TUeV Rheinland Group invests heavily in Japan

20th April 2005, Comments 0 comments

20 April 2005, COLOGNE - TUeV Rheinland Group, the German product-testing company, said on Wednesday it expected strong growth in its Asian business after heavy investment in new facilities just opened in Japan.

20 April 2005

COLOGNE - TUeV Rheinland Group, the German product-testing company, said on Wednesday it expected strong growth in its Asian business after heavy investment in new facilities just opened in Japan.

"Within the next few years, we'll be doing half our sales outside Germany," said Ralf Diekmann, spokesman for the Cologne-based group.

Manufacturers whose products pass TUeV tests can apply stickers to the goods so that shoppers can see they meet the exacting standards.

"We expect very fast rates of growth in China. Our laboratories in Shanghai are operating at absolute full capacity," said Diekmann, an expert on the Asian operations. "We also see huge potential in the Japanese market."

TUeV Rheinland is able to cope with a wide variety of commissions since the opening of its new German Technology Assessment Centre (GTAC) just over two weeks ago in Yokohama, Japan and enjoys a "excellent reputation as a testing organisation in Japan".

"When one considers that the GTAC building in Yokohama represents a value of EUR 100 million, and that our entire Asian sales in 2004 came to around EUR 120 million, then you can see how important Japan is to us," said Diekmann. "There's still plenty of room to expand."

TueV Rhineland Group began Asian operations in Japan in 1978 and currently employs a staff of about 300 at its Tokyo, Osaka and Yokohama sites.

In Asia as a whole, some 2,100 staff were employed in 2004 at 38 sites, not just in China and Japan, but also in places like Thailand and South Korea.

"We operate anywhere in Asia where consumer products are manufactured and must be tested locally," said Diekmann.

"Our Asian customers want to sell into the German, the European or American markets, and since we have the required accreditation, we can do testing for all the international markets."

The new Japanese facility provides "the complete product range" of tests.

"We can test any electrical or electronic appliance, whether it is an electric jug or a cardiac pacemaker," the spokesman explained. TUeV Rhineland also tests vehicles, medical products, a full range of consumer products and even high-tech robots for industrial use.

Smaller companies make up the TueV's principal body of customers, both within Germany and abroad.

"Many non-multinationals lack detailed knowledge of the regulations in the countries they are exporting to. Even for a simple shaver, there can be quite different technical regulations and standards among the various countries."

TUeV Rheinland Group had a total of 8,500 staff last year and worldwide turnover of EUR 770 million.

In Japan, according to Diekmann, there is strong demand for testing that simulates the ageing of a product.

"That is important for Japanese manufacturers who have to observe certain guarantee periods in Europe for their products. Our testing helps them to avoid the problem of products being returned for repairs or money back," he explained.

Japanese manufacturing quality is excellent, he added.

"In the initial tests, we really do meet a very low failure rate where Japanese products are concerned," he said.

DPA

Subject: German news

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