Meet the German Centres - German Centre Singapore

Transcription

Moscow
Beijing
Taicang
Delhi.Gurgaon
Mexico City
Singapore
Jakarta
Meet the German Centres
In Singapore and worldwide
Shanghai
4
5
Anniversary Greetings
Professor Dr. techn. Dr.-Ing. E. h. Berthold Leibinger
TRUMPF GmbH + Co. KG, Ditzingen
–
–
–
huanyíng nín!
–
apaka svagata hai!
willkommen!
¡bienvenido!
selamat!
dobro pozhalovat'!
welcome!
It is a great pleasure for me to have been invited
to the 20 th anniversary of the German Centre for
Industry and Trade in Singapore. I remember very
well the Groundbreaking Ceremony in 1993 and
the opening Ceremony in 1995. This building made
history and it was the beginning for seven more
German Centres all over the World from Mexico
over Russia to China.
east Asian countries.
Hardworking people who
are intelligent and accept
technological progress,
large natural resources
and huge markets are assets which guarantee a
positive development.
But the idea of a German Centre is even much older.
I have heard a remarkable speech of Mr. Lee Kuan
Yew in Switzerland, at the end of 1980s, where he
pointed out, that it would be a tragic mistake of
the European industrialists to forget the growing
markets in Southeast Asia.
And secondly, the rising demand in this area for more
sophisticated technology a demand which the highly
specialized German industry can satisfy perfectly.
We heard his message, picked it up and one of the
results to enhance our presence in the Asian Region
was the German Centre in Singapore. A platform for
many companies, mainly small and medium-sized
companies, to increase their activities not only in
Singapore but also in the neighboring countries
throughout the region. Lee Kuan Yew was right
and I am sure he would be glad today celebrating
the 20 th anniversary with us.
In retrospect the economy
in Singapore and also in
Southeast Asia developed
as successful as assumed
and for many German companies the access to the
Asian markets would have been much more difficult without the support of the German Centre in
Singapore.
At the beginning I saw two basic reasons for our
presence in Singapore.
First of all, the confidence in an ongoing dynamic
growth in Singapore and also in the other South-
One of the main reasons for the implementation of
a German Centre in distant markets was to provide
offices, exhibition and assembly space as well as
the required services. Today, over 140 companies
find a stimulating atmosphere and synergies from
the presence of other German firms in the building.
This cooperation in the German Centre in Singapore
was and still is very important especially for small
and medium-sized companies – and they represent
the majority of the German industry. Furthermore
Singapore with its excellent infrastructure is the
ideal hub for the entire Southeast Asian region.
The achievements of the first two decades of the
German Centre are remarkable and I would like to
wish every success and good luck to all companies
working and operating in this house.
6
Introducing address of the investors
Michael Horn, Deputy Chairman of the Board of Managing Directors of Landesbank Baden-Württemberg
Michael Bücker, Member of the Board of Management of BayernLB
Dr. Ulrich Theileis, Deputy Chairman of the Executive Board of L-Bank
„With our pilot project German Centre Singapore we started
something that is of highest value to our corporate customers and
to the customers of the savings banks. They now have a banking
partner who not only provides solutions for the financial side,
but also offers an answer to strategic questions about business
development and expansion.“
Michael Horn
Deputy Chairman of the Board of Managing Directors of
Landesbank Baden-Württemberg
Dear Reader,
The German Centre story first began 20 years ago with the opening of the
German Centre Singapore and the German Centre Shanghai. In the following
years, the German Centres Indonesia, Beijing, Mexico, Delhi.Gurgaon, and
Moscow started operations. The latest German Centre in Taicang is opening
its doors at the end of 2015.
The German Centres follow one guiding principle:
How can German companies be supported in expanding their business in
challenging markets?
Since 1995, more than 2,000 companies have taken advantage of the unique
German Centre concept to help them establish and run their business abroad.
They value the flexible office solutions that can expand to meet the growing
needs of successful companies. They appreciate the presence of the German
Centre management and team who are always on hand and who offer partnership on an equal footing. They benefit from the German Centre’s efforts
to connect companies and people and thus provide a huge wealth of business
experience and knowledge.
In short:
Companies feel comfortable in the German Centres.
federal and state ministries, we would not have been able to succeed the way
we have succeeded.
We would also like to thank the host countries for their recognition and hospitality. We are deeply honoured by the warm reception we continue to receive.
We have come to feel not just like business partners but also like friends.
Going forward, we continue to welcome the ideas and impulses of our supporters. They are essential in helping us to adapt and improve the services provided
by the German Centres. It is our explicit goal to be the partner of choice into the
future and to provide a partnership that is in line with our fundamental idea:
from entrepreneur – to entrepreneur.
This publication gives you an insight into the German Centres’ world and understanding. For each topic, we focus on one German Centre to illustrate and
represent the German Centres’ USPs, how we work, how we collaborate with
tenants and partners and how we react to trends and developments.
Michael Bücker
Member of the Board of Management of BayernLB
We hope you enjoy reading this publication and look forward to welcoming you
in our German Centres – as a visitor, as a tenant, as a friend.
“The German Centres themselves are medium-sized companies
operating abroad which we found, manage and continually adapt
to new requirements. That’s why we are not just one adviser
among many, but rather a credible and reliable partner who
knows what matters.“
Best regards
As the investors, we would like to take this opportunity to thank all the
supporters of the German Centres!
Without the acceptance, ideas and commitment of tenants, the entrepreneurship of the companies, and the support of business associations such as
the German Chambers of Industry and Commerce and the VDMA, as well as
“Our German Centres demonstrate our long-term commitment
towards our host countries as well as towards our tenants and
friends. This is how, over time, we build up the necessary expertise,
which we are happy to pass on to others. And you don‘t have to be
a tenant or a customer of the investors to benefit from this.“
Michael Horn
Michael Bücker
Dr. Ulrich Theileis
Dr. Ulrich Theileis
Deputy Chairman of the Executive Board of L-Bank
7
8
German Centres worldwide
German Centre Moscow
Opened in 2011
Lettable area 19,000 sqm
German Centre Beijing
Opened in 1999, expanded in 2015
German Centre Taicang
Opening in 2015
Moscow
German Centre Mexico
Opened in 2001
Beijing
Taicang
Delhi.Gurgaon
German Centre Shanghai
Opened in 1995
Mexico City
German Centre Delhi.Gurgaon
Opened in 2008
Shanghai
Singapore
Jakarta
German Centre Singapore
Pilot project opened in 1995
German Centre Indonesia
Opened in 1998
9
10
Voices from the German Centre world
“AHK Mexico is glad to cooperate
closely with the German Centre’s professional
service management and great staff, who are willing to
help solve everyday issues. We appreciate the availability of
additional training rooms, which are of great value for our
projects. We wish the German Centres a lot of success,
prosperity and many more years of constant
growth!”
Andreas Müller
Director General Adjunto de CAMEXA,
Cámara Mexicano-Alemana de Comercio e Industria
“The German Centre is a
good place to work and set up business
in Indonesia. It is run by a professional and
helpful team. What I love the most is the people,
who are sincere and make me feel part of the
German Centre Family.”
Dyah Ita
Associate Director,
Colliers International
“We are a
trade show company, so the
nature of our business is interaction. People
meet, and this is obviously what we are looking for in the
German Centre. This building is centred around a structure that
can facilitate meetings, and also I think the service is very
good. Sometimes there are problems, but there is always
someone who can solve it for us. And that’s a
nice package, I would say.”
Heiko M. Stutzinger
Deputy General Manager,
Messe Düsseldorf (Shanghai) Co., Ltd.
“I enjoy
working for the German
Centre Moscow very much because it is so
rewarding helping tenants every day and seeing
their grateful smiles afterwards! It gives you the
feeling that you, too, are supporting their
business with your work.”
“I like the German Centre
because it provides an excellent
gateway for German companies willing to
start their business in India. The infrastructure
as well as the unmatched services offer the best
possible conditions for our business.”
“The German Centre Singapore
is our pilot project. This is where we have held
intensive discussions with companies, industry
associations and ministries, nailed down the concept and
then developed it further. I hope that we can continue with this
exchange of ideas in the future, with the same level of intensity.
