For companies that want greater control over the production process, but prefer to avoid the headaches associated with owning and operating a facility in China or setting up a JV with a Chinese partner, PassageMaker offers the following options.
Contract Manufacturing in China (Dedicated Production Line)
Client has steady orders which require 1 to 50 full time workers based inside PassageMaker’s existing facilities. Visit “Factory in Factory” for details.
“Factory in a Factory” service is designed to easily convert to a dedicated factory building if the scope of the project expands.
Joint Venture Manufacturing in China (Dedicated Factory Building)
Client has steady orders which require more than 50 full time workers and/or more than 1000 sq. meters of production space and/or a strong desire to legally own the facility.
This dedicated factory can be owned by client or an equity JV between PassageMaker and Client.
Typical PM-Client JV structure:
The client provides:
- Start-up capital
- Production training (if needed)
- Technical support (if needed)
- Equipment specs
- Material requirements
- Commitment to produce a given # of units over a given period of time
- Initial feasibility study
- Facility identification & analysis
- Job ad placements, interviews and hiring of local staff
- Equipment procurement
- Construction/decoration coordination
- Local government liaison
- Registration/tax planning (working closely with specialists to ensure entity is structured in an efficient manner)
- General management of daily operations