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Posted by Zvi Shalgo
Zvi Shalgo
Zvi Shalgo is the CEO and owner of PTL Group. He is also a Chairman of the Israeli Chamber of Commerce in Shan...
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on Monday, 23 April 2012
in Business in China

While China is on an accelerated path to become a consumer oriented market international companies face ever growing managerial challenges trying to keep up. Over two decades of attracting massive foreign investment and the creation of fast technology transfer mechanisms made China the world’s main manufacturing base. 2011 and the new 12th five year plan shifted the focus of the Chinese policy makers to the strengthening of China’s dynamic new homegrown companies both home and abroad. Domestic Private Enterprises (DPE) as they are called here contributed over 60% of the Chinese GDP in 2010. This is in striking contrast to 38% they contributed back in 2005. Adding to this the fact that the Chinese GDP is expected to quadruple itself (2007-2025) helps to draw a general perspective of the business threats and challenges facing Western companies in China as well as in home markets in the next few years.

The financial crisis since 2008 from one side, and the fast growing Chinese consumer market as well as the abundant wealth available for investment in China today, amplify even more the growing need to penetrate and operate in Chinese markets.

Turnaround & Transformation Triggers

China is well known for being a challenging management environment for foreign companies. There are many cultural and structural market reasons that create those unique difficulties. As the new year of the dragon begins it will be interesting to focus on two recent trends affecting manufacturing small and medium sized enterprises (SME). These are both good reasons for many European based companies to reconsider their approach towards opening a new operation in China; globalisation of supply chains and the increased threat of competition by Chinese DPE in China and within a few short years in Europe’s own backyard.

Seminar: New Models for Setting Up & Managing Operations in China

Posted by Elena Luk'yanenko
Elena Luk'yanenko
Elena has more than five years of experience in international marketing providing services for the foreign com...
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on Tuesday, 14 February 2012
in Business in China

Three factors – the beginning of a new year; the globalization of industry and emerging trends in China - led the Manufacturers’ Association of Israel (MAI) to run a seminar themed New Models for Setting Up and Managing Operations in China.  Approximately 85 senior managers from various industries attended.  The event was held on the 16th floor of Tel Aviv’s world famous Industry House, which offers breathtaking views of the Mediterranean.

Israeli experts and business managers with a strong knowledge of China's commercial connotations, shared their experience of successfully managing industrial projects and business activities there.  Conference participants also had the opportunity to examine established Israeli companies in China and interact with Israeli business professionals who have a firm history of operating a business there.

The seminar was opened by Amir Hayek, CEO of MAI; and Jackie Eldan, Consul General of Israel in Shanghai. Both men focused on the tremendous growth and potential of the Chinese market.  They also emphasized the importance of engaging China as a trade partner.

Zvi Shalgo, CEO of PTL Group and Chairman of the Israeli Chamber of Commerce in Shanghai, gave an address titled “Strategies for Sustaining Competitive Advantage in the Chinese Market”, during which he analyzed multiple facets of industrial management in China.

Mr. Shalgo reviewed current trends in Chinese markets, most notably the rise of private companies.  In his talk, he also illustrated how the gap between Chinese and Western industry, locally and internationally, is narrowing.   He referred to different models of manufacturing solutions in China and explained one of this year’s hottest emerging trends for Chinese business: the industrial incubation model.

Zvi Shalgo speaks on setting up production in China at seminar for Dutch manufacturers

Posted by Hulya Kaya
Hulya Kaya
Hulya Kaya has not set their biography yet
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on Thursday, 27 October 2011
in Business in China

OCTOBER 25, Zoetermeer, Netherlands – PTL Group held a seminar in co-operation with FME and EVD. The aim of this seminar was to inform Dutch companies about setting up production facilities in China. The event was attended by approximately 60 Dutch business owners and senior executives. Key note speakers consisted of  Jan Hak, president of GMV-FME, Maarten Roos, R&P China lawyers and Zvi Shalgo, CEO of PTL Group. Facilitator Harry Starren, CEO of De Baak, was in attendance as the moderator of the seminar.

To further support the seminar, a report was published on the specific topic of "Equipment Manufacturing and Machinery in China". The report focuses on the opportunities for equipment manufacturing in China and the importance of the Chinese market for the Dutch manufacturing and technological industries. The report provides tips and guidelines for setting up production in China, ranging from business structure and employment to the sensitive issues which companies must consider when operating in China.

After Harry Starren gave a brief introduction, Marije Hulshof, Director of NL EVD International, gave an update about the opportunities for Dutch SMEs in Chinese markets. PTL Group's CEO, Zvi Shalgo, discussed the history of doing business in China, emphasising that earlier foreign companies used only to source from China. These days, they don't just source or manufacture in China but also sell in the local market. Zvi Shalgo also presented current trends, such as critical timing issues and incubation support models, as well as opportunities to benefit from Chinese government funds. He suggested that Dutch SMEs should consider incubation as their first step when setting up in China, and discussed the stages of establishing a factory in China. He also presented incubation concepts and critical considerations for choosing one. Maarten Roos followed by talking about intellectual property and concerns of foreign companies.

Following the presentations, there was a panel discussion in which key note speakers, answered numerous questions from the audience. The subjects discussed ranged from HR to finance, and other issues related to setting up production facilities in China. Once the panel discussions finished, there was the opportunity for companies to engage in networking, which provided a platform for all attendees to share and discuss their ideas about business in China.

Posted by Elena Luk'yanenko
Elena Luk'yanenko
Elena has more than five years of experience in international marketing providing services for the foreign com...
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on Wednesday, 14 July 2010
in Business in China

The task of building a factory becomes more complex in China. It is imperative to have the right skills, knowledge, experience regarding each stage in the process of setting up a new entity in order to obtain the best possible site and agreement. Undertaking such a task in China requires an in-depth understanding of cultural differences, local regulations, negotiation processes and management strategies in addition to experience and connections in the local markets. The key to success of any industrial construction project lies in proper financial management, which should not be neglected.

This article covers the following stages of industrial project management:

  1. Picking the right site for your business
  2. Negotiations
  3. Construction
  4. Management