As an investor, it gives us a sense of certainty that we are in
the right place – and that we are creating real added
value for our customers at home.”
Guido Paris
Chairman of the Board of Managing Directors,
German Centre Singapore and Head of International Business,
Landesbank Baden-Württemberg
Anastasia Didion
Business Development Manager,
“The German Centres are
independent, medium-sized companies operating
abroad, integrated in the overall German parent company.
That’s why they are familiar with the kinds of challenges that,
sooner or later, our tenants are confronted with. It’s great that we
can pass on this entrepreneurial experience in our very first
conversations with them, and so provide a helping hand early
on in overcoming the stumbling blocks. I think that makes
us a credible and equal partner.”
Gabriele Greiner
Managing Director,
German Centre for Industry and Trade GmbH
“We are glad to cooperate with
an organization that shares our company values:
the German Centre staff provide individual customer
care and always strive to be excellent in what they
do. Thank you very much!”
Torsten H. Jaschan
General Manager Finance & Administration and
Member of the Regional Management Board Europe-East,
Klüber Lubrication Russia
Tom Schumann
Managing Director,
LIFTKET India Pvt. Ltd.
“The idea is more than 20 years
old, but still fascinating. Medium-sized
engineering companies can find in the German Centres
a “German platform” for their business activities in
emerging economies with high growth potential.
We need more of these successful
institutions worldwide.”
Ulrich Ackermann
Managing Director Foreign Trade,
German Engineering Association (VDMA),
Frankfurt/Main
“I have been
working for the German Centre
Delhi.Gurgaon right from the beginning – and it
is almost my second home. I enjoy working there
because we work together like friends and are
not treated like a kind of resource.”
Dhiren Sahoo
Accountant, German Centre Delhi.Gurgaon
11
12
13
Our tenants – their successes
Intercultural management consultancy
ICUnet Shanghai has just celebrated its third
birthday. The intercultural management consul-
Moscow
Indonesia
Beijing
tancy with headquarters in Passau and many
Cable carriers, flexible electric cables, telescopic covers
Contacting high-current conductors, insulating high voltages
Perfums and flacons
DAX-listed clients, first made the move to China in
and conveyor systems segments
The German PFISTERER Group established a representative office in the German Centre Beijing
Drom has been creating and producing extraordinary fragrances since
2012. “China is one of Germany’s biggest export partners. We came here because
Russia, Belarus, Kazakhstan and Azerbaijan: OOO Tsubaki Kabelschlepp has been op-
in 2006. At the beginning there were just three staff. Today PFISTERER in China has grown to a staff
1911. Headquartered in Munich, the company has operated an office
we wanted to be closer to our clients who are doing business here,” says Sara
erating across the entire region from its base in the German Centre Moscow since 2012.
of around 100, with a fully owned company and a manufacturing site. “We are present throughout
and laboratory at the German Centre Indonesia since November 2013
Monteiro, Managing Director China. The company provides coachings, trainings
“Over the past few years the business has developed very well in Russia
China, from the far north, reaching into Mongolia, down to Hong Kong in the south,” says Jan-Hen-
and is now one of the world´s top ten fragrance houses.
and consultancy projects for international companies operating in China and
and Eurasia,” says Chief Executive Officer Michael Judis. In December
rik Wilhelm Kuhlefelt, Managing Director of PFISTERER Power Connection Systems in Beijing,
vice-versa, such as Chinese-German joint-ventures, many of which are in the
2012 the Japanese listed company, Tsubakimoto plc Group, founded its
whose office is still in the German Centre Beijing. “This is the biggest market for power transmis-
car manufacturing industry. “We support them in bridging the cultural gap and
subsidiary in Russia – today several employees work there. Tsubaki
sion and distribution products in the world. When we first started out it was quite different from
creating synergies between the two cultures.” The German Centre was a natural
Kabelschlepp is a market leader in Russia, and a world-wide
today,” he says. “Today, there is strong competition from local Chinese companies. Our products
choice of location. “We are German at heart and the German Centre stands for
key player for cable carriers, flexible electric cables, tele-
and customer service have
German quality. The German Centre network has helped us set foot and expand.”
scopic covers and conveyor systems segments.
to be of the highest quality to
Increasingly, ICUnet is finding new clients among Chinese companies wishing to
meet Chinese requirements.
expand to Europe.
It’s a good challenge to have!”
Shanghai
Mexico
Intelligent running gear systems for trailers and semi-trailers
Contact probes and probe cards
Software-based process solutions
BPW is the world’s leading manufacturer of intelligent running gear systems for
The Mittelstands (SME) technology company Feinmetall, a specialist in contact
“Software-based process solutions have been installed at eighty percent of companies in
trailers and semi-trailers. In 2010, they set up an office at the German Centre Delhi.
probes and probe cards, opened its sales office in the German Centre Mexico
Europe. In Asia, most people we speak to aren’t even aware that solutions of this sort exist.
in 2008. There are many organisational challenges in entering a new market, in-
Yet here, too, costs for business processing are increasing, as are our business opportu-
cluding company registration, opening a local bank account, hiring and managing
nities.” In 2012, Volkmar Ahrens, Managing Director of the software company WMD Asia
staff. In all of these, the firm from Herrenberg in Baden-Württemberg benefitted
Pte Ltd, moved into the first office in the German Centre Singapore. Since then, WMD Asia
Gurgaon to explore the market potential of the Asian subcontinent.
Transport and logistics are core components of India’s growing economy, providing the prerequisites for success
from customised solutions offered by service providers in the German Centre.
has increased its office space twice, expanding from 30 to the present 130 square metres, for ten employees. The young privately
commercial vehicle trailer systems. After
Feinmetall started its sales office with two members of staff and now has eleven
owned business from Ahrensburg, Germany, specializes in SAP solutions that automate the processing of invoices, sales orders,
four years, BPW was ready to take
people working there. Today, Feinmetall is among the leading companies develop-
purchases orders, and other business documents. “From our Singapore base we have acquired well-known reference customers
for the North Rhine-Westphalian manufacturer of
ing and manufacturing contacting
in many Asian markets and have been able to drive our expansion forward,” says Volkmar Ahrens. WMD’s Asian customer base
in 2014, set up a manufacturing
solutions to test electrical and
includes the automobile manufacturer Brilliance China Automotive, the worldwide leader in manufacturing air conditioning
unit with ten employees.
electronic components for the au-
systems Daikin from Japan, Philippine’s largest pharmaceutical
tomobile industry in Mexico, and it
company United Laboratories, and the canned fruit manufacturer
is the exclusive service provider for
Del Monte, as well as many more in India, Thailand, Malaysia,
the companies Delphi and Yazaki.
Laos, Myanmar, and elsewhere.
the business to the next level and,
Delhi.Gurgaon
Singapore
Taicang
We look forward to welcoming our
first tenants in December 2015.
14
15
A journey through time
Opening of the
01
Opening of the Opening of the
German Centre Singapore German Centre Shanghai
German reunification
95
99
Opening of the
98
Opening of the
The first cloned
mammal, sheep
Dolly, is born
Maastricht Treaty
is signed
...
1990
...
1992
1993
1995
1996
1997
1998
Market share of digital
cameras exceeds that of
conventional cameras
The ASEAN Free Trade Area
(AFTA) that was founded in
1991, enters into force ahead
of time
Euro was
introduced as
an accounting
currency in
ten countries
Celebrating the FIFA World
Cup in Germany
The social network
Facebook starts
(2015: 1,5 billion members)
EU enlargement:
ten more countries join
The first
smartphone,
the Apple
iPhone,
is launched
End of the DM,
introduction of
Euro cash in the
European Union
1999
2000
2001
2002
2003
2004
2005
2006
2007
16
17
Seizing opportunities...
