By Jiang Jingjing (China Daily)
Updated: 2007-09-22 09:57

Voith Paper, a leading papermaking company, will move its regional headquarters from Shanghai to Kunshan in Jiangsu Province next month, where it will construct a new paper center within a year.

The Germany-based firm said it is investing 60 million euros in the "Voith Paper City", where it will integrate all its three divisions - paper machines, paper fabrics and paper rolls.

"Being close to clients is an important strategy to tap into the huge market potential," said Liu Mingming, president and CEO of Voith Paper China. She said the move will largely reduce delivery time and will enhance the level of service.

She stressed that localization does not mean prices will drop, and insisted the firm will maintain its high-level "German quality".

According to Liu, Voith's products and solutions cost about 30 percent more than those of many local rivals, but she pointed out its products are not only durable and stable, but also produce much better quality paper and board.

So in the long run, using Voith products reduces costs and generates more profit, she said, citing the example of China's largest newspaper paper production firm, Huatai Group, which was only a medium-level papermaking factory until it teamed up with Voith in 1998.

Company figures indicate China is the world's second-largest paper and board producing and consuming nation, after the United States.

Last year, its production and consumption volume stood at 65 million tons and 66 million tons.

The country has over 3,600 papermaking factories, 20 percent of which are high-end and 60 percent are in the middle range.

In the current fiscal year ending September 30, Voith Paper's total orders in China have tripled year-on-year.

The company is displaying its technology at the ongoing 15th International Exhibition and Conference on Paper and Forest Industries in Beijing.