Slide1 l.jpg
This presentation is the property of its rightful owner.
Sponsored Links
1 / 68

From nothing to a profitable wholly owned foreign investment enterprise in RunZhou, Zhenjiang, China in 250 days. PowerPoint PPT Presentation

  • Uploaded on
  • Presentation posted in: General

From nothing to a profitable wholly owned foreign investment enterprise in RunZhou, Zhenjiang, China in 250 days. Propulsys Inc Holding Company. World Headquarters Hopkinsville, Kentucky, U.S.A. Gerotor Hydraulic Motors Low speed High Torque A lot of power in a small package

Download Presentation

From nothing to a profitable wholly owned foreign investment enterprise in RunZhou, Zhenjiang, China in 250 days.

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript

Slide2 l.jpg

From nothing to a profitable wholly owned foreign investment enterprise in RunZhou, Zhenjiang, China in 250 days.

Slide3 l.jpg

Propulsys Inc

Holding Company

Slide4 l.jpg

World Headquarters

Hopkinsville, Kentucky,


Core products l.jpg

Gerotor Hydraulic Motors

Low speed High Torque

A lot of power in a small package

+/- 80% efficiency

Hydraulic Brakes

Integrated with the gerotor hydraulic motor

Stand alone operation

Production demands precision engineering

Very tight tolerance machining typical 2/10,000 inch

(40 times smaller than the thickness of a typical black human hair).

Core Products

Hydraulic gerotor motors l.jpg

Hydraulic Gerotor Motors

Hydraulic brakes integrated motor brakes l.jpg

Hydraulic Brakes & Integrated Motor Brakes

Slide8 l.jpg

Where are these motors and brakes used?

Mobile Equipment is the largest sector.

It is hard to go through a day where our products have not had an impact on your life in some way.

Slide9 l.jpg

Aerial Work Platforms

Slide10 l.jpg

Agricultural Equipment

Concrete paving equipment l.jpg

Concrete & Paving Equipment

Construction equipment l.jpg

Construction Equipment

Cranes winches utility vehicles l.jpg

Cranes, Winches & Utility Vehicles

Lawn care products l.jpg

Lawn Care Products

Why china l.jpg

Chinese domestic demand:

Already the largest market in Asia

Forecasted to double in size in the next 5 years

Industrial & Service infra-structure support

Chinese competitors were already emerging

Why China?

Propulsys china strategy l.jpg

4 key strategic reasons for Propulsys to opening a company in China:





Propulsys – China Strategy

Establishing a company in china l.jpg

Acquire an existing Chinese company:

Hard to find a good one that wants to sell right now!

Who are the current owners?

Takes a great deal of time and will not necessarily fit!

Establishing a company in China

Establishing a company in china18 l.jpg

Form a Joint Venture partnership:

Very difficult- many cross cultural issues cloud the opportunities

We tried……

We established a supply agreement with a Chinese manufacturer.

We established a good relationship…

We greatly exceeded forecasts.

18 months of dedicated and supportive negotiations to establish a J/V to manufacture additional new products.

Failed….January 17, 2005

Failed because the Chinese major stake holder did not want the control of the shares and votes and investment….

But, wanted control of his “destiny”…wanted to do it his way!

Establishing a company in China

Establishing a company in china19 l.jpg

Create a new company in China

Challenging in a country with such a long cultural history.

Administrative challenges

Language barriers

But, we had learnt a lot

Establishing a company in China

Where do you begin l.jpg

Critical factors to be considered :

Resource availability:

Industrial Land

Skilled work force

Good infra-structures

Energy supplies

Attitude of the local government to new businesses


Where do you begin?

Why runzhou zhenjiang jiangsu l.jpg

Why RunZhou, Zhenjiang, Jiangsu?

Location of zhenjiang city and the district of runzhou l.jpg

Location of Zhenjiang City and the district of RunZhou.