15
Opening of the
Opening of the German Centre Taicang
scheduled for December
08 11
New building
of European
Central Bank in
Frankfurt opens
Opening of the
Barack Obama
inaugurated as
44th president
of the USA
u 142.9
v 2014/2015: 53
2010/2011: 63
w 2015: 62
2010: 120
x 1,861
y 12,735
z 6,200
Germany
GDP growth in %
2012
2013
2014p
2015p
3.4
1.3
0.6
-4.0
u 1,243.3
v 2014/2015: 71
2010/2011: 51
w 2015: 142
2010: 133
x 2,067
y 1,596
z 300
u 118.4
v 2014/2015: 61
2010/2011: 66
w 2015: 39
2010: 51
x 1,283
y 10,230
z 1,000
One World
Trade Center
in New York
opened
Arab Spring
2009
2010
2011
2012
2013
u 1,360.8
v 2014/2015: 28
2010/2011: 27
w 2015: 90
2010: 89
x 10,360
y 7,594
z 5,200
GDP growth in %
2014
2015
7.8
7.6
7.4
7.2
2012
2013
2014p
2015p
Indonesia
GDP growth in %
2012
2013
2014p
2015p
u 248
v 2014/2015: 34
2010/2011: 44
w 2015: 114
2010: 122
x 889
y 3,492
z 1,800
5.1
6.9
7.4
7.9
Legend
GDP growth in %
2012
4.0
2013
1.5
2014p
2.1
2015p
3.0
Sources: LBBW Research, Worldbank Group, IMF, DIHK, AHK, gtai
2008
GDP growth in %
2012 0.6
2013 0.2
2014p 1.6
2015p 1.8
India
Mexico
The European
Union is honoured
with the Nobel
Peace Price
u 80.8
v 2014/2015: 5
2010/2011: 5
w 2015: 14
2010: 25
x 3,853
y 47,627
China
GDP growth in %
2012
2013
2014p
2015p
Germany wins
FIFA World
Cup in Brazil
Edward Snowden reveals
global NSA spying programs
Foundation
of the Pacific
Alliance
Russia
u
v
w
x
y
z
Population 2013 (mn)
Global Index of Competitiveness
Ease of Doing Business
GDP in bn USD 2014
GDP per capita in USD 2014
German companies
Singapore
u 5.4
v 2014/2015: 2
2010/2011: 3
w 2015: 1
2010: 1
x 308
y 56,287
z 900
GDP growth in %
2012
3.4
2013
4.5
2014p
3.0
2015p
2.2
6.0
5.6
5.0
5.2
18
Designed for
Networking
Exotic green and feng shui welcome visitors to the German
Centre in Singapore. In Delhi, the entrance hall evokes India’s
palaces, an acknowledgement to the subcontinent’s great culture. The lobby in frosty Moscow, by contrast, is defined by icebergs and ice floes. The design of the latest German Centre,
opened in Russia in August 2011, reflects the character of its
host country on all floors. We take a tour.
The architect
Sergei Estrin, today a renowned Russian
architect, developed the design concept. The German Centre Moscow was
awarded the prestigious Russian architecture prize “Best Office Award 2012”.
The lobby walls glisten like tall icebergs and the ceiling is fissured like drifting
ice floes – the moment you step into the German Centre Moscow you can feel
the special atmosphere. “The references to the host country provide a topic of
conversation and break the ice between new business partners meeting for the
first time in the foyer,” explains Managing Director Stephan Weiss.
19
Welcoming and vibrant:
The ground floor
Concentrated and communicative:
The office floor
Inspiring and exciting:
The visual concept
No other office block in Moscow offers such a welcoming and also functional entrance hall: a lounge, a bistro and a large conference space on the ground floor.
The building and furnishing design offers space to
work and an open atmosphere for conversations
and networking.
The design conveys the relationship with the host
country and gives the German Centre Moscow its
own character.
First class lobby
As you step into the German Centre, in the reception area, it
feels like you are in a high-class hotel. A relaxing lounge with
comfortable armchairs and soft sofas invites you to spend a
while and chat. Next to this is a quieter area for working and
a waiting room. They are all at slightly different levels so that
business partners and guests are all in view.
Offices from 40 square metres
For newcomers who are just establishing business relationships, small offices are a cost-efficient option. The German
Centre Moscow offers a large number of small spaces from
40 square metres, as well as larger spaces.
Frost concept
The visual design reflects the Russian cold. The ten-metre
high walls in the lobby recreate the idea of icebergs; the
20 x 40 metre ceiling symbolises the cracked surface ice of
a winter river.
Lively bistro
A bistro offers the chance to get together with colleagues
and other companies.
Wide corridors and generous kitchenettes
Spacious corridors stretch across each floor. Central kitchenettes provide the opportunity to strike up an informal conversation with other tenants.
Colour concept
Each floor is defined by its own colour.
Large conference area
Conference rooms in Moscow are a scarce commodity. The
German Centre offers its tenants spacious, functional meeting and conference areas for 4 to 150 people.
High quality furnishings
Quality-conscious but not pretentious: for the furnishings
and interior decoration an investment was made in German
brands like Interstuhl, Villeroy & Boch, Keuco, Schell, Dorma,
Vorwerk, Mero TSK, Warema, Knauf, Grohe, Rolf Benz and
Siemens. Their durability contributes to lower running costs.
Illuminated façade
The German Centre is the only building in the south of Moscow with an illuminated façade. From dusk till dawn, the
colours change every 30 seconds, from green to blue, red,
purple, orange and yellow. At the weekend, the building is lit
up in rainbow colours.
“The references to the host country provide
a topic of conversation and break the ice
between new business partners meeting for
the first time in the foyer.”
It’s evident on all floors – the German Centre Moscow has character. A first
class lounge and a bistro on the ground floor, as well as modern kitchenettes
on all floors, provide an opportunity for informal conversations. “We want to
give our tenants the room to get to know each other, to exchange information
and benefit from each others’ experience,” says Weiss. “A sterile atmosphere
like you find in other office buildings in Moscow, where people go straight to
the lift in the morning and disappear for the rest of the day into their offices, is
not what we want.”
Weiss was involved in the project development from the outset. From the decision about the location to the concept and the handover, he has been closely
involved in the development of the building and consistently brought to bear his
many years of experience as Managing Director of the German Centre Singapore – small offices for newcomers, larger communal spaces and kitchenettes,
a functional conference space, high-quality furnishings and rental prices that
SMEs can afford. The metro station is right at the front door, you can get to the
airport quickly, and there are restaurants and shopping malls nearby.
“A German Centre is a pacemaker for
business success: innovative and functional.
With German DNA and local flair.”
Sustainability and functionality in the development were provided for by LBBW
Immobilien Management GmbH. Air conditioning and lighting are controlled
centrally. Energy efficiency has been taken into consideration even in the
choice of window glazing. The IT system is state-of-the-art. When it came to
fittings and furnishings, great store was laid on long-lasting German quality. In
short, “A German Centre is a pacemaker for business success: innovative and
functional. With German DNA and local flair. Perfectly designed for networking,” says Weiss.
20
In good
company
The fact that Germany is China’s most important trade
partner in the EU results from, at least in part, the German
Centres in Beijing and Shanghai. They provide German
companies with a home and vital support in this dynamic
and fast developing country.
21
Beijing and Shanghai are massive metropolises. With over 20 million inhabitants each, the streets buzz day and night with people and traffic. “You can
feel how big Beijing is, and it can be overwhelming,” says Jörg Höhn, Managing
Director of the German Centre in Beijing.
China has developed rapidly over recent years into a strategic market. Beijing,
as the capital and centre of decision making, is the core for economic development. Regional integration with the surrounding provinces Hebei and Tianjin
brings the total local inhabitants to 105 million, with Beijing as its hub. Some
studies predict it will one day become one of the largest city economies in the
world. In 2013, it already had more Fortune Global 500 company headquarters
than any other city. Its recent successful bid for the 2022 Winter Olympics has
given it a further boost.
Shanghai, meanwhile, has developed into the trade, financial and service
centre of the country. Living conditions are said to be the best in China and its
transport infrastructure makes it a gateway to the world.
“First there is the language barrier – it’s a shock to
realise you can’t read anything. Then there is the
challenge of navigating China’s regulatory system.”
The question for German businesses looking to establish themselves in China
is, how do you make the most of all this potential? The challenges are not to
be underestimated. “First there is the language barrier – it’s a shock to realise
you can’t read anything,” says Höhn. “Then there is the challenge of navigating
China’s regulatory system.”
