K.W. Chau of Gold Peak says Hong Kong law fully protects the joint-venture partnership

Utilising Hong Kong as a business platform and the lower production costs of the PRD, the partners have created a successful business model selling to both the Hong Kong and Chinese mainland markets.

The business model, involving Gold Peak's Singapore-listed member company Clipsal Industries (Holdings Ltd) and Dietzel GmbH, produces PVC conduits for electrical cables under the Clipsal and Univolt brands.

The joint venture resulted in the first PVC conduit fittings to meet acceptable safety requirements for the China market, according to Mr K.W. Chau, executive director of Gold Peak Industries (Holdings) Ltd and vice-chairman and managing director of Clipsal Industries (Holdings) Ltd.

"Gold Peak was able to effectively deal with government safety officials in the mainland and have the product approved for use in the construction industry," he said.

While Gold Peak as the Hong Kong partner brings to the joint venture its expertise in China business, Dietzel as the overseas partner contributes the technology. Combined with the cost effectiveness of producing in the PRD, it is a formula that works, Mr Chau said. A strong distribution network in both Hong Kong and China is a further strength of the partnership.

Trusted partners share common goal

	Michael Pocksteiner of Dietzel GmbH says experience proves the value of a Hong Kong partner for foreign firms entering the Chinese mainland

"It is most important to share a common goal - that is the basis of a success story," he said.

"Being here in Vienna, far away form Hong Kong, I cannot be involved in the day to day running of the business. In Gold Peak we have a valued and trusted partner, and we could not do it alone. While we brought the technology, Gold Peak brings the know-how and logistic and distribution networks. It is like a marriage, a win-win situation for both."

Dr Pocksteiner added that with the huge China market waiting to be explored, Hong Kong's location is "just ideal".

"Hong Kong has the experience of both worlds, of West and East, which is unique anywhere in the region or elsewhere. It is the melting pot of both cultures, which for us is the main reason we got together with a Hong Kong partner.

"I would definitely recommend having a Hong Kong partner to any foreign firm looking to enter the China market. Hong Kong is the entrance to this huge, almost unlimited market."

As Gold Peak further expands by seeking overseas partners for other joint venture projects, Mr Chau said Hong Kong would remain as the company's headquarters.

"Our top management will remain here because Hong Kong has stability," he said. "Hong Kong people have international business experience which is important in terms of building up strategies. The changes China is facing now are something more mature markets have already gone through, so again this is where Hong Kong's experience with overseas markets comes to the fore.

"The standard of English is a lot better than in the mainland, and since a lot of our partners are overseas firms, English is the medium.

"Hong Kong's clear cut legal system allows us to know exactly what our position is. We are happy to sign an agreement using Hong Kong law, because we know we will be fully protected."
 

Related links:
Gold Peak www.goldpeak.com
Dietzel GmbH Wien http://www.austria.org.tw/English/Dietzel.htm