Andreas Ehrensjö, Area Manager Sweden for the Nordic Industrial Park, gives his views on the business climate in the world's factory. Nordic Industrial Park is a Norwegian industrial park in China, which is located in Ningbo, south of Shanghai.
- We see a growing interest from Swedish companies. More and more want to review their possibilities to access a new market and reduce their production costs significantly.
In these days, the production costs is of high priority and much time is spent to optimize and streamline the production, but of course there are limits even here, in what can be achieved in areas such as the Nordic countries since we belong to the high-cost countries.
To establish production in China can bring significant savings. Here is a concrete example of the cost conditions of production established by the Nordic Industrial Park in Ningbo.
- Production premises 1,200 m2
- All costs for employees, payroll taxes, social charges, insurance, etc.
This "production package" costs 120,000 SEK per month, or Euro 10,750.
In addition to that the cost of production is much lower there are more advantages to the establishment of so-called industrial parks in China.
Since you take control of the final production, a higher quality of your finished product is obtained and you can buy all the components separately, which is very cost effective when you minimize your intermediaries. Another positive factor is that you reduce the risk that your product is copied.
Tony Harken