The German Centres’ aim is to provide a helping hand from day one, and its
staff – a mix of German and Chinese nationals – offer a huge pool of experience. “We are a one-stop shop. We help companies set themselves up, but we
also recommend where to go to lunch – we are open to every kind of question,
from complex commercial ones to basic survival,” says Höhn.
The German Centre Beijing’s tagline is “Doing business in good company,” and
good company really is at the heart of it. “We have 110 companies here, their
range reflecting the economic structure of Germany. Our tenants’ list is like a
who’s who of the German Mittelstand,” says Höhn. “We provide a platform to
bring these companies together and facilitate exchange. It is a great advantage to be able to share experiences and advice. The tips they get from their
neighbour tenants are often the most reliable and, of course, they are free of
charge. Whether they are from the same or different industries, in the end, the
challenges of doing business in China are similar for everyone.”
One of the German Centre Beijing’s tenants is Liebherr, a classic Mittelstand
success story. A company that started in construction 60 years ago, it has since
diversified and established itself worldwide. The first Liebherr representative
office in China was opened in Beijing in 1978. Today, it plays an important role in
construction projects across the country. Liebherr (Xuzhou) was one of the very
first tenants when the German Centre Beijing opened in 1999. “The business
area for foreign companies was growing and we saw it was the future,” says
Willy Zhang, General Manager of Liebherr Machinery (Xuzhou). The location
meant we were nearer to our customers and easier to reach for visitors – and
the price was competitive.”
The location is not just convenient, with easy access to the airport, public
transport system, government bodies and universities, it is also ideal for contact to other German institutions, with German companies like BASF, Volkswagen, Lufthansa, or Kempinski and the Embassy and German school round the
corner. For Liebherr, this is an important factor. “We are proud to be a German
company,” says Zhang.
Liebherr may be an old hand at tackling China’s regulatory system but, for
many others, the legal and technical seminars offered by the German Centre
are essential. “We want our tenants to know what’s happening before it hits
them,” says Höhn. In addition, the German Centre provides a forum for discussions with industry bodies such as the VDMA (Verband Deutscher Maschinenund Anlagenbau) – the German Engineering Federation – and with the
German Chamber of Commerce, a contact that Liebherr, too, finds useful. “We
regularly talk to them about environmental projects and the development of
green technologies,” says Zhang.
Infrastructure and the environment are top of the agenda for Beijing, and
German companies are sought after for their smart solutions. Although growth
in China has slowed, it is still healthy. “The ‘new normal’ is 7% instead of 11%.
There is still plenty of growth potential here in Beijing,” says Höhn. Which is
one reason why the German Centre Beijing is expanding, with a second building
opening in summer 2015. Like the original building, it will provide the same level
of service and the same open atmosphere for networking and exchange.
“We are the interface between the two communities.
A German Centre’s aim is to bring people together.”
As one of the oldest tenants, Mr Zhang and his staff are often approached by
newer tenants for advice. “Relationships between the tenants are very open,”
says Zhang. Problems can be addressed together and co-operations can arise,
such as sharing e-learning and translation services. “It’s a relaxed environment.
There are many social events and our staff enjoy getting to know the others.”
From Easter egg painting to hiking along the Great Wall, the events are popular
with locals and expat tenants alike. “We are the interface between the two
communities,” says Höhn. “A German Centre’s aim is to bring people together.”
22
Sustainable Strategy
The German Centre in Singapore has been a sought-after hub for German SMEs in Southeast Asia for two decades. Sustainability is key
– in the long-term relationships with tenants as well as in the environmentally-friendly modernisation of the building, which has received
several awards for its exemplary sustainability management.
It was a moving moment when the former Prime Minister, Lee Kuan Yew, who
led the small island state to independence and prosperity during more than
three decades in office, visited the German Centre Singapore a few months
after its opening in 1995. A moment that Steven Chen Wei Ngiap, Managing
Director of Reintjes,
Asia Pacific, remembers
“It was a good idea to found a
to this day. “It was very
German Centre in Singapore.”
impressive,” he says,
recalling the meeting
with the great statesman who made history as the political architect of modern
Singapore and gained respect around the globe for his strategic vision. “It was
a good idea to found a German Centre in Singapore.”
Wei Ngiap was one of
the first tenants. From
his Singapore office, he
manages the business
across the Asia Pacific
region for the Hamelnbased engineering systems provider company
– a specialist in marine
propulsion and industrial gearboxes. “At
the beginning we had
a very small office,” he
Steven Chen Wei Ngiap, Managing Director of Reintjes,
recalls. “Today, 12 staff
Asia Pacific
work here in a space of
300 square metres and
generate about 40 percent of Reintjes’ global turnover. Singapore is a very important hub for our company in the entire region.”
Eleven of the current 150 tenants moved into the German Centre Singapore in
1995. Among the first to unpack their boxes were the teams from Reintjes and
The lighting system was also designed in an energy efficient way: LEDs were
fitted and motion sensors installed. Water consumption in the toilets and kitchenettes was reduced through the installation of pressure valves. The waste
management system was improved. Electronic waste is now consistently collected and disposed off. CO2 sensors were installed in the car park to measure
exhaust emissions – previously the ventilation system was constantly running.
There are now charging stations for electric cars – part of a test network for
e-mobility in Singapore, installed in cooperation with Bosch. Further measures
are in the planning. “We want to design the façade in a way that is more energy-efficient and optimise shading – we still have too much sunlight coming into
the building,” says Böhme.
Trumpf, Baden-Württemberg’s global leader in tool engineering, laser technology and electronics for industrial applications. “When I took over the management of the German Centre in Singapore in 2011, tenants came up to me and
told me proudly, ‘I was here from the very beginning,’” says Hanna Böhme,
Managing Director. “For many German companies, Singapore has proven to be
the first step into the Asian market and an ideal springboard into the ASEAN
states. The German Centre is an integral part of their success story.”
That’s why many of them extend their contracts every two years and expand
with time. “We value having sustainable relationships with our tenants,”
says Böhme. “The German Centre is, after all, not just an office building,
it’s a local network – a people business.” Close relationships and long-term
collaborations with important points of contact for German businesses, such
as the chamber of commerce, lawyers, notaries and the local branch of the
Landesbank Baden-Württemberg (LBBW), all pay off. They are all based in
the German Centre.
There are regular communal events where people can get to know each other
and exchange experiences. Hanna Böhme has even organised the fire drills
so that they can be used to the tenants’ advantage: after the obligatory drill,
a barbecue with sausages and beer is set up outside. Some tenants enquire
about the date months in advance to avoid booking a business trip on this day,
Böhme says. “This get-together is not just for the management, but first and
foremost for the local staff – the administrative assistants, the sales team, the
support staff – because many of them have been involved for a long time and,
23
with their experience, form the very basis of the company.” She always has an
open ear for suggested improvements. “Our feedback is taken seriously and a
lot has been improved in the building,” confirms Reintjes’ Managing Director
Wei Ngiap.
“We set our ourselves the highest goal:
the sustainability certificate ‘Green Mark Platinum’.”
The overall condition and infrastructure of the German Centre is regularly evaluated. “After all, there are many alternatives in Singapore, and we are dealing
with business people who compare in detail the pros and cons with other places,” says Böhme. When it comes to refurbishment and modernisation, today a
conscious effort is made to invest in sustainability. For example, when the air
conditioning required an overhaul two years ago because it had reached the
end of its lifespan, one thing was clear for Hanna Böhme: “We set our ourselves the highest goal: the sustainability certificate ‘Green Mark Platinum’.”
The Green Mark, which differentiates between four efficiency standards, is
awarded by The Building and Construction Authority of Singapore (BCA) to
buildings that are built and maintained in way that is energy- and water-efficient and environmentally friendly. The political aim is to have 80 percent of all
buildings in Singapore certified as sustainable by 2030.
Modernising an air conditioning system in the tropics in a building with 150
tenants during normal operations is a challenge of a special kind. Nevertheless,
everything went according to plan: 2014 saw the completion of the upgraded
system. An intelligent, centrally-controlled system was installed that is connected through sensors and thermostats to every office, allowing occupants to
regulate the temperature individually.