Slide23 l.jpg

Yangtze River delta is one of the machinery centers of both China and the world




Zhenjiang has a population of 2 89million l.jpg

Zhenjiang has a population of 2.89Million

Slide25 l.jpg

Zhenjiang a city with over 3,000 years of history.

Slide26 l.jpg

Zhenjiang cultural heritage

Zhenjiang infra structure l.jpg

Zhenjiang Infra-Structure

Zhenjiang is pivotally located with a highly developed infra-structure, including a deep sea port.

Bridging north south china across the mighty yangtze river l.jpg

Bridging north & south China across the mighty Yangtze River

Slide29 l.jpg



Zhenjiang education system l.jpg

Zhenjiang Education System

6 universities

9 professional colleges

14 adult education schools


20,000 qualified technical graduates 210,000 student graduates

Why runzhou zhenjiang jiangsu31 l.jpg

Resource availability:

Industrial Land Highly available and well located

Skilled work force Plentiful & skilled at all levels

Good infra-structures Good and getting better every day

Energy Well planned energy resources, with daily availability.

Attitude of the local government to new businesses

We traveled China in search of the right location, Beijing…..Jinan…..Wuxi…..Suzhou..…Shanghai….. Ningbo….. Guangzhou…..Shenzhen and more.

Zhenjiang & RunZhou Governments offered the BEST new business investment environment.

Why Runzhou, Zhenjiang, Jiangsu?

If you learn nothing else from my presentation please learn this l.jpg

The key to success in China

Is not your investment

Is not your products

Is not your designs

Is not your production techniques


50% of your executive manager’s time will be absorbed in building and sustaining relationships

If you learn nothing else from my presentation….please learn this!

Key objectives established at 1 st meeting with runzhou district government day 1 january 24 2005 l.jpg

Conclude negotiations with the Chinese authorities to:

Establish a Wholly Owned Foreign Investment Enterprise.

Target April 30, 2005

Maximize incentive and tax benefits for 5 years & beyond

Target April 30, 2005

Obtain Business License

Target April 30, 2005

Conclude Land Use Contract

Target April 30, 2005

Establish bank accounts and financial relationship

Target April 30, 2005

Selection and appointment of critical managers

Target May 15, 2005

Take “possession” of the land

Target May 31, 2005

Construction of 92,000 sq ft building to be completed by September 30, 2005

Commence production November 1, 2005

Key objectives established at 1st meeting with RunZhou District Government . Day 1 - January 24, 2005

Slide34 l.jpg

White (China) Drive Products Co. Ltd.

Business License issued April 28, 2005

Ground zero may 2005 l.jpg

Ground Zero May 2005

Foundation stone laying ceremony june 8 2005 l.jpg

Foundation Stone Laying Ceremony June 8, 2005

Unshakeable foundations like the great wall of china l.jpg

Unshakeable Foundations… like the Great Wall of China

Progress late august 2005 l.jpg

Progress….. Late August , 2005

The building contractors have gone october 2005 l.jpg

The building contractors have gone……October 2005

Wcdp electrical sub station l.jpg

WCDP Electrical Sub-station

Heat treatment l.jpg

Heat Treatment

Production equipment operating 24 7 l.jpg

Production EquipmentOperating 24/7

Wash dry and paint operation l.jpg

Wash, Dry and Paint Operation

Qms equipment l.jpg

QMS Equipment

Test lab and r d center l.jpg

Test Lab and R&D Center

The first bk10 hydraulic brake january 6 2006 l.jpg

The first BK10 Hydraulic Brake January 6, 2006

Slide48 l.jpg

Cost of Operating in China

Slide49 l.jpg

Utility costs

Electricity: $0.05/kw/h

Water: $0.28/m3

Gas: $0.30/m3

Material costs l.jpg

Typical savings versus the same or similar material in USA


Because we are a Chinese company

Material Costs

Slide51 l.jpg







skilled worker

technical operator

middle manager

design engineer

senior manager

Company vision l.jpg

Conduct Research and Development, Manufacture and Sale of:

Advanced technology multi-disc integrated and non-integrated brakes.

