US-based safety testing and certification giant Underwriters Laboratories Inc (UL) launched its first overseas presence on Monday by establishing a joint venture in China, making it the first step for an international expansion.

With a total investment of US$15 million, the 50-50 joint venture with the China Certification & Inspection (Group) Co (CCIC) - China's largest inspection company - will be based in Suzhou, a city neighbouring Shanghai, China's business hub.

The joint venture, UL-CCIC Co Ltd, will offer testing and certification services for China's manufacturers - a must for many export-oriented products when seeking a wider access to world markets.

And its major customers include Chinese manufacturers of lighting products, audio-visual and information technology equipment, small appliances, fans and motors who are eyeing the US market.

Currently, over 9,000 manufacturers in China have acquired UL certification. But prior to the move, all testing services for products of Chinese origin had to be done in the United States, which cost the applicant companies much time and money.

"The establishment of UL-CCIC is a milestone development in China's public safety and certification industry, and will greatly facilitate international trade between China and the world," said UL President and CEO Loring Knoblauch.

According to Ul-CCIC General Manager Douglas Johnson, the new joint venture will also bring increased local capabilities for management systems registration, such as ISO9000, ISO14000 and TS16949, as well as commercial inspection and testing.

Being the largest certification organization in North America, UL is also planning to establish branches in other Asian economies, notably in Japan and Southeast Asia.

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