Content area
Full Text
Founded in 1925, Festo AG & Co. is one of the largest manufacturers of pneumatic components and systems for automation technology in the world. As an independent, family-owned company, Festo AG & Co. has its headquarters in Esslingen, Germany, and over 50 subsidiaries internationally. In 1997, Festo AG & Co. received the International Best Factory Award from the Export Akademie Baden-Wuerttemberg for its excellence in the areas of order fulfillment, strategic product management, process management, and employee motivation.
Festo (China) Ltd. was established in December 1993, as a foreign wholly owned subsidiary. At its infancy, Festo (China) Ltd. had seven employees and a tiny office in Shanghai. The company has undertaken a rapid development over the past six years. By October 2000, Festo (China) Ltd. had developed its main office in Puodong, Shanghai, and branch offices in 14 strategic locations in China. With 150 local employees, Festo (China) Ltd. has established an effective network across the country to provide sales and technical service. Its turnover increased from 4.5 million RMB (Chinese currency) in 1994 to over 100 million RMB (approximately US$13 million) in 2000. Up to 1999, the sales of Festo (China) Ltd. increased more than 40% every year. Dr. Qiu Hualai is the managing director of Festo (China) Ltd. Dr. Qiu Hualai is a German citizen and grew up in China. He was a worker during the Cultural Revolution, and received a Bachelor of Science degree from Huazhong University of Science and Technology in China. After working at Huazhong University of Science and Technology as an assistant professor for two years, he went to Germany andearned a Doktor-Ingenieur (Dr.-Ing) from the Technical University of Munich in 1989. Dr. Qiu's career with Festo began in 1989 when he joined the company as coordinator for the China Market. He became the managing director of Festo (China) Ltd. in 1993. In 2000, the Shanghai Municipal Government honored Dr. Qiu Hualai with the "Magnolia Gold Award" to praise his outstanding contribution to the economic construction and social development of Shanghai. He is an advisory professor at the Tongji University, Shanghai. In the following interview, Dr. Qiu Hualai conveys his views on how to facilitate the success of foreign wholly owned enterprises in China.
Jia Lin Xie (JLX): Could...