Danaher Motion plans local plants
By Wang Yu (China Daily)
Updated: 2006-09-15 09:56
Danaher Motion, a global motion product and solution provider, aims to have
better control over its China business by localizing more manufacturing
facilities in the country's fledgling market.
The company plans to set up local manufacturing bases for three major product
portfolios motors, actuators and mechanical products in 18 months, Paul Hussey,
the firm's vice-president of Asia sales and business development, revealed
yesterday, without disclosing the specific investment involved.
"We are still in the initial stage to plan such a move, which is targeted at
further cutting costs and being closer to local customers to deliver them
better-designed products and services," Hussey said.
That is part of Danaher Motion's bold strategic business development
blueprint in China, under which the firm is to bolster its local sales by four
times in three years. That means 10-per-cent market share in China, he said.
Most of Danaher Motion's products currently sold in China under the three
portfolios are imported from the United States or Europe, which drives up prices
and causes delivery delays.
Hussey said his firm had three options to achieve the planned move: co-locate
the company's manufacturing facilities with Danaher's other business divisions
in China; establish production bases in Tianjin along with the firm's existing
wholly owned facility there; and partner with local original equipment
manufacturers (OEM) to bring in more products to China.
Danaher Motion is still weighing up its options. But Hussey emphasized that
it was crucial for the firm to localize not only its final assembly line but the
whole supply chain including finding local suppliers if it was to service its
local customers well.
Danaher Motion's existing factory makes motors for OTIS in Tianjin, but many
components are imported from the United States, which drives up costs and wastes
time on deliveries. Most materials for producing the components in the United
States come from China. "Therefore it is key to find local suppliers and OEM
partners," Hussey said.
He refused to identify local potential partners being contacted by the firm,
but said they are seeking quality control and management.
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