TUV SUD: Global quality partner

German technical service provider launches sustainable solutions to meet local needs

Leading German technical service and certification company TUV SUD is an important international bridge to position new Chinese products, services and systems for global acceptance, said Manfred Bayerlein, chief operations officer and member of the board of management, TUV SUD AG.

Based in Munich, the company offers testing, certification, inspection, training and knowledge services worldwide.

It brought the spirit of meticulousness and precision to China since it first began operations in the country nearly 20 years ago.

"To date, TUV SUD has partnered with more than 10,000 local companies," Bayerlein said, noting that 10.5 percent of the company's revenue last year came from Asia.

The Chinese market has such large potential not only because of its massive size, but also due to heightened awareness about the importance of product quality and safety among Chinese consumers.

Over the past two decades, TUV SUD has offered technical support for a range of projects, such as its rail expertise for subway in Hong Kong and Guangzhou, high-speed railway projects in Taiwan as well as Maglev in Shanghai.

The company is supporting the ongoing Shanghai World Expo by offering services for the German Pavilion with design review as well as acceptance tests for mechanical, electrical and control system.

It also took part in other Expo-related projects such as a test of fire protection in the Shanghai Yangzi tunnel.

"The World Expo brought us many business opportunities like this," said Bayerlein.

He noted the company's objectives are in line with the Shanghai World Expo's theme of "better city, better life".

"It is the task of TUV SUD to ensure the quality of products, management systems, environmental protection and energy conservation to promote sustainable development," he said.

Market foothold

Headquartered in Shanghai, the company's China operation has full offices in Beijing, Guangzhou, Hong Kong and Taipei and 30 satellite operations throughout the region that together employ around 1,200 experts and trained staff.

Globally, the 144-year-old company has more than 14,600 employees in 600 locations throughout Europe, America and Asia.

Appointed Chief Operations Officer in January 2008, Bayerlein was at the helm of the company as the financial crisis had a deep impact worldwide:

China was inevitably affected, as the country has further integrated into the global economy and its economic development depends heavily on foreign trade and exports, he said.

"A large number of manufacturers turned their attention from overseas to the local market, so we have seen a temporary decline for our export services like CE and GS certification."

Bayerlein said the management team in China visited a large number of customers to understand their challenges and how TUV SUD can support them.

The company also organized customer exchange forums to help clients improve management systems to reduce cost and improve efficiency.

The result was satisfying for Bayerlein, as TUV SUD received positive feedback from many customers that took the crisis as an opportunity to "practice internal strength" and adjust their structure to better face the changing situation.

"This crisis has sharpened our customers' sensitivity to the fact that product and service quality is an ever increasingly important aspect for market competitiveness," he said.

"On one hand, we help customers to win higher international recognition through our testing, expert opinions, certification services and on the other hand we are also working more closely with our customers, from the design stage to market launch and recycling to improve the product."

This approach proved itself as despite global economic turmoil TUV SUD revenues grew from 1.16 billion euros in 2006 to 1.43 billion euros in 2009.

Growth was achieved in two ways, said Bayerlein.

"The first was through targeted acquisitions in Germany, Europe, North America and Asia-Pacific to further strengthen our leading international position," he said.

In October, 2009 the company acquired GNEC, a South Korean leader in testing and inspection services for nuclear power stations. Just last month, it acquired Global Risk Consultants Corp in the US.

"Secondly, we have identified three major innovation projects - e-mobility, energy efficiency and renewable energies - that are of growing importance worldwide," he said.

"There is increasing demand for electric and hybrid cars in China and the world, so the focus on developing services for e-mobility will target this trend," said Bayerlein.

He also noted that China's government is placing increasing importance on renewable energy industries, while the nation is a major supplier to the world market.

He believes that China's heavy investment in infrastructure and projects to reduce emissions and energy use will bring the company new opportunities, in addition to its traditional services in product testing and management system certification.

TUV SUD China started a design assessment last year for a 1.5MW wind turbine made by Windey, a domestic manufacturer in Zhejiang province.

After the 10-month assessment, TUV SUD will soon issue certification to Windey, making it the first wind turbine with intellectual property developed in China to meet international standards.

The company is also working with its global partners to support manufacturers, owners and operators to develop full-scale wind farms and in the testing and certification of photovoltaic modules.

"With in-depth expertise and extensive experience in energy production, we can contribute significantly to improve the safety, reliability and cost efficiency of innovative technologies," Bayerlein said.

"Our expertise and experience are also in demand for fascinating, groundbreaking pilot projects," he added.

One example is in Spain, where the company provided support in planning, approval, construction and final commissioning of a solar thermal demonstration power station with Fresnel collector technology.

TUV SUD also has a tremendous amount of knowledge of energy provision, transmission and distribution. In the energy generation area, our service support risk management, availability of industrial plant and reduction of maintenance costs of fossil power plant and nuclear power plant. We provide process consultancy in the energy transportation and distribution area which secures the stability and capacity of networks.

A TUV SUD engineer at a power grid.

(China Daily 05/19/2010 page18)