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When trying to sell products in China, many companies find that import regulations and transportation barriers are not only hard to overcome but also elevate the cost of their products. One of the best solutions is transferring part of the product assembly and/or manufacturing process into China – without losing control over IP and important work processes.
A trusted partner can guide you through process implementation, and help you create a safe and controlled manufacturing environment.
Here are three options that are designed to help:
Contract Manufacturing
You do not have to establish your own local production plant in order to start manufacturing in China. You can start out with a low-risk, light-commitment model called Contract Manufacturing. In this model, PTL Group takes care of some or all manufacturing aspects for you – from component procurement and product assembly in China to QC and shipping. We treat your product design, intellectual property and trade secrets in full confidentiality.
The Contract Manufacturing model includes an initial assessment stage, in which a team of experts helps you assess the cost of purchasing local components for your products and adjusts the final design to local market needs. We can also assess the cost of manufacturing in China for full or partial assembly options.
You can rely on our Contract Manufacturing for as long as you need, until you decide the time has come to set up your own manufacturing facilities.
The Industrial Incubator
Want to move forward and set up manufacturing in China? You don’t have to go “all-in” at first. If you want to start on a smaller scale, PTL Group’s Industrial Incubator provides a quick and cost-effective solution to initiate local manufacturing or assembly in China, in order to support sales in China. The incubator business model provides customized production and assembly facilities that allow foreign companies to set up a manufacturing site or assembly factory in China in a controlled environment and with on-site managerial support services.
Our incubator has proven to be very successful in building assembly lines for medical appliances, complex automotive components, energy-saving construction products, innovative food products, LED displays, electronic and electromechanical devices and more.
The Industrial Incubator – Key Applications:
- Manufacturing entity registration, management, hosting & control
- Establishment and operation of production & assembly lines
- Obtaining manufacturing licenses & all required certifications
- Key staff recruitment, training & supervision
- QC processes set-up
- Professional back-office support (HR & Finance)
- Supply chain support
- Engineering and product localization support
Factory Set-Up
Want to take another step forward, and initiate a comprehensive and robust manufacturing operation? If you are ready for setting up a factory in China, our factory set-up services can really make a difference. Your chances of success are significantly affected by on-site project management and local government relations.
PTL Group’s experienced local management team handles projects from the early fact-finding and government negotiation stages to construction supervision, equipment purchasing & assembly, employee recruitment, on-the-job training and supervision of key positions during and after operation commissioning.
Our factory set-up services include:
- Site selection
- Incentive package negotiation with the local government
- Government relations
- Procurement management
- Localization of blueprints, plans, designs, etc.
- Construction supervision
- Equipment installation management
- Financial management
- Talent search and staffing
- HR management
- Local entity operational set-up and mentoring
Three considerations for manufacturing in China
Considering setting up manufacturing in China? Looking to establish a local China assembly service? You might want to think about establishing your local manufacturing facilities in one of China’s industrial clusters. Industrial clusters are specific geographic areas concentrating a collection of companies from the same sector. While these clusters aren’t a new characteristic of China’s manufacturing ecosystem, China’s 14th Five-Year Plan (2021-25) emphasizes the cultivation of advanced industrial clusters. Over a dozen such clusters are spread across China, catering to automotive, aerospace, maritime engineering, advanced industrial mechanization, medical equipment, etc. The companies listed in the cluster benefit from knowledge sharing, networking, shared R&D facilities, local resources, and more.
Advanced industrial capabilities are also shaping assembly in China, with the massive penetration of robotics into the production line. With the government’s ambition to push technological capabilities forward and enhance automation processes in manufacturing, it is not surprising that China’s spending on robots keeps rising every year. Products are becoming more complicated, and local customers are becoming more sophisticated regarding the product quality they expect, which all help to push this trend even further. As with many trends in China that generally move very fast, you should expect assembly in China to become more sophisticated, too.
China’s efforts to reduce air and water pollution in China is another important consideration to make, especially as CO2 emission rates growing consistently every year. So, before engaging in setting up a factory in China, take into account that China is taking measures to fight pollution and global warming, and ultimately becoming carbon neutral by 2060. That is to say, by 2030, China intends to re-bring caps on greenhouse gas emissions into use.
Protect your manufacturing in China
Some foreign brands are hesitant to move their manufacturing into China due to intellectual property theft concerns. While copycats in China are often unavoidable, China is strengthening its IP protection framework. One means in which this is achieved is through four dedicated IP courts in China. The first IP court was founded in Beijing back in 2014, and since then, similar courts have been established in Shanghai and Guangzhou, and the last one in Hainan Island in late 2020. Another essential first step to take is to register your trademark, even before you intend to start manufacturing or setting up an assembly line in China.
If you are looking for a manufacturing solution in China – contact us.