Raw material secured. The future too.
Mastering challenges in China.
If the raw material no longer comes to us, we have to go to the raw material: this is the thinking at the raw material company as the procurement of vital materials in China becomes increasingly difficult. And they took action: By founding a Chinese subsidiary including production. From the very beginning, a leading role was played locally: someone who knew the general conditions in China, spoke the language and had experience in successfully setting up a company.
The long-established company has been buying various metals on the Chinese market for many years and importing them to Germany. Until the Chinese government changes the conditions with new tax regulations.
Exporting the raw materials to Europe becomes uneconomical almost overnight. And the company's existence is threatened.
The obvious - and at the same time seemingly distant - solution:
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Setting up our own plant in China, processing the raw materials locally and exporting the semi-finished products. However, there is a lack of management capabilities and experience for such a complex task.
At first. The Management Board decided to bring Niels Schumann on board.
In addition to his Chinese language skills, he has everything it takes to successfully set up a company in China.
Niels Schumann is familiar with the broad regulatory framework, has already gained local management experience and can quickly ensure that an office in China is able to operate.
Knowledgeable, experienced, strong in realisation
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As managing director, Niels Schumann first establishes a representative office in China and then a production company. He recruits staff, draws up contracts and takes care of the IT infrastructure.
The next important steps: searching a location, sourcing the entire supply chain and commissioning the construction work. Always in close contact with the local government and the company headquarters in Germany.
Reliable partners are selected - naturally under due diligence aspects. The complex Chinese legislation is analysed and applied. This is particularly important when it comes to financing requirements and the large amount of documentation, evidence and records required.
Nine months later
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After just nine months, the time has come: production in China begins. Raw materials are purchased and processed locally, ensuring availability for international production sites. The company's ability to operate worldwide is secured. Niels Schumann has achieved his client's goal.
Responsibilities as managing director for the foundation, development and management of the production company in China:
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Location search
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Government approvals for production licences, taxes and customs duties
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Implementation of governance structures
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Recruitment and organisational development
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Local procurement of machineries and raw materials
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Securing the financing
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Close coordination with the head office and subsidiaries
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Management of the interdisciplinary, intercultural project team, spread across several time zones