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SKF Group's factory in Shanghai. The Swedish company operates 18 manufacturing units and several service units in China. Provided to China Daily |
While architects of the China (Shanghai) Pilot Free Trade Zone aim to catapult the city to the forefront of global financial, trade and logistics centers, they may never have expected to welcome a like-minded enterprise so soon.
On June 10, just months after the pilot zone took off, SKF Group, the world's largest ball bearing maker, launched its North East Asia Distribution Center in the Waigaoqiao bonded zone, an integral part of the FTZ.
The endeavor brought SKF's global chief executive officer Tom Johnstone to Shanghai to attend the inauguration.
"The move indicates the attraction of the China market in terms of its strategic significance, as well as SKF's continued commitment to China," says Johnstone, who has spent 37 years with the Swedish firm and been at the helm of the company for more than a decade.
Before the establishment of the center, trade transactions by SKF in China were generally conducted in foreign currency by its Hong Kong subsidiary and logistics was largely handled by its Singapore unit.
Amid the global economic crisis in 2009, given SKF's development prospects in China, the company conducted a string of surveys before it decided to integrate and move such functions to the new Shanghai facility.
Johnstone says Asian business has expanded greatly and accounted for 24 percent of SKF's overall sales in 2013. The quick development of markets in Northeast Asia made it essential to split the logistics service in the Asia region into southern and northern parts to better serve customers. Both areas were previously served by SKF Singapore.
SKF North East Asia Distribution Center in Shanghai, set up at the start of 2013, integrates logistics, trade and settlement functions, and covers 47,275 square meters.