Wholly foreign owned enterprise, manufacturing industrial adhesives for the printing, packaging, furniture industry and other industries. set up in 2003 in Xi'an and moved to Shanghai in 2005. Due to the growing demand of high-quality industrial adhesives in China, the customer decided to set up a production facility in China. Different alternatives were evaluated, but in the initial phase it was decided to rent offices, laboratory and small scale production space in the facilities of Horsten International in Xi'an.
In 2005 the customer decided to increase its capacity and extend its product range. Proximity to its customers was the company’s main motive to move to Shanghai. Thanks to the decision to start small scale and to gradually extend its product portfolio and capacity, the customer was able to plan its development in line with its financial and operational abilities.
Involvement of Horsten International
Horsten International was involved in this project from the early beginning, including the identification of the preferred business model, preparation of the feasibility study, engineering, legal registration of the company, recruitment of staff, import of machines, setting up of the administration and accounting system, supervision of construction and installation, accounting and monthly financial reporting.
While in Xi'an, Horsten International was a 20% shareholder in this WFOE. When the customer decided to move to Shanghai, Horsten International stepped out of the WFOE.