Elektror establishes sales subsidiary in Beijing
10 Dec 2013 | Elektror
↑ Xin Chen (right), head of the Chinese Elektror subsidiary and its employee Shuang Xie
For more than seven years Elektror is represented with its own employee in China. Due to the constantly increasing demand of our customers on the Chinese market we decided at the beginning of this year to set up a sales subsidiary in Beijing. And so, since April 1st 2013 we are available for our customers in China with the Elektror Airsystems (Beijing) Co., Ltd..
"Many of our international clients in the machine tool industry already have a production base in China and are encouraged by their parent company to purchase locally. Basically, we feel a clear trend towards China, which we also had to follow now. This step is an essential part to ensure sustainable growth", explains Raimar Fendler, Member of the Elektror Management Board. Further Fendler explains that the legally independent entity in China is only meant to supply the Asian, in particular the Chinese, market.
In addition to strengthening our local presence also the laws of the Chinese state played a key role when it came to the decision to open a subsidiary in China. Many, especially smaller Chinese companies so far are not allowed to do cross-border trade transactions because they do not have a foreign currency account and no import license. Purchases at non-Chinese companies are therefore only possible via agents, which means that the products become too expensive due to different surcharges. Additionally high costs for logistics and customs make the acquisition even more expensive. These extra costs now are eliminated for our customers and also the import and export formalities are handled by Elektror.
With this subsidiary we want to become more flexible, stronger and more effective in the Asian region. More than half of the machine tool industry is already happening in China and also the suppliers will have to be present there sooner or later.« back