New generation of gerotor motors using state of the art materials and process technologies.

New generation of steering units using state of the art materials and process technologies.

Company Vision

Company mission l.jpg

WCDP will design, develop and manufacture

World class quality products

Sell them at competitive prices

Be the worlds lowest cost manufacturer of these products.

Company Mission

Managing a chinese company l.jpg

Traditionally foreign investors make one of two choices in the management of their Chinese company:

Employ expatriates as their senior managers

Transfer the “corporate” management skills

Transfer good and bad habits

Transfer this is the way we do it in …….


An American managed company in China, and loss of gains to be made through synergies of Chinese and American techniques & management style.

Employ only Chinese

No transfer of corporate management skills

Only Chinese good & bad habits

Very poor inter-company communications


A Chinese Managed company with NO synergies


You can choose to develop a cross cultural management team to take the best of both cultures!

Managing a Chinese Company

Senior managers l.jpg

Senior Managers

Jennifer Chen

V/GM Operations & Sales

Mike Yuan

Finance Manager

Dr. John Zhang

Engineering Manager

Paul Chen

V/GM Employee


Developing our company culture l.jpg

WCDP takes the wonderful 5,000 years of Chinese culture and blends it with the best western practices and management techniques to create our own culture.

WCDP is different… unique.. Members of a new order.

The WCDP culture

Equal opportunity is given to every employee.

All employees are given the opportunity to develop and grow.

There are no limits… all employees can be as good as THEY want to be.

All employees strive every day to be the very best.

WCDP rewards those who make significant contributions

WCDP has established a team environment, with every team member accepting their responsibilities as members of the WCDP team.

Developing our company culture

4 strategies of operational excellence that position our chinese plant as a world leader l.jpg

Customized and system controlled manufacturing, using state of the art ERP technologies

Lean manufacturing technologies to achieve a production velocity of 10 days.

Utilize new technologies and materials to achieve lowest total production costs

One piece flow – not just batch production, but meeting the needs of the customer

4 Strategies of Operational Excellence that position our Chinese plant as a world leader

Information technologies strategies l.jpg

Integrate WCDP into corporate wide global ERP system and 24 hour 7 days a week intranet capabilities, using latest technologies and systems.

Access to all data bases in Mandarin to facilitate knowledge driven decisions.

Flexible hardware and software systems that are rapidly expandable and support double digit growth

Application of customized ERP technology to speed up the manufacturing cycle to:

Optimize equipment utilization

Minimize inventories

Maximize productivity

Quality Management integrated into the total ERP system

Information Technologies Strategies

Manning plan l.jpg

Manning Plan

Slide60 l.jpg


Current Plan

Has a well defined development and manufacturing program

Current Products

BK10 Multi Disc Brake

SB Multi Disc Brake

WR Motor

Future plans l.jpg

Propulsys believes it is uniquely positioned:

Many companies including Fortune 500 companies recognize the need to be in China, but:

Lack the knowledge and skills to establish a manufacturing and or logistics operation in China.

Do not understand “how China works”

Do not have the government contacts

Are afraid of the unknown and distrust the Chinese

Top executives are not prepared to spend the time in China working through these issues

Have great concerns about systems integration

Future Plans….

Future plans62 l.jpg

WCDP has the capability of addressing all of these issues and concerns.

Propulsys Inc. is prepared to invest more to expand and diversify when the opportunity arises.

WCDP has firm options with RunZhou Government that will triple the landarea.

Future Plans….

Future plans63 l.jpg

WCDP will offer to third party companies:

Strategic Partnership Relationship to design, develop and manufacture:

Finished Products

Major sub-assemblies

Metric designs

Chinese materials and components.

Future Plans

What are your plans for the future l.jpg

IfChina is in your future, now you have 2 new possible investment opportunities:

A strategic partnership with WCDP or,

Directly with the RunZhou Government

Can we help you?

What are your plans for the future?

  • Login