August 04, 2017

German automation firm to locate regional centers in FTZ

Festo China, an industrial control and automation company with its headquarters in Germany, has decided to put its Asia-Pacific logistics center and customized production center in Shanghai Pilot Free Trade Zone.

The German company adjusted its development strategy to cater to the fast growing Asian market, Chinese market in particular. It is changing from a manufacturer into a R&D and logistics service provider.

“We started drawing the transformation plan two years ago. Now we have decided to move our Asia-Pacific Logistics Center to Pudong because of its vibrant market and excellent business environment as a result of the FTZ reforms and innovative policies,” said Wang Su, supervisor of Festo China Logistics Service Center.

He said the new policy adopted by Pudong Customs last November allowed Festo to store bonded and non-bonded goods in one warehouse and distribute them to clients in the Asia-Pacific region. The company’s import and export value is expected to exceed 100 million euro (US$84 million).

Customs officers said their new policy can save FTZ companies a lot of cost and increase their competitiveness by cutting clearance procedures, tariffs, and other fees.

As the first foreign enterprise in Jinqiao Development Zone, Festo China obtained its first order this month, worth 2.45 million yuan (US$ 364,580).