Hartmut Rauen is managing director of the Power Transmission and Fluid Power Association with the German Engineering Federation (VDMA). He talks about industrial development and the International Fair of Power Transmission and Control, opening today in Shanghai.
Q: What contributions has the Power Transmission and Fluid Power Association made over the past decade?
A: Our power transmission and fluid power divisions are supporters of VDMA's motion, drive & automation sector at the German industrial exhibition Hannover Messe and its satellite fairs in China, India, Russia, and Turkey.
The leading manufacturers of the motion, drive & automation community have recognized the importance of the Chinese market since the inception of the Power Transmission and Control fair (PTC ASIA) in 1991. VDMA has organized the fair's German pavilion for many years with financial support from the Federal Ministry of Economics and Technology. We will once again present the pavilion at PTC ASIA 2010.
Since 2008, we have organized management meetings in China held prior to PTC ASIA and covering a variety of industry topics.
The VDMA liaison office in Beijing supports the activities of German machine and equipment builders.
Q: Can you give us a brief introduction to your industry?
A: The power transmission and fluid power technology industry is a key sector for diverse applications in stationary and mobile mechanical engineering.
The industry is the supplier of the core elements of machinery that provide a competitive edge, from energy efficiency to electrified drive trains for mobile applications.
For this reason, customers readily decide on German products, which accounted for 32 percent of global market share in 2009.
Q: What are some new trends taking place within the power transmission and fluid power industry?
A: When considering a product's total cost of ownership, energy costs are rapidly coming to the forefront.
We must all make a lasting contribution, and German high-technology delivers long-lasting and energy-efficient products at fair prices.
Q: What opportunities do you see for related industry cooperation between German and Chinese companies?
A: The Chinese market impresses with its size and growth. The chance to achieve high economies of scale and gain a competitive advantage is a driving factor for cooperation.
Countering this are the continuing problems of product piracy and intellectual property protection. It should be interesting for Chinese companies to cooperate with the market leaders, many of which are German firms.
Q: Do you have any advice for Chinese companies investing overseas?
A: The hurdle lies with distribution and access to customers. Chinese companies must build appropriate customer relationship channels, similar to those of other importers. This can be most quickly achieved with employees in the destination country.
Companies must be attractive employers on a global scale. Successful international companies win long-term profitability only when they also achieve worldwide employee satisfaction. German companies put great emphasis on corporate social responsibility.
(China Daily)
