Press Release - 04.10.16

„Huānyíng guānglín Pǔ ān huá“ – proALPHA Opens Office in China

With its new subsidiary in Taicang, the ERP software provider offers local support to German customers operating in the Chinese market and fosters the group's international growth.
proALPHA office in Taicang, China

The People's Republic of China still is the most important foreign market for many German companies. Approximately 5,000 companies have gained a foothold in China in the past couple of years, among them an increasing number of small and mid-sized enterprises. China attracts German companies with its sustainable, positive investment climate, continuous economic growth over the past few years, and a potential buyer's market of 1.3 billion people. The subsidiary in Taicang near Shanghai opened on October 1, 2016, and will be a valuable asset to customers who have already entered the Chinese market. With the foundation of the new subsidiary, proALPHA takes an important step towards its goal of providing local support to its customers operating in international markets, be it by means of subsidiaries or partnerships.

The region around Taicang is also called "Little Baden-Württemberg" because it has the highest concentration of German companies in China. About 200 companies are located there, among them a number of proALPHA customers. On-site ERP support is indispensable for handling complex processes and daily business tasks in China. The Chinese subsidiary enables proALPHA to meet its customers' demands and offer on-site training and consulting on new projects. proALPHA IT Consulting (Taicang) Co., Ltd. is located in the "German Centre Taicang", a center for small and mid-sized enterprises founded by BayernLB in June. A core team of German-speaking employees will offer service and support, including workshops and consulting.

"China has opened up to such a degree that it is very profitable for small and mid-sized German enterprises to enter this market," says Wolfram Menser, Manager International Business Development at proALPHA. "The office in Taicang enables us to provide local support to our customers. In the next couple of months we will hire native experts, who will join the core team."

Customers see the new subsidiary as a great advantage. "We introduced proALPHA ERP in our plant in China in 2010. The system not only streamlines all goods and value flows at our five sites in Germany but also supports us in harmonizing production processes across countries," says Nils Napp, Head of IT at HerkulesGroup. "We are happy that proALPHA decided to found a subsidiary in Taicang since we can directly draw on the company's expertise in China's local and economic conditions. This saves a lot of time." HerkulesGroup uses the APS module (advanced planning and scheduling) of the comprehensive ERP solution to control production planning, which involves five plants in Germany and the sites in the USA and China. It allows the group to communicate reliable delivery dates to its customers and deliver on time even if production processes have to be changed on short notice. By offering a country version geared to the Chinese market and local economic conditions, proALPHA proves that it wants to go the extra mile for its customers operating in China.

With the foundation of the subsidiary in Taicang, proALPHA aims to foster its international growth. "We want to achieve a strong presence in fast-growing markets in the next couple of years by founding subsidiaries or establishing partnerships," says Dr. Neumeyer, CEO of the proALPHA group. This will include cooperation with local partners in Russia and India as well as the foundation of further subsidiaries in Europe. In the USA, proALPHA has already gained a foothold with one subsidiary. Thanks to the foundation of the Chinese subsidiary, the company will from now on be able to support its customers around the world across various time zones. This allows proALPHA to provide follow-the-sun support.

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