Joint-Venture Manufacturing in China

Contractual or Equity JV's with PassageMaker

Why Choose Joint Venture Manufacturing with PassageMaker?

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.

Virtual Joint Venture (Dedicated Production Line)

On behalf of the client, PassageMaker can set up a dedicated production line inside our existing facilities.  This virtual factory can fill the role of Contract Manufacturer in China.

Suitable in situations where the client’s production needs require up to 50 full-time workers. Visit “Factory in Factory” for details.

The Virtual Joint Venture (VJV) is designed