construction Tools Commercial Bejing Co., Ltd. • 2007: Reinhold Würth (Shanghai) Trading Co., Ltd. • 2007: Arnold Fasteners (Shenyang) Co.; Ltd. • 2007: Würth (China) Holding Co. Ltd. • 2008: Würth Hardware & Tools (Chongqing) Co., Ltd. • 2008: Arnold Fasteners Sales (Shenyang) Co.; Ltd. • 2008: Würth Hardware & Tools (Shenyang) Co., Ltd.

  9. The Würth-Group in China IT Würth Phoenix IT (Shanghai) Co., Ltd Comgroup IT (Shanghai) Co., Ltd

  10. The Würth-Group in China IT Reca Reca (Shanghai) Int‘l Trading Co., Ltd

  11. The Würth-Group in China Würth Industrial Park Shenyang IT Reca Production SWG Fasteners (Shanghai) Co., Ltd

  12. The Würth-Group in China Würth Industrial Park Shenyang Würth Fasteners Trading (Shanghai) Co., Ltd IT Reca Production Würth Line Industry

  13. The Würth-Group in China Würth Shenyang Hardware & Tools Co., Ltd. Würth Beijing Construction Tools Commercial Co., Ltd. Würth Tianjin Int‘l Trade Co., Ltd IT Reca Würth Shanghai Hardware & Tools Co., Ltd Production Würth Line Industry Würth Line Würth Hong Kong Co., Ltd Würth Chongqing Hardware & Tools Co., Ltd. Würth Guangzhou Int‘l Trade Co., Ltd

  14. The Würth-Group in China Hahn & Kolb (Tianjin) Int‘l Trade Co., Ltd IT Reca Production Hahn & Kolb (Chongqing) Int‘l Trade Co., Ltd Würth Line Industry Würth Line Hahn & Kolb (Guangzhou) Int‘l Trade Co., Ltd Tool trade

  15. The Würth-Group in China WASI (Tianjin) Int‘l Fasteners Co., Ltd IT Reca Production Würth Line Industry Würth Line Tool trade DIN- and standard parts / stainless steel

  16. The Würth-Group in China Würth Electronics (Tianjin) Co., Ltd IT Würth eiSos Wuxi Reca Production Würth eiSos MidCom Fulinng Würth Line Industry Würth eiSos MidCom Longgang Würth Line Tool trade Würth eiSos Hong Kong DIN- and standard parts / stainless steel Electronic

  17. Sales Würth Group China 1997 – 2008YTD March, in Mn. EUR, External

  18. Employee development Würth Group China1997 – 2008 +5.123 MA Midcom

  19. Employee development Würth Group China1997 – 2008 +5.123 IDM Midcom

  20. Würth Industrial Park Shenyang.The preparation, the project and the concept.

  21. Why should my company go to China?

  22. What do my customers want? • Customers reflect global structures • Worldwide standardization • Reduction of the number of suppliers • Concentration on the core competence -> Global search for powerful suppliers who can reliably and quickly supply goods on the spot in the quality we are accustomed to! (Europe, Asia and America)

  23. What preparations do I need?

  24. Structure of Arnolds analysis Pestle analysis

  25. Partial analysis of economic environment

  26. Partial Analysis Social Environment

  27. The Chinese Labor Market • No German-style dual-track system of professional training • No focus on (solid) cold forming and fastening elements at universities -> Technical qualification must be self-organized; basic qualification may exist if hired away from competitor

  28. Partial Analysis Social Environment

  29. After preparation: summarize and decide!

  30. So what? • Customers want Arnold/Würth quality at an appropriate price from a Chinese production facility! • Quality can only be achieved with German-style stable production processes! • Cultural differences must be considered and bridged! • Competitors attack the Chinese market at high speed! • Quick, yet well thought-out! • Big, yet manageable! • Same targets, yet different approaches!

  31. This is how we started...

  32. Our vision Source: WIS

  33. Würth Industrial Park – The Start in Germany Letter of intend The letter of intend between Würth Group and Shenyang EU Economic Development Zone had been signed in September 2006 in the German Chancelor Bureau. The ceremony had been accompanied by Wen Jiabao and Angela Merkel

  34. The Würth Industrial Park – The Start in Shenyang 1. August 2007 the construction works in Shenyang started with the groundbreaking ceremony

  35. Short review of construction project: • Challenges in the construction project: • quality (international requirements but local calculation) • costs (variations and necessary changes in the design) • time delays (Olympic games, weather, suppliers, quality issues) • power supply, gas supply, infrastructure (EU development zone)

  36. One vision – two challenges! Ongoing task: Installation of Arnold Fasteners Shenyang and other production companies Project: Realisation of the Wuerth Industrial Park / Invest Arnold 01.01.2008 31.12.2008

  37. The Concept The 4 advantages of the Würth Industrial Park: • Space and Infrastructure • Start-up Management from Experts • External Support • Wuerth Companies and external Companies • Shared Services

  38. Space and Infrastructure – Current Status VACANT VACANT

  39. Space and Infrastructure – Extension Phase 1

  40. Space and Infrastructure – Extension Phase 2

  41. Space and Infrastructure – Extension Phase 3

  42. External Support • Der Würth Industrial Park Shenyang receives very good support from the following external partners: • Current and potential customers (e.g. BMW, ZF, Brilliance) • City, Provincial and National Government (e.g. Mr. Li, Mr. Chen, Mr. Song) • Local vocational schools, colleges and universities (e.g. SEMES, Shenyang New University) • Local development zones and industrial park organisations (e.g. EU-Development Zone) • Local, regional and national press and media (e.g. CCTV, SY TV) • Stakeholders and cultural organisations (e.g. Forbidden City Museum) Source: WIS

  43. Established Companies in Shenyang May 2007: Arnold Fasteners (Shenyang) Co. Ltd. December 2007: Würth China Holding (Shenyang) Co. Ltd. February 2008: Arnold Fasteners Sales (Shenyang) Co. Ltd. May 2008: Würth Hardware and Tools (Shenyang) Co. Ltd. Source: WIS

  44. Startup Management by Experts A team of local and foreign experts can support start-up companies in the following areas: • Projectmanagement in the early phase in the home country of the company • Projectmanagement in Shenyang during the start-up and the launch • Application of all company licenses • Application of all production licenses • Recruitment, selection, training of staff • Payroll services • Government relations • Public relations • Accounting • Purchasing of machines, tools and material Source: WIS

  45. Shared Services All companies located in the Würth Industrial Park Shenyang share the following services: • Recruitment, selection, training of staff • Payroll services • Government relations • Public relations • Accounting • Security • Facility Management • Canteen / Catering Services • Bus Transportation / Driver Services Source: WIS

  46. How can I build up a company within the Würth Industrial Park Shenyang ?Example: Arnold Fasteners

  47. The Task Deciding about Success or Failure: Combining these elements in processes in such a way that the customer is supplied perfect quality at a reasonable price!

  48. People We need: • Highly qualified employees, • Highly motivated employees • who are provided suitable framework conditions! This is why we attach importance to: • Professional personnel recruitment • Our own training courses in cooperation with local schools • Management training and corporate culture • Providing a future to our employees (career and income)

  49. Machines We need: • Reliable machines • with long service life • at reasonable prices! This is why we try to: • use local machines to the greatest possible extent • build up partnerships with suppliers • collect experience already now concerning the training procedure

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