Driven to succeed in SME haven (hktdc.com)


	Tom Ros, Managing Director Permanento Hong Kong, with his award for Dutch Business Association SME of the Year

Dutch firm Permanento Hong Kong Ltd is a Hong Kong success story. A family owned and managed manufacturing enterprise, the company has demonstrated that being quick, creative and flexible are the keys to achievement in the Asia-Pacific.

"We offer good quality at a reasonable price, and the ability to provide customers with total solutions," said Tom Ros, Managing Director. "And in order to serve customers better, you need to be on the spot."

Although Permanento Group has been in existence since 1940, it moved its main operations to Hong Kong in 1999 to get closer to the Asia-Pacific, its biggest customer base. The firm now has two branches in the Netherlands, its headquarters in Hong Kong, and a production base employing up to 100 in Zhuhai, southern China.

Permanento is a quality converter of adhesive tapes, foils and foams used in a variety of industries, including optical, electronic, automotive, medical and mobile phones. It recently won the award for SME of the Year organized by the Dutch Business Association in Hong Kong.

Mr Ros said the firm's Asian operation is "growing bigger by the week".

Many advantages

"There are a lot of big advantages to having Hong Kong as our Asia-Pacific headquarters," he said. "Hong Kong is the spider in the web of Asia. From Hong Kong we can arrange everything for our operation in Zhuhai - logistics, customer service, sales, and finance. All of my key personnel are Hong Kong people, because the talent pool here is so good. They are loyal and hardworking, and they all speak English and Mandarin. From Hong Kong, it is easy to set up a wholly-owned factory in China. If we were to try that from the Netherlands it would be difficult, but you can do it from Hong Kong as it is an important hub for China.

"From Hong Kong, it is very easy to get to every part of Asia, and the airport is only a few minutes away. The financial structure is reliable, and of course you have Intellectual Protection in Hong Kong."

The Hong Kong business environment, which is so conducive to SMEs (small and medium-sized enterprises) has also benefited Permanento. When the electronics industry - which once accounted for 80 per cent of its business - collapsed unexpectedly in 2001, Mr Ros was able to respond fast. He trimmed staff (and therefore costs) and focused on other areas of business. The strategy was successful, and Permanento is now in expansion mode once again.

"There's a saying I always keep in mind: if you don't drive your business, you will be driven out of business," Mr Ros said. "Hong Kong puts us in the driver's seat. Almost all of our products are custom made, so it's important that we are fast and adaptable to move ahead with the customer.

"Hong Kong is SME-focused, so for a company like ours it's the perfect place to be."