Daw Guangzhou Ltd launched its operations with a grand opening ceremony in Guangdong, the provincial capital, on Wednesday.

It is the first production facility set up on the Chinese mainland by the German coatings company.

"The world is getting more concerned with environmental issues such as reducing emissions and lowering energy consumption," said Ralf Murjahn, managing director of the company, which was founded in 1895.

"And China, being a great nation, has also become increasingly environmentally conscious and is actively looking for ways to reduce pollution while searching for recyclable energy sources.

"In this respect, Daw can offer patented energy-saving solutions to effectively reduce air-conditioning energy consumption in the vast Chinese market," Murjahn told China Daily.

Murjahn flew to Guangzhou from Germany on Tuesday evening to officiate at the opening ceremony. He believes the facility there has a bright future, as the Chinese market for energy-saving coatings and related building materials has great potential.

The Guangzhou facility, in the Yonghe Economic Zone in Huangpu district, covers 20 hectares and includes a manufacturing plant, storage house and office building.

Garson Lee, general manager of Daw Guangzhou, said: "We do not want to build a large company, due to increasing logistics costs. But we will establish more production facilities on the mainland."

Construction of the Guangzhou facility has cost 40 million yuan ($6.54 million) so far, Lee added.

Murjahn said another production facility is expected to be set up elsewhere on the mainland in two to three years.

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