Ace Hardware Corporation managing director (international) Murray Armstrong says the new Hong Kong office is a springboard to the Chinese mainland and the Asia Pacific region

Ace managing director (international department) Murray Armstrong, said it was an easy decision to base the regional office in the SAR. "Hong Kong is the gateway to Asia and China and our business is growing so fast that we need to have a presence here. International sales have been growing 25-30 per cent annually and we expect the increase to continue."

Mr Armstrong said Hong Kong's proximity to China was another reason. "Most of the manufacturers are in southern China so we need to be near the source of our products to get the right prices. We hope to open at least three offices in China as well as stores soon."

Hong Kong platform significant for growth

The Hong Kong platform, he said, is significant for the growth of the company. "It is not only for sourcing. We have sold products in Asia for a long time. It got to the stage where we needed to have a presence in this part of the world in order to grow significantly," added Mr Armstrong. 

He also cited Hong Kong's logistics capability, efficient workforce, communication ease, low taxes and sophisticated way of doing business as compelling reasons for Ace's new office.

The leading hardware retailing cooperative surpassed US$100 million in net income for the first time in its 80 year history in 2003. It has 4,800 stores in 50 states and 72 countries.

AGD Asia Ltd also has stores or work with stores in the Philippines, Malaysia, Indonesia and are in discussion to open stores in China, Thailand, India and Pakistan.

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