In an endorsement for China, Germany-based Wilh. Werhahn KG held its board meeting in Shanghai over the weekend, the first time it has left its home territory for such a meeting.
The German conglomerate which deals in a wide range of industries, said China was likely to become its next major manufacturing base to supply its global customers.
"We don't see China as a market with cheap labor," said Nobert Wiemers, chairman of Werhahn KG. "We will bring more technologies here."
In a move more substantial than the board meeting that ended on Saturday, the company also set up its third joint venture in the city last week.
D.A. Stuart Holding GmbH, a wholly-owned subsidiary of Werhahn which produces specialty chemicals, Shanghai Razor Blade Co Ltd and Shanghai Pujiang Industry Zone Invest Development Co Ltd, established a venture to manufacture and distribute industrial lubricants in China.
D.A. Stuart Company (Shanghai) Ltd, located in the Pujiang Industry Zone in Pudong, will also conduct research for what D.A. Stuart said will benefit its Asian operations. The Pujiang zone is a state-level development park focused on technology and manufacturing industries.
The total investment of D.A. Stuart Company (Shanghai) tops US$6 million and the German investor holds the major share, the companies said, without giving ownership structure details.
D.A. Stuart also has another two ventures in Shanghai - Zwilling Kitchenware and Zwilling Cookware.