Chinese market to be supplied from Shanghai plant in the future

Only 11 months ago the POLAR management turned the first official spadeful of earth in the Quingpu industrial area near the Chinese metropolis of Shanghai to build a new production plant. On 28th September 2006 POLAR Shanghai Machinery Ltd. was officially opened together with the new manufacturing plant of Heidelberger Druckmaschinen AG. The first POLAR machines have already been delivered to the customers.

After a short but very intensive planning phase, POLAR had decided to make this investment in Quingpu. Michael Neugart, Managing Director of POLAR, comments: "At China Print 2005 fair we were definitely confirmed in our recent decision to establish a production site in China: Everywhere in China a multitude of new competing firms appear to build machines similar to POLAR's machines. POLAR must canvass the Chinese market from inside China. This is the only chance to participate in shaping a booming graphics industry."

China is the biggest cutting-machine market in the world with a demand of more than 5,000 machines per year. The exchange rates, import duties and transport costs made it increasingly difficult for us to maintain our market share in China. Michael Neugart plans to "build machines for China in China. Now we can offer the approx. 100,000 print shops in this country our high-speed cutters at prices which are in line with market conditions. In China's largest economic zones alone, i. e. around Hong Kong, Shanghai and Peking we see a sales potential of over 200 POLAR machines per year. By 2008 we expect to regain a market share of 10% in the segment of quality high-speed cutters."

Our plant manufactures cutting machines which are customized for the Chinese market. As customers in China are mainly working with the 3B format POLAR will first concentrate on machines with a cutting width of 115 cm.

The new POLAR factory is equipped with state-of-the-art production machines. Initially, most of the parts will be supplied from Germany, but soon more than 75% of the components will be made in China, then finished and mounted in Quingpu. Only those parts that require a special know-how will continue to be delivered from Germany. Alfred Henschel, Managing Director of POLAR remarks: "In the meantime we are employing a highly qualified and committed staff in Quingpu. With this personnel we are sure to successfully manage the scheduled medium-term production capacities."

For further information, please contact:
POLAR MOHR,
Mr. Rolf Brand
Hattersheimer Str. 25
D-65719 Hofheim
Fax: 06192-204 311 or
E-mail: Rolf.Brand@polar-mohr.com