Company special: TuV SuD's Shanghai relocation a sign of its success

TuV SuD Greater China Management Headquarters' relocation in Shanghai marks a major milestone in the company's development.

The floor area of the new office building, located in Zhabei district, is four times its previous Shanghai location and fully complements TuV SuD China's operations, said Dirk von Wahl, president and CEO of TuV SuD China.

He said the new 13-story building not only provides a better working environment for employees but also shows what the German company has achieved in China in past decades.

TuV SuD is a global testing, certification and inspection solution provider based in Germany.

In recent years, the company has achieved double-digit annual sales and profit growth in China. It expects to achieve similar results next year, said von Wahl at a ceremony for the company's headquarters relocation on Sept 16.

"China is the second-largest market for TuV SuD. It is our way to show Germany that we are not always developing, we are developed," he said.

From its beginnings as a small business in Hong Kong in 1991, TuV SuD China has grown exponentially.

It has established four regional centers that serve clients in the northern, southern and central parts of China, as well as Taiwan. It has also opened branches in major cities such as Xiamen, Fujian province, and Guangzhou, Guangdong province.

It has a broad product portfolio, from consumer and industrial products that cover the automotive, equipment manufacturing, aviation, medical care and power generation sectors.

In the battery and wind turbine blade testing fields, TuV SuD China's service is as strong as it is in Germany, von Wahl said.

"We are not there looking at something and sending them back to Germany for verification. We are the one verifying," he said.

With a strong presence in China for more than two decades, TuV SuD has been serving as a link between producers in China and customers in the rest of the world. It supports Chinese companies' global expansion plans by helping them enhance their level of quality and supplying the latest industry information.

"On the one hand, our task is to check the safety and quality level of the products so they meet the requirements of other countries. On the other hand, we are helping Chinese producers," von Wahl said.

Attracted by China's growing demand for consumer goods and favorable government policies, many of the world's leading testing and certification companies have offices in China, making competition within the industry fierce.

"The strategy to win those customers over is on quality and safety. There is no deviation on any regulation because once we do so, our customers might receive problems," he said.

TuV SuD is known for implementing strict standards. In 2015, TuV SuD entered a new phase of development marked by a series of in-depth collaborations with Schneider, JA Solar Holdings, Philips, Dongfang Electric, COFCO Corp and many other major enterprises, von Wahl said.

"Customers said our procedures are slow and our staff wants to know too many details. .. But after they get the certificates, they can go anywhere in the world and sell their products," von Wahl said.

Future development

Although China has reported slower economic growth and declining export volume, von Wahl is still optimistic about the Chinese market.

"I see never-ending opportunities right now with the new normal," von Wahl said. "The demographics of China make it clear that the country will not continue with its low growth rate. I know there are many discussions on whether the government should stimulate consumers more. However, if you look at the long term, strategically, everything is pointing in the right direction."

Over the past few decades, exports have played an important role in supporting the growth of testing and certification companies. But in recent years, China's export volume has declined amid lower overseas demand.

"There is a shift in exports, but it is not necessarily bad for us," said von Wahl.

He said State-owned companies trading in overseas markets will benefit testing service providers.

"They are clearly a force in the trading world and we will be the service provider," von Wahl said.

The Chinese government is gradually opening its certification market to foreign players, which will be another big opportunity for TuV SuD, said von Wahl.

Previously, foreign companies were not allowed to issue certificates for locally made products that were not produced for export.

The central government hopes opening the market could integrate resources in the testing and certification sector and allow foreign companies to improve product quality and safety in China.

TuV SuD will continue to improve its capabilities and investments in China to support the nation's development. It has consolidated its testing resources in Shanghai and established a lab in the Minhang district of Shanghai.

The center is one of TuV SuD's largest and most comprehensive inspection and testing labs.

"We once had four or five different lab locations in Shanghai. The customers want us to provide a one-stop service," said von Wahl. "So we combined our labs."

tangzhihao@chinadaily.com.cn

(China Daily 09/29/2015 page13)