Overseas opportunities

Although the financial crisis and problems with the euro are hanging over the economy in Germany, there is a sense of optimism in Asia.

Economies there are expecting several years of growth, and it is hoped this may boost German business, too. More than 700 companies demonstrated their appetite for a slice of the Asian market at this year's Asia-Pacific Conference for German Business.

Business opportunities in Asia are nothing new - many German companies have been steadily investing in the region for decades. Martin Brudermueller is a board member of chemical giant BASF responsible for Asia Pacific.

"It is very important that when operating in Asia, most of the products are made on site," said Brudermueller. "That's why more than 60 percent of the products we sell here are also locally produced."

Although BASF was founded in Mannheim, they now have hundreds of production sites around the world, and around 50 of those are in Asia. BASF said they are now concentrating on boosting their market share there.

"It should be kept in mind that of the 750-billion-euro ($931.9 billion) chemical market predicted for 2020, 500 billion of that is in Asia. Therefore, Asia is the growth market for BASF," Brudermueller said.

Growth in troubled times

BASF is not the only German company to benefit from links to Asian economies. The precious metals and technology company Heraeus can thank the region for an encouraging start to 2010.

"Business in America and Europe is going backwards, as so many factories have closed down," said Heraeus CEO Juergen Heraeus.

The Heraeus family business, which has its base in Frankfurt, has now been in Asia for 70 years. Over 40 percent of their production is based in the region.

"When the companies have customers in Asia, it makes sense to expand business in Asia - and here everything moves very quickly. In one year here you can start up a factory and begin production," Heraeus added.

Piracy problems

While it may be quick to set up production in Asia, this also means that counterfeiters can adapt and copy European products in no time at all. Technology theft is a big problem, and piracy is becoming an increasingly expensive issue to deal with.

Michael Schadlich, chairman of the German company Dorma, says they are always on the lookout for pirated material.

"Normally when this happens we shut down production," he said. "But we are fooling ourselves."

"It's a bit like lawn mowing: you mow the lawn on Saturday but then one week later you need to do it all over again,"Schadlich said.

Attempts to combat piracy, despite costing companies thousands of euros, are considered a worthwhile investment.

Piracy aside, German companies know they can do good business in Asia. The biggest winners are those firms who took their chances early with the Asian market. The others are still struggling to catch up.

Author: Danhong Zhang (cb)
Editor: Stephanie Siek