TEL AVIV, JULY 18 - PTL Group, headed by Zvi Shalgo, launched a new Israeli initiative in China: an industrial Incubator in Changzhou. The incubator is meant to allow Israeli and foreign companies to open manufacturing operations, and simultaneously reduce their risks of investment and market entry into China which are renowned for being complex.

The project, named China Industrial Incubator Initiative or CI³, is a partnership between two Israeli-owned companies - PTL Group and Elan Industries. Both operate in the fields of operational management and assist in developing companies and industrial enterprises in China. The plant will soon be launched by the LycoRed- Makhteshim Agan partnership.

The CI³ industrial incubator has been designed for medium-sized companies with international activities, which seek to penetrate the Chinese market. These companies have realised the urgent need for opening production sites in the largest market in the world, in terms of global growth rate.

Zvi Shalgo, CEO of PTL Group and Chairman of the Israeli Chamber of Commerce in Shanghai remarked, "Once, you could make do with marketing and sales activities in China. Today however, the trend has reversed due to changes in the Chinese economy. Now companies exporting to China encounter increasing competition from anonymous Chinese companies, which are cost effective in the global market. The Chinese government encourages high quality domestic production at a very competitive price."

Foreign companies now require local manufacturing to maintain their competitive edge, but many Israeli companies shy away from investment in manufacturing in China because of uncertainty regarding the success of sales. The new venture paves the way for rapid production and a reduced time-to-market. This means an increase in production is simpler where and when sales justify it. Investors can thereby reduce the risks of a failing investment.

He added, "Entry into the Chinese market is not simple and easy by nature. The Incubator is designed to provide conditions that will allow companies to develop industrial activities alongside logistics until their progress in the market is such that they can go out and set up a plant independently."

The Incubator complex consists of 13,000 square meters occupied by Israeli and international companies seeking to start activities in China. It is located in Changzhou, located 45 minutes away from Shanghai. Changzhou is considered one of the most attractive cities for foreign companies, in large part due to the government, which encourages foreign investment and is characterized by an open, innovative approach. The site was established with the support of the local administration of Changzhou, which has sponsored the project and sees it as a unique model in promoting foreign companies.