Magnetic attraction for EU SMEs(2)

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.

Confidence in China's continued rise has also attracted the manufacturing group Halma Plc, a former rubber trader with headquarters in the UK.

"I think the track record of China's strong and sustainable growth has proved China's ability and that it can and will make further progress in a more balanced way," says Martin Zhang, director and chief representative of Halma Plc in China.

The company, with expertise in electronic, health and safety and environmental technologies, acquired the Hebei-based Baoding Longer Precision Pump Co to consolidate its growth in China.

Longer Precision Pump makes syringe and gear pumps used in laboratory, medical and industrial applications.

Zhang says acceleration of the European SMEs' investment in China shows the country has created a better business environment by simplifying investment procedures and improving transparency.

It also believes the competitive edge EU companies provide matches the country's economic development plan to move up the value chain and pursue high-tech industries.

"We focus our resources in the safety, medical and environmental industries. And these markets will grow strongly in China over many years to come," Zhang says. "China needs the help from other countries for their most advanced technologies and services."