Success in China
Our aim is to help companies set up subsidiaries and production operations in China. However, as they grow they gradually need their own organization and ultimately their own facilities outside the incubator. We have already shown four companies that our concept of minimizing risks by setting up a company at Startup Factory with shared resources can be successful in practice.
Our Chinese subsidiary Kunshan Veritas Automotive Systems Co., Ltd. was established in 2011. Although Veritas is not part of Startup Factory’s typical target group (SMEs), we utilized the support of Startup Factory to set up our subsidiary in China. The aim was to minimize costs in the initial phase. After all, we needed to build up all central functions before we could generate any significant sales. That’s where Startup Factory comes in: It offers these functions as services, including a workshop with agency staff, so we did not have to rent or build our own production premises. What’s more, the service was tailor-made: The scope and timing were aligned to our needs with the utmost flexibility. After a year, Veritas China had grown beyond the incubator stage and moved into its own production facilities with its own team and many new products. Today, 6 years on, Kunshan Veritas Automotive Systems Co., Ltd. Is an established automotive supplier in China and is growing very fast. That would not have been possible in this form without Startup Factory. There’s no faster, better, more flexible or cheaper way to set up a company in China.
We were happy to write this testimonial for Startup Factory and will be retaining our amicable links with it in the future.
When we first considered setting up in China in 2009, we did not have the resources to set up a separate organization of the right size in a short time. Nor did we have sufficient knowledge of administrative and legal issues in China, from establishing a company to running the day-to-day business.
Startup Factory was a solid partner that offered us all the necessary technical and business support. A setup (assembly shop and offices) and a solid network of suppliers was established very quickly, providing the basis for our business in China. In the localization of a range of material handling systems we benefited from Startup Factory’s knowledge and extensive network. We completed our first order in China in 2010 and made a profit in the first year. We were able to meet the high quality and delivery requirements of our mainly German OEMs in the automotive and airport business right from the start.
We had a very good feeling from day one and can look back on many years of cooperation based on enormous trust. That may be one reason why we did not press ahead particularly quickly with an “exit” and setting up entirely on our own. One big advantage is that until recently the key positions were filled by Startup Factory personnel so we did not need resources from headquarters for our day-to-day business.
Agreement on important issues was always uncomplicated and my personal presence in China was reduced to a few visits a year. It really can be said that the sustainable success of Sturm Machinery in Kunshan would not have been possible without the colleagues from Startup Factory. I would particularly like to thank the two Bernds for their tremendous support over many years.
I wish you continued success!
Sturm Group was founded in 1993 and is an owner-operated industrial enterprise with around 1,000 employees worldwide. Its machinery and equipment includes surface finishing systems, vision technologies, cleaning, material handling and automation technology.
Thomas Gilch, Managing Director of Sturm Airport & Parcel GmbH
ARKU offers the world’s biggest choice of high-performance and precision leveling machinery for parts and coils. Deburring machines have recently been added to the portfolio.
When it became clear that we wanted to extend our service for our customers in China, we started to look for suitable infrastructure. That was more difficult than anticipated. It was not easy for companies of our size to find suitable premises. Moreover, we wanted to focus our energy entirely on our customers, without worrying about administration, bureaucracy and facility management. Startup Factory, which had just be established at the time, offered us exactly that, including the necessary premises. Today, our customers seek our advice on our machines in Kunshan. In addition, many customers use our leveling and deburring service on our machinery for their sheet metal parts.
Another big advantage in our view is that we are able to network with the other companies in Kunshan.. Bernd Reitmeier and his Startup Factory have struck exactly the right chord for the SME sector.