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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
Copyright© 2002 Anderson Power Products. Reproduction or distribution without the express permission of Anderson Power Products is Prohibitedwww.andersonpower.com
APP in China APP in China
A little history Why set up in China? Types of China Companies Choosing a location Overcoming challenges
Copyright© 2002 Anderson Power Products. Reproduction or distribution without the express permission of Anderson Power Products is Prohibitedwww.andersonpower.com
Counterfeit ConnectorsCounterfeit Connectors
Copyright© 2002 Anderson Power Products. Reproduction or distribution without the express permission of Anderson Power Products is Prohibitedwww.andersonpower.com
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
Copyright© 2002 Anderson Power Products. Reproduction or distribution without the express permission of Anderson Power Products is Prohibitedwww.andersonpower.com
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
Copyright© 2002 Anderson Power Products. Reproduction or distribution without the express permission of Anderson Power Products is Prohibitedwww.andersonpower.com
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
Copyright© 2002 Anderson Power Products. Reproduction or distribution without the express permission of Anderson Power Products is Prohibitedwww.andersonpower.com
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.
Copyright© 2002 Anderson Power Products. Reproduction or distribution without the express permission of Anderson Power Products is Prohibitedwww.andersonpower.com
Yellow River Delta
Yangtze River Delta
Pearl River Delta
Copyright© 2002 Anderson Power Products. Reproduction or distribution without the express permission of Anderson Power Products is Prohibitedwww.andersonpower.com
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
Copyright© 2002 Anderson Power Products. Reproduction or distribution without the express permission of Anderson Power Products is Prohibitedwww.andersonpower.com
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
Copyright© 2002 Anderson Power Products. Reproduction or distribution without the express permission of Anderson Power Products is Prohibitedwww.andersonpower.com
Copyright© 2002 Anderson Power Products. Reproduction or distribution without the express permission of Anderson Power Products is Prohibitedwww.andersonpower.com
ChallengesChallenges
Creates fear among existing employees Bureaucracy Banking Logistics Cash Flow Hiring effective leaders Global operations integration
Copyright© 2002 Anderson Power Products. Reproduction or distribution without the express permission of Anderson Power Products is Prohibitedwww.andersonpower.com
Company Car Incentives!Company Car Incentives!