Visist to China too see check production possibilities

Recently a visit was made to the Republic of China to check the possibilities for production  of parts in China. The visit was a bit disappointing and the following conclussions could be made;

1) Low Volume and high quality is not being considered as attractive for Chinese suppliers

2) If Low volume and high quality the pricing is not that different then our pricing

3) Efficiency of most suppliers in China is a factor 10 with our own efficiency (10 x staff members-equal nett sales)

4) China is most interesting for parts which are needed in domestic market only, and this market is rapidly expanding

We did visit 8 potential suppliers and with one of them we finnaly made an agreement to further investigate cooperation.

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