Helmut and Sonja Ingrid Widdek, proprietors of Emper Industrial Ltd, with their silver award won in 2000 for Best Managed SME, presented by Hong Kong General Chamber of Commerce

Having a Hong Kong base enables leather goods manufacturer Helmut Widdek to keep his finger on the pulse of his production plant in the Pearl River Delta (PRD), and speedily deliver to the major fashion houses of Europe.

According to Mr Widdek, managing director of Emper Industrial Ltd, Hong Kong's close connections to both the Chinese mainland and the rest of the world give his firm a competitive edge.

"Our clients include some of the world's best designers - Armani, Loewe and Gritti - so obviously the standards are exacting," he said. "The fast movement of goods in and out of Hong Kong means we can serve them as quickly as if we were in the European Union (EU). For example, our ex-factory shipments leaving China on a Friday normally arrive on Monday in major European cities, or latest Tuesday at any place in the EU."

Mr Widdek, an Austrian entrepreneur, founded the company in 1988, together with his wife Sonja Ingrid, who is company director. Hong Kong is the logistics centre of the business, while the factory in Guangdong employs 750. Emper's woven leather shoes, shoe uppers and clothing have become highly sought after by fashion houses in Germany, Italy and Japan, markets he describes as "unyielding" in their demand for quality products.

Logical lifestyle choice

Mr Widdek says it is logical to live in Hong Kong, which offers both lifestyle and business advantages, while making use of the low-cost manufacturing base in the PRD.

"The set up of our company is a classic example of using the huge, readily available and dedicated workforce in China, together with the well-oiled supportive service industry established in Hong Kong," he said.

"Hong Kong has a well-functioning banking system which the mainland Chinese banks accept and are comfortable dealing with. The streamlined customs facilities between Hong Kong and Guangdong province reduces the transit time to less than three hours, so my wife and I are able to travel to the factory every other day to spend time on the shop floor monitoring, teaching and encouraging the labourers.

"Our hand-woven shoes are a labour-intensive product that can only be produced in a low-cost manufacturing base.  However, the product must move quickly to the consumer. Hong Kong provides us with the means to meet both of these objectives."

Dedicated workforce

Mr Widdek has also found a dedicated workforce on both sides of the border.

"Hong Kong offers us an international lifestyle, with people who are determined to work with you to build a successful company," he said. "All our Hong Kong employees have been with the company for more than five years.

"Our Chinese mainland workers - who I believe are among the best in the world - are driven not only by money, but by job security. Of my 750-plus employees in Guangdong, over 160 have worked for the company for over 10 years. Our strength is in our people, and our people are absolutely the top standard."