This means that new foreign firms in the High-Tech area that choose to establish operations in China could benefit from various forms of assistance such as tax reductions and lower tariffs. In addition to these subsidies, there are also other forms of assistance.
An industrial park that has obtained the necessary status to benefit from these future high-tech subsidies is
NIP - Nordic Industrial Park. This park has received the "Hitech park on state-level" award.
A customer of NIP is the Rimaster company which believe that localization is the key to success in the automotive industry in China.
The Swedish company Rimaster manufactures and develops electrical systems supplied to the engine and vehicle manufacturers in China. Rimaster is a great example of a midsize Swedish company that can benefit from establishing operation close to their customers. A year ago, the company had 15 employees. Now they have 25 and they expect to be 40 by the end of the year.
Rimasters establishment was a quick process and since they got their license in the end of 2008, the company has grown tremendously. This year they expect to recruit fitters, engineers and administrative staff. For Rimaster it is crucial to be established in China and a great advantage is also to be located in the Shanghai region where the major European and multinational companies have their production.
Thomas Wernersson, CEO of Rimaster Ningbo Co. says: "It is important for Rimasters customers that we have a facility in China, and as a subcontractor, there is a requirement for global presence. It is important to be able to service the customers where they are. At the moment, we do not export to Europe. Eventually maybe we can work on sourcing and export a small part, but today everything is produced to the local market here."
Being present in China is something Rimaster find important. They offer not only the customers electrical cabinets, panels and cables - they offer a solution to a need. Although the primary offer is locally produced electrical system, it is sometimes just as important to work with the redesign and development of products. Much of the work is to try to adapt the design to available materials or qualities that exist in China.
The norm in the Chinese business is the production of large series, but Rimaster works with principles such as high-mix, low volume and flexibility. The key to success lies in the development of a system tailored to the customer and often the solutions differ from one example to another.
"We are preferable looking for local solutions, and locate the products so that we can be on site. When we know the customer, we can shorten the delivery time to six weeks, whereas with an unknown local Chinese supplier it could take up to a year before the product is in line with the expectations, says Thomas Wernersson.
"For us, supplying on the Chinese market, location is the key to success. We are able to find materials, availability of suppliers and components produced locally, if not in China then in Asia. It shortens our lead time, some component foundations are designed to be manufactured in Europe, but they need to be modified in order to be approved in China. Our job is to adapt our products to our customers who produce in China, he continues.
Thomas Wernersson believes that global presence is important for Swedish companies: "I think it necessary. For us it is a requirement and I think it is a prevalent concept in our industry.”
Corporations become global and follow the customers to China, the U.S. and South America. This is how it works with today´s competition since costs are central in the subcontractor business. It is very important to be competitive.
Cecilia Helland