Magnetic attraction for EU SMEs

David Preston, president of Boehringer Ingelheim China, dots the eyes of a lion head during the ground breaking ceremony of the expansion of its Zhangjiang Plant in Shanghai in 2011. CHINA DAILY

Another German company, Boehringer Ingelheim AG, has spent $46.35 million setting up a joint venture in Shanghai and establishing itself as the first biopharmaceuticals manufacturer in China to use mammalian-cell culture technology.

"The gloomy outlook for the world economy makes China the single-most important emerging market for European small and middle-sized enterprises," says Christian Boehringer, chairman of the shareholders' committee.

The partnership with ZJ Base Co in Shanghai is an important step in Boehringer Ingelheim's strategy to meet the growing demand for high-quality biopharmaceuticals in China, Boehringer says.

"There are some small and middle-sized companies that have developed new medicines but have not come up with a set of matching manufacturing processes," he says. "We help them design ways of mass production, boost efficacy and achieve commercialization, so that their products will be licensed and find ways to market."

As markets become global, an increasing number of European SMEs are turning to exporting their ideas and efforts to other countries, says Chang Xinjie, public relations director at Haldor Topsoe (Beijing) Co Ltd, a Chinese subsidiary of the Danish catalysts producer.

In June, the company announced the purchase of land in Tianjin, North China, for a new plant that it expects to double its annual turnover.

Chang says the move is in line with Haldor Topsoe's strategy of strengthening and expanding cooperation between Denmark and China, with energy efficiency and environmental protection priorities on the Chinese government's agenda.

"In continuously driving toward greener economic growth, the Chinese government needs more and more advanced technology and solutions in agriculture, infrastructure, manufacturing, energy, environment and service sectors," Chang says.

"In these areas, EU SMEs do have something to offer and will be naturally attracted to the Chinese market."

Swiss electronic components manufacturer Huber+Suhner AG has made the single biggest investment in its history — $65 million — to establish a plant in Changzhou, Jiangsu province, producing low-frequency wire and cable products.

The products will be widely used in railway vehicles, solar technology and electric and hybrid vehicles.

Urs Kaufmann, company CEO, believes that China now possesses enough skilled engineers and researchers that it has not only become the biggest growth market, but also the powerhouse for the company.

"We believe in the growth of the Chinese market and, more importantly, customer proximity is key to our success," he says.