“That is why we want to make a contribution
toward everyone behaving in a more environmentally
friendly way, whether it means swapping the car
for a bicycle, not leaving water running needlessly,
or disposing of batteries correctly.”
The German Centre also provides showers for
its tenants to encourage them to cycle to work.
“Politics in Singapore is constantly driving environmental goals forwards and communicating
these boldly to the outside world. However,
among the local population, environmental
awareness in their daily routines is not yet particularly pronounced,” Böhme observes. “That
is why we want to make a contribution toward
everyone behaving in a more environmentally
friendly way, whether it means swapping the
car for a bicycle, not leaving water running
needlessly, or disposing of batteries correctly.”
The German Centre Singapore’s comprehensive BCA Green Mark Platinum Award
sustainability management system has received
a number of rewards. In addition to the “BCA Green Mark Platinum”, the building has been awarded a certificate for water efficiency as well as the “Energy
Efficiency National Partnership Award 2014” (EENP Award) in the category
“Excellence in Energy Management”. The award is given by the National Environmental Agency, the Energy Market Authority and the Economic Development Board, “to foster a culture of sustained energy efficiency improvement
in industry”.“For our tenants, we want to be a partner that is aware of its responsibilities and forward-looking”, says Böhme.“Therefore, we invest at the
highest level in sustainability.”
24
Venturing into
new territory
25
to live. “Many Germans are now working and living in Taicang. It has lots of
restaurants, a German bakery and German butcher. There are far fewer traffic
jams, rents are lower and the air is better,” says Müller. “And for an industrial
city, it’s very green. You can see that the city government has put in a lot of effort. They have had advice from German companies located here, like Schaeffler and Continental, and have set the benchmark in terms of the environment.”
“This is what a German Centre can provide.
We are now seeing a high interest from these
service providers wanting to make use of the
German Centre platform to go to Taicang.”
All that is still missing is the German service infrastructure. “This is what a
German Centre can provide,” says Müller. “For law firms, auditors, IT or HR
consultants that offer an international level of service, you still have to go to
Shanghai. But we are now seeing a high interest from these service providers
wanting to make use of the German Centre platform to go to Taicang.”
German companies operating in China are increasingly attracted by
the lower costs and convenience of the 2nd and 3rd tier cities in this
fast-developing country. The German Centre is moving with them,
providing the same service quality that has led to success elsewhere.
Beijing and Shanghai are no longer the automatic choice of location for an increasing number of German companies setting up in China. More and more
smaller and mid-sized businesses are now choosing instead to establish themselves in 2nd and 3rd tier cities like Taicang, encouraged by the Chinese central
government’s policies to bring jobs and prosperity to these other regions.
Just 45 minutes by car from the centre of Shanghai and well-connected to the
public transport network, Taicang has been an attractive location for foreign
companies for a number of years. It is in the middle of one of the most commercially dynamic provinces in China, where the economy is driven by family
enterprises similar to the kind found in Germany. The city itself is home to SMEs
from a wide range of industries, including automotive, machine construction,
foodstuffs, apparel, electronics and energy, among them 250 German companies, many of whom have based their production facilities here.
“We are seeing more and more investment going outside Shanghai,” says
Christian Sommer, Chairman and CEO of the German Centre Shanghai. “When
we look at where German businesses are going today, it’s not just Beijing or
“We are seeing more and more
investment going outside Shanghai.”
Shanghai anymore. They are establishing themselves all over China, in the 2nd
and 3rd tier cities. We want to go where they are going. That’s why we decided
to set up a German Centre in Taicang.”
The German Centre Taicang is a wholly-owned subsidiary of the German Centre
Shanghai and will provide a home for German businesses in this neighbouring
city. “It’s an excellent choice for our first move outside the 1st tier cities,” says
Matthias Müller, Managing Director of the German Centre Taicang. German
companies are attracted by the lower costs of the lower-tier cities, but that’s
not the only draw. Compared to the mega cities of Shanghai or Beijing, Taicang
with just one million inhabitants is a very manageable size and a pleasant place
One such service provider is Schindhelm, a mid-sized German law firm with
headquarters in Osnabruck. A long-standing tenant of the German Centre
Shanghai, the company has decided to expand to Taicang. “We see it as an
opportunity to grow our business,” says Raymond Kok, Partner and Attorney-at-Law at Schindhelm. “We have a lot of clients located there whom we
helped to establish. We want to be close to them so that we can service them
better, but also, with the density of German companies in Taicang, we have a
huge pool of potential new clients.”
Proximity is important. The German community in Taicang is relatively small
and, therefore, very close-knit. “It means you have to be there to be recognised
as one of them,” says Kok. “If you are based in Taicang, rather than Shanghai,
you stand out.” Many of the German managers in Taicang have been in China
The Port of Taicang covers 39 km shore and is 30 km away from the German Centre Taicang
for a while already. They are not newly arrived expats – they already have
their connections. This requires a different approach to client acquisition. “To
convince them to switch, we need to show we are the right service provider for
them. Being based in the German Centre helps a lot. A law firm like ours needs
to be in a first-grade office with an eco-friendly environment. It underscores
our German brand,” explains Kok. “In addition, through the German Centre network, we get to hear about the latest developments as they happen – that
helps us to understand the needs of our clients.” There are lots of Chinese law
firms in Taicang with good legal services, but, according to Kok, what they lack
is the experience of dealing with German managers. “We are not just legal
counsel, but a bridge-maker between the two cultures. We will be the first
German law firm in the city – we hope the early bird catches the worm!”
“Our new building meets the highest international
and German green building standards.”
With the Chinese central government actively encouraging Chinese-German
enterprises in cities like Taicang, the role of the German Centre is to provide
German standards of office space and service in these locations. “Our new
building meets the highest international and German green building standards.
When visitors enter the lobby, they see the difference between it and the other
offices in Taicang,” says Müller. “By focussing on environmental standards,
we are bringing a little bit more of Germany to China. But not just that, we are
also helping facilitate matchmaking between German and Chinese companies
and helping Chinese companies understand more about Germany as a future
investment market.”
26
Shop
window
Germany
In Mexico the ‘Made in Germany’ tag is
highly valued. Investors are very welcome.
Through its numerous activities and events,
the German Centre Mexico supports both
the German image and the strong German
community.
Elegant bathroom fittings by Hansgrohe, a shop for
premium quality bed linen by Laura Coeller, a tyre
boutique from Continental – it sounds like an exclusive shopping mall, but is actually the entrance
hall for the German Centre Mexico. Directly next
to the lobby area, one showroom after another
follows. It’s just like window shopping. Visitors can
marvel at German quality and high tech products at
close range – the latest packaging solutions from
Multivac, innovative compressed air solutions from
Kaeser Compressors, the wide variety of material
testing machines from Zwick Roell. If they are interested, they can take a tour through the company
history of the world-renowned installation technology manufacturer Viega. Around 14,000 visitors
come every month. Companies use the glass-walled
exhibition spaces for customer presentations and
use the demonstration models to train technicians.
“The German Centre Mexico is
a shop window for German
businesses and German products.”
“The German Centre Mexico is a shop window for
German businesses and German products,” says
Managing Director Susanna Hess-Kalcher. “The
idea is very popular. Demand among the companies
for the approximately 100 square meter showrooms
on the ground floor is high – we’ve never had any
vacancies.” That’s why on every floor there are
further showrooms, such as in the offices of the
dental technology company Sirona and the medical and security technology specialist Dräger. Even
without their own showroom, companies can have
a presence in the entrance area. The lobby provides
space for promotions, product shows and parties.
The “Made in Germany” tag has an exceptionally
good reputation in Mexico. “There is a German industrial culture here that has grown over decades,”
explains Hess-Kalcher. Automobile manufacturers
Hansgrohe
Continental
Sirona
Dräger
and machine and plant construction companies,
in particular, have a strong position in the market
thanks to their long history in the country.
Altogether over 1,200 German companies have
invested in Mexico. They employ around 120,000
people who contribute around five percent to gross
domestic product. Almost 1.3 billion US dollars are
generated annually by the country which, after Brazil, is the second largest economy in Latin America.
And the trend is upwards – according to a forecast by PricewaterhouseCoopers, Mexico’s gross
domestic product based on purchasing power
parity will quadruple by 2050, making it the sixthlargest economy in the world. The liberalisation of
the energy and oil industries is set to open up new
growth areas.
The German Centre Mexico helps German companies enter the market and tap into this potential for
growth. Regular B2B events and tenant meetings
bring the employees of the 110 companies together
to exchange experiences. The positive German image, German products, services and technologies,
as well as the cohesiveness of the German community are all actively promoted.
A good example is the public screening of the football World Cup, where 1,000 spectators celebrated
the victory of the German team with beer and sausages. An “Oktoberfest” is planned to take place
in 2016 in conjunction with the “German Year in
Mexico”. The German Centre will be present with
an exhibition stand at the prestigious trade fair
“Expo Hecho en Alemania”. There were 70,000
guests at the first one in 2010; many more are
expected for 2016. A special highlight will be the
“German Car Show 2016”. High ranking representatives from industry and politics will rendezvous at
the German Centre.
There is a pleasant feel to the whole building. Pictures of German landmarks adorn the walls. There’s
27
In September 2015, the company moved back into
offices at the German Centre Mexico. “The key
benefits for us are the image that the building conveys to visitors, with its inner courtyard flooded
with light, the functionality provided by the modern
office spaces and the Business Centre, and the fact
that we can rent more room should we need it in a
few years’ time. The German Centre offers a high
standard which we, as a high quality business, set
great store by.”
a German bakery, a fortnightly German delicatessen market, and a canteen that serves sausages
with sauerkraut and potato salad once a week. In
the foyer are exhibitions of German artists.
“With an address at the German Centre, German
companies can convincingly communicate the image ‘Made in Germany’ to the local market,” HessKalcher says with conviction. “It stands for quality,
professionalism and reliability.” These were exactly
the reasons why Guido Hesse, Director General of
the Mexican subsidiary of Beumer, decided to move
back into the German Centre. The family-run equipment manufacturer from Beckum began selling its
products in Mexico in 2008, starting with a small
office in the German Centre, which is located in
the Santa Fe business district around 15 kilometres
from the city centre. In 2012 the intralogistics specialist decided to move to a more central location in
Polanco. “From that point on we were in the middle
of the city centre, but the offices were rather outdated. That didn’t fit with our idea of quality,” says
Hesse in retrospect. In addition, Beumer needed
more space to manage its growth and the increasing number of staff.
“The key benefits for us are
the image that the building
conveys to visitors.”
Like many other companies, Beumer uses its base
in Mexico to develop other American markets. The
intra-logistics specialist intends to continue growing all its business divisions – conveying and loading, palletising and packaging, sorting and distribution. “Mexico is a springboard both to the north
and to the south for many companies,” explains
Hess-Kalcher, who, as a proven expert in international cooperation and intercultural management,
has 25 years of professional experience in various
Latin American countries. Mexico scores highly as
a place for investment because of its stable economy, low production costs based on the US dollar,
growing internal demand from the near 124 million
inhabitants, and the duty-free access to many
other markets. The country is a signatory of the
North American Free Trade Agreement, NAFTA,
and maintains numerous other free trade agreements with Latin American nations and with the
European Union.
“Investors are made to feel
very welcome in Mexico.”
“Investors are made to feel very welcome in
Mexico,” reports Hesse, based on his own experience. “The market is open and easily accessible.
German companies have a huge competitive advantage here because they have the image of high
quality and leadership in innovation, which can be
summarised in three words: Made in Germany.”
28
29
Different countries, different customs
An unusually soft handshake? Profound silence over dinner? Shaking heads although you’ve just agreed?
Which cultural practices should you be aware of when meeting foreign business partners and their local colleagues.
Singapore is a fine city! So
never drop any litter and refrain
from chewing gum, eating
Singapore snacks and smoking cigarettes
in public. Disregard of these
rules can result in hefty fines, cleaning duty
or beatings with the cane. Only a maximum of
17 cigarettes can be imported and there is a
strict no smoking policy in place on public
transport, in public buildings, restaurants, bars
as well as gatherings
of more than five
persons. Do not be
surprised if you meet
people who behave
in a way that seems
overly ambitious or
even egotistical – being
“kiasu” is a national trait.
Always keep face in China, and that of your business partner.
Raise your voice or make any kind of emotional outburst and
you will quickly lose respect. Never negotiate with the Chinese
on your own – sitting together in a group around the table is
China
not seen as weakness but as attentiveness. Just make sure
your side are all singing from the same song sheet. Avoid dates that include the
number 4 – when spoken
it sounds like the Chinese
word for “death”. You will
not find a 4th floor in many
Chinese buildings and no
hotel rooms including this
number. The lucky numbers
are 6 and 9, and in particular
the number 8, “fa” in Cantonese, meaning “imminent
wealth”. Do slurp your soup
with pleasure and feel free to lift your bowl to your mouth. No matter how hot
and spicy the dish, though, never blow your nose – your neighbours at the table
will find this most unappetising. Above all, never leave your chopsticks standing
upright in the bowl, unless you wish death upon your business partner – only
incense sticks are placed this way in memory of the deceased.
Hola! If you are invited to someone’s home and arrive
on the dot, your otherwise exemplary punctuality will be
considered most impolite. Arriving around half an hour late
is entirely appropriate. For business appointments, on the
Mexico
other hand, it is advisable to be on time, even if it means
you are left waiting for your business partner to arrive. Refrain from saying
a straight “no” or “I don’ t know”. A polite paraphrase with a garnish of
gratitude is generally better received.
Shaking your head signals agreement in
India! Should you find it difficult to wobble
your head gracefully, just say “accha” or
“thik hai”, which means “ok, good”. At the
India
table, when shaking hands or receiving
presents never use your left hand. Shoes and the soles of
your feet are also considered to be unclean. Your head is
where your soul is and therefore holy – even children should
never be touched above the neck.
Selamat! Take plenty of time for greeting people and for
business meetings. Address business partners with the
title “Bapak” for men and “Ibu” for women, together with
their first name. Never say “no” and never voice criticism, it
Indonesia
would be impolite. It’s not done to speak during meals. Your
attire should always cover your knees and, for women, your shoulders too.
Shorts are considered a sign of poverty. Indonesians will be delighted if you
have a lot of children. “Berapa banyak anak-anak” (how many children do
you have?) is a common question.
Showing how well-read you are is considered
good form in Russia – it is common to recite poems
at social gatherings. Be prepared to volunteer a
piece from your own country. Toasts often go on
Russia
for rather a long time, after which your business
partners will knock back their glasses, usually containing strong
alcohol, in one swig. Do not be surprised if someone crowds
you in during a conversation or in a pub – personal space is far
smaller than in western countries. Moving away looks like you
are distancing yourself.
The individual counts for little in Russia, so take a high ranking
group with you to negotiations and be determined to keep
your ground. Never greet someone over a threshold as that
brings bad luck. When giving flowers, make sure the bouquet
has an uneven number and no yellow blossoms. Holding the
door open for women and men alike shows respect. “Tol’ko
poslye vas!” - after you!
30
31
to be patient. Corporate governance is an evolving area – there are big changes
going on in the business culture, with the issue of compliance gaining more
management attention. It’s going in the right direction.”
International business requires
international business standards
It can be tricky for foreign companies to find their way through the
mass of laws and regulations in India, and corporate governance has
not been a strong point in the past. Yet both India’s size and its democratic institutions make it an attractive place to do business. The German Centre Delhi.Gurgaon helps them make the most of this potential.
In the state-of-the-art test kitchen at the German Centre Delhi.Gurgaon, the
chefs at Rational AG demonstrate to customers how to prepare traditional
Indian dishes using modern German technology. Headquartered in Landsberg
am Lech in southern Germany, the company manufactures professional cooking appliances for restaurants, hotels and the foodservice industry. “We are
world leaders in combi steaming technology,” says Thomas Stütz, Rational’s
executive vice president for Asia. “But when we first came to India, we were
virtually unknown. People in Indian kitchens still work in much the same way
as they have done for the last 100 years. So it was pioneering work to change
their mindset.”
Rational has just celebrated its 5th anniversary in the German Centre and has
been very successful, with substantial growth every year. “We started with a
small team in a small office and a test kitchen. Now we are much bigger, with
our own warehouse and a new training centre,” says Stütz.
“Rational is a great example of a successful market entry and expansion of a
German company in India,” says Jana Helbig, Managing Director of the German
Centre in Delhi.Gurgaon. “Their products are high-tech for the Indian market – a
country known for its ‘frugal innovation’ – and import duties push the price up,
but they have shown that high quality products can be very successful in India,
given the right strategy.”
“When you cross a state line, you sometimes feel
like you are entering a different country because
of the different laws.”
Foreign companies are attracted to India because of its market size, its well-educated, English-speaking workforce, its relatively low labour costs, and its
growing young workforce – but also because it is a democracy with a legal
system that is familiar to Westerners. Yet the experience of trying to set up
a company here can be bewildering. “There are a lot of rules and regulations,
and finding the right information is not always easy,” says Helbig. “There isn’t
a single website with everything you need, and not all the information is available online yet. Sometimes, you have to go in person to different offices to
understand what’s required. This process can take weeks.” Added to this is
the complication that each of India’s 29 states and seven union territories has
its own tax system and customs. “When you cross a state line, you sometimes
feel like you are entering a different country because of the different laws,”
says Helbig.
The Indian government is also introducing reforms to improve the complicated
legal system – harmonising the rules on taxation, customs and import duties
and moving income tax and pensions systems online – but there is some way
to go. “We can’t expect wonders overnight. It’s a huge country with 1.2 billion
people and serious problems resulting from poverty and lack of infrastructure,”
says Helbig.
Rational has set up subsidiaries all over the world but, even so, they found India
challenging. “It took a long time and a lot of additional effort,” says Stütz. “It
was very slow getting all the approvals and stamps. You have to go from one
office to next and there’s a lot of documentation involved.” The German Centre
helps deal with these problems by opening up networks. “Having connections
and knowing people who are experts is crucial. A big part of my job is identifying good service providers who are reliable network partners our tenants can
trust,” says Helbig. For Rational, this network has provided them with their
legal and auditing services.
A further obstacle to business in India is corruption. Historically, India has not
had a strong culture of corporate governance. Bribery has, in the past, been
seen as a normal way of speeding up processes and acquiring permissions.
But today, as India makes efforts to attract more foreign investors, compliance
with rules that reflect international standards of corporate behaviour is seen
as increasingly important, not just because the government is taking stronger
measures, but because companies know that, long-term in a globalised world,
success depends on having a good reputation.
“Corporate governance is an evolving area –
there are big changes going on in the business
culture, with the issue of compliance gaining more
management attention. It’s going in the right direction.”
In spite of the difficulties, Helbig maintains that the Indian system is fundamentally sound and the new Company’s Act will introduce greater transparency
and reliability. “The legal system here is smart and modern, like any industrial
country. In theory everything is in place. The difficulty is in practice. You have
Against these challenges, the modern facilities of the German Centre make life
a lot easier for newcomers. “Gurgaon is as modern as it gets. The standards
are the same as you would find in Germany. Cyber City, the district where the
German Centre is located, has its own power stations, so there are no outages.
Everything works. And as a landlord, transparency, reliability and fairness are
naturally part and parcel of all our dealings with our tenants.
To be efficient, that’s what they want,” she says.
“And as a landlord, transparency, reliability
and fairness are naturally part and parcel of
all our dealings with our tenants.“
It’s certainly provided a good
home for Rational while it worked
to establish itself in the Indian
market. “No one expected us to
be able to cook tandoori dishes,
but we have adapted our product
to the Indian market and Indian
cuisine, and we’ve been able to
show people that we have solutions that make their life easier,”
says Stütz. And he believes their
success so far is only the beginning. “There is still huge growth
potential in this market.”
32
Local presence builds
business trust
Indonesia has great potential – it is the largest economy in Southeast
Asia with a growing middle class. But there are challenges to doing
business here, not just the lack of an infrastructure. Language, culture
and customs all play a decisive role. To build strong relations with
customers and partners, it is essential to have a local presence.
The attractions for investors are clear. Indonesia has a huge population –
around 245 million inhabitants – and a large internal market. Domestic demand
makes up two-thirds of GDP, with a growing middle class keen on consumer
goods. E-commerce, tourism, and financial services are all flourishing. “This is
what attracts German companies,” says Julia Baur, Managing Director of the
German Centre in Indonesia. “Moreover, the country is rich in natural resources
and occupies a strategic location in the centre of Southeast Asia.”
“Indonesia started in farming and textiles,
then developed into heavy industries and foundries.
Now it is moving into the high tech area – this is
where TRUMPF comes in.“
Certainly for TRUMPF, a leading global high-technology company that produces
machine tools, lasers and electronics for industrial applications, the Indonesia market has proven its worth. “We first introduced the brand to the Indonesian market in 1990,” says Stephen Sidharta, General Sales Manager for
PT TRUMPF Indonesia. “Initially we had a model job shop in a joint venture
with one local company. But as Indonesia proved to be a growing market, we
decided to create a local subsidiary.” PT TRUMPF Indonesia was established in
2009 with offices in the German Centre in BSD City, Tangerang, in the southwest of Jakarta. The office provides service personnel, after-sales services
and spare part management to local customers.
33
According to Sidharta, it was the right time in the country’s development for
his company to invest: “Indonesia started in farming and textiles, then developed into heavy industries and foundries. Now it is moving into the high tech
area – this is where Trumpf comes in. We can produce the cutting machines
which have added value and technology that compete well with other Asian
countries. All eyes are looking to Indonesia.”
But there are challenges, foremost the lack in infrastructure. In a country made
up of thousands of islands, logistics can be a problem. “Indonesia still needs to
do a lot to improve airports, roads and other links. Jakarta’s Muara Angke port,
for example, has the longest customs clearance time of any port in ASEAN,”
says Baur. “The government is pushing ahead with investments, but there is a
lag. Foreign investment in infrastructure is urgently needed.”
Added to this is the country’s huge inventory of laws and regulations, many
overlapping and inconsistent. “It can take months or years to get the necessary
permissions to establish a company here,” says Baur.
The German Centre in Indonesia helps companies navigate these challenges
and get the best out of the country. “We offer not only office space but also
rapid access to networks, including the German Embassy, the German Chamber
of Commerce, the business community in Jakarta and potential clients. We are
a door-opener. We help our tenants obtain the required permits and licences
and do our best to speed up the process,” says Baur.
“It’s not enough just to fly in and do business here.
If you want a real chance of success, a local
presence is essential.”
While many companies choose Singapore, with its reliable legal structure
and easy access, for their ASEAN headquarters, there are clear benefits to
establishing a local base to explore a market like Indonesia. “It’s not enough
just to fly in and do business here. If you want a real chance of success, a
local presence is essential,” says Baur. “There are huge differences across the
region in terms of politics, religion, language and per capita income. You have
to understand the local language and culture, and adapt your product to the
local market. In Indonesia, in particular, you have to work on building trust. People
here prefer meeting face-to-face and negotiations can take time. But if you can
speak Bahasa, they will open up.”
This is the approach taken by TRUMPF. It has its Asia Pacific headquarters
in Singapore, serving as regional hub, and an Indonesian subsidiary staffed
by locals. Sidharta and his colleagues not only speak the language, they also
understand the business culture. “You need to adapt and understand the local
people,” says Sidharta. “Our Indonesian customers often focus on price, rather
than technology. So we take a lot of time to explain and prove the benefits of
our products, which, alongside the quality, include a strong service offering and
a high degree of flexibility.”
For TRUMPF, the effort has paid off. They have experienced increases in
sales revenue of 10% nearly every year. Being associated with the German
Centre has an additional important benefit. “It gives our customers a sense of
reassurance,” says Sidharta. “They can see that we are well established –
we’re obviously not going to run away – and they feel secure in building a longterm relationship with us.”
34
These developments have been closely followed by VdS Schadenverhütung
GmbH, Europe’s leading certifier for fire safety and security. “When we first
came to China in 2007, we had around 100 customers. Today our office within
German Centre Shanghai serves as Asia-Pacific Headquarters of more than
300 customers all over the region ,” says Lothar Sysk, Chief Representative of
VdS Shanghai. “With its strong high-tech production industry and neighbouring
powerhouse provinces Jiangsu and Zhejiang, Shanghai is the perfect base for
managing our business. Over the years we have grown from a service provider
to a trendsetter in China of German and European standards in our industry.
Now we are even functioning as a gateway between the markets. When
advising the Chinese government and official bodies, our office address at the
German Centre is a statement in itself and helps to get recognition. Therefore
it comes as no surprise that German Centre’s smoke detectors are certified
by us,” says Sysk, smiling.
Evolving to meet
changing demands
The German Centre idea is twenty years old. As it grows in maturity, how is the model changing in reaction to changes in the world around it, and what does the future hold? We look at the example of China, where German Centres in
Shanghai and Beijing have been the platform from which many German companies have taken their first steps in a
foreign market and have gone on to flourish.
The German Centre in Shanghai is, today, the centre of a huge community,
offering a wide range of services and facilities that include restaurants, shops,
apartments, travel agents and a kindergarten, alongside flexible, modern office
space. In the vast atrium, events showcase the best of German industry, from
BMW’s preview of its 5 Series to Semizentral, an award-winning wastewater
treatment project. The annual job fair, attended by 50 to 60 German companies, attracts thousands of students from Shanghai’s universities. And not to
be forgotten, the German Centre is host to ever popular cultural events like the
lighting of the Christmas tree and the lantern festival.
“Our USP is the image we present and the atmosphere we create,” says
Christian Sommer, CEO & Chairman of German Centre Shanghai. “Today, there
are thousands of offices available in Shanghai. What we offer is not just a
space – we provide real added value for our tenants. That’s something no other
office in Shanghai does.”
Shanghai and Beijing are China’s most prominent 1st tier cities, and the first
stepping stone for many foreign companies. “German companies still come to
Beijing for its proximity to central government and to Shanghai for its central
location and trade links,” says Sommer. “But increasingly, it is necessary to be
present in both. It’s hard to serve the whole of China from one office.”
This dynamism is being witnessed too by Jörg Höhn, Managing Director of the
German Centre Beijing. “Beijing has a lot of growth potential and a huge hinterland,” he says. “We are seeing German companies coming to us from other
regions in China. At the same time, our tenants’ companies are growing and
we’ve seen companies that have moved out come back to us because they
cannot get the same service standards elsewhere.”
All these changes have created a need for more space, which is why the
German Centre Beijing has opened a second building. “Our original building is
in an excellent location in Beijing – the so-called German area. So we chose a
building just 500 metres away for our expansion. It’s a newly built, state-ofthe-art office block with flexible space over five floors, from smaller units to
larger ones,” says Höhn. “As always, we offer the possibility for companies to
start small when they first arrive, keep their costs manageable, and then grow.”
35
Beijing, Shanghai and, indeed, China itself, have changed dramatically since
the German Centre Shanghai was founded here twenty years ago. “Back in
the 1990s, German businesses arriving in China needed help sourcing basic
supplies like stationery and were glad to be offered a ride from the airport,”
recalls Sommer. Today, the economic and legal framework in China makes it much
easier for foreign companies to establish themselves. Shanghai is now home to
thousands of German companies. “It’s unrecognisable to how it used to be,” says
Sommer. “It is a sophisticated, international city on a world-class scale.”
“You can see the profound changes in the kinds of
companies coming here. This used to be an export
driven market: German machines, made in Germany,
sold to China. Now German companies are producing
and developing suppliers in China.
With these vast changes, not only the German Centre, but also its tenants,
have evolved dramatically. “You can see the profound changes in the kinds
of companies coming here. This used to be an export driven market: German
machines, made in Germany, sold to China. Now German companies are producing and developing suppliers in China. An example is the automobile industry,” says Sommer. “We are also seeing more companies from service sectors
coming here. And the next development is well underway: Chinese companies
are wanting to go to Germany and elsewhere.”
“German companies are now all over China.
Our next task will be to address the needs of
businesses in 2 nd and 3 rd tier cities.”
“German companies are now all over China,” says Sommer. “It no longer
makes sense to try to bundle them all under one roof. Beijing and Shanghai are
international cities. Our next task will be to address the needs of businesses in
2nd and 3rd tier cities.” One such example is Taicang – originally a base for production facilities, it is increasingly attracting other types of German business.
“Our new German Centre Taicang will provide a home for the German service
provider companies that a city like this needs – the lawyers, the accountants,
the IT consultants. And it will help build up the German community as well,”
says Sommer.
By constantly modernizing the concept to meet changing needs, German
Centres continue to create added value for their tenants wherever they
are. “Whether it’s providing administrative help, making connections to the
government, or helping bridge the language gap, we are always more than just
an office space,” says Sommer.
In China, the pace of change is relentless. “You need to be very flexible to
deal with the dynamic economic environment here,” says Sysk. “Things change
extremely quickly. That’s where being a tenant in the German Centre is a
great benefit. They help us to understand the implications of changes as they
happen, so that we can adapt quickly.”
36
Welcome at the German Centres
37
A language guide
Encantada de conocerte
Schön, Sie kennenzulernen
Hěn gāoxìng rènshí nı̌
Senang bertemu denganmu
Nice to meet you
Priyatno poznakomit'sya
Tel.: +86 10 6590 69-19
[email protected]
www.germancentre.org.cn
Tel.: +52 55 9172-9210
[email protected]
www.germancentre.com.mx
German Centre Singapore
Tel.: +65 6562-8020
[email protected]
www.germancentre.com.sg
I am from Germany
Āpsē milkar bahut khūśī huī
Soy de Alemania
Ich bin aus Deutschland
Aku dari Jerman Ya iz Germanii
Wǒ láizì déguó
Buenas tardes, me llamo ...
Guten Tag, mein Name ist ...
Mai Jarmanī sē hū
Nı̌ hǎo, wǒ jiào ...
Selamat siang, nama saya ...
Hello, my name is ...
Tel.: +91 124 463-6000
[email protected]
www.gurgaon.germancentre.com
Tel.: +7 499 683-0202
[email protected]
moscow.germancentre.com
German Centre Taicang
[email protected]
www.germancentretaicang.com
Dobriy den, menya sovut ...
Namastē, mērā nām ... hai
Ja, nein, danke
Shì, bù shì, xiè xiè
Yes, no, thank you
Si, no, gracias
Ya, tidak, terima kasih
Hā, nahī, dhan'yavāda
Hasta luego!
Da, net, spasibo
Auf Wiedersehen!
Tel.: +62 21 537-2994
[email protected]
www.germancentre.co.id
German Centre Shanghai
Tel.: +86 21 2898-6888
[email protected]
www.germancentreshanghai.com
German Centre for Industry & Trade GmbH
Tel.: +49 711 127-77420
[email protected]
www.germancentre.com
Good bye! Namaskār! Zài jiàn!
Selamat tinggal!
Do svidaniya!
German
Chinese
English
Indonesian
Indian
Russian
Spanish
Publisher:
German Centre for Industry and Trade GmbH
Am Hauptbahnhof 2
70173 Stuttgart
Germany
Tel: +49 711 127-76220
[email protected]
www.germancentre.com
All data and information in this publication has been collected carefully. German Centre for Industry and
Trade GmbH cannot, however, assume liability for, or guarantee, the accuracy, completeness or topicality
of the information provided. The duplication of information and data, in particular the use of texts (in full
or in part) or pictures, requires the previous permission of German Centre for Industry and Trade GmbH.

Meet the German Centres - German Centre Singapore

Transcription

Similar documents

Get to Know Germany

With 2 Checking Account Numbers Changing

Germany on the Net Germany on the Net multilingual resources

Historical Background Briefing Conditions of

Welcome to Oxford! - Oxford German Society

learN germaN coNceive culture exPerieNce berliN

why german is 4u! - Goethe

Mary El-Beheri has been a mighty force in Sprachfest, Texas State