China's exports has increased almost five fold over the past ten years. This has boosted the manufacturing industry. And some Chinese companies have started expanding their factories abroad.
Zhou Liangzhang has more than 20 years experience in producing electricity meter. His factory Hexing is the biggest electricity meter exporter in China. 7 years ago, he set up his first oversea factory in Indonesia.
Zhou Liangzhang, President of Hexing Electrical company, said, "Our company in Indonesia, Brazil, Tunisia, and Pakistan, they are all managed by local people. We only send financial manager there."
Last year his company's revenue was 215 million US Dollar, of which more than half was from oversea factories. Zhou says he is not only making money by selling meters, but also providing services and solutions, which is even more profitable.
Zhou said, "We try to provide solution for developing countries, like revenue assurance system, which can improve the utility revenue. With this kind of business model, we can keep our customer's loyalty."
Zhou's oversea factories can better meet customer's needs, and probably can get even cheaper labours. But he has one challenge that he can't buy everything locally. Over 40% of spare parts have to be shipped from China.
Zhou said, "If you ship the goods from China to Brazil or Tunisia, it will take 3 months. And then you need another one month for local manufacture. It will not meet the customers' demand, so you need to plan everything very precisely."
Losing the advantage of cheap labour cost has plunged many Chinese export-oriented manufactures in difficult situation. But manufactures still stay firm as economy's pillar industry.
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