Shanghai invites Schattdecor to stay
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12/07/2001
Shanghai has become a mature market for foreign investors to run wholly-owned ventures instead of joint ventures due to its improved business environment, said Walter Schatt, president of Schattdecor AG. The German decor printing company has proved itself with a wholly-owned factory being built in the city's Kangqiao Industrial Zone. "Running a wholly-owned venture overseas conforms to our foreign investment philosophy that aims to create a peaceful society inside the company," Schatt said. "Shanghai is a place where we can get understanding from our Chinese partners and the conditions we need to run such a factory." Schatt played a leading role in the factory's ground-breaking opening, and conducted more than a year of investigation in China before he finalized his decision. As a new milestone in developing its business in China, the factory, which will be the sixth in the group, will become Schattdecor's latest production facility. Its first phase will cost US$20 million. "The investment is expected to go up to U$35 million within five years," Schatt said. The factory, the company's first in Asia, will produce decorative materials with imported raw materials and technology for the Chinese market. Its annual sales are expected to reach $40 million after it is put into operation. "The production capacity will expand as the market grows. The first necessity is to make money," Schatt said. "The Chinese market is positive and very good to our business, for top quality products are not yet available," he said. The new production facility of the global leader for printed decor paper is scheduled to take up work in the final quarter of next year. "The legal hurdles for the new factory have been cleared, indicating the high priority that the Bavarian decor printer accords to the Chinese project," Schatt said. The factory will initially be equipped with four printing machines, and has plenty of space to accommodate further market expansion in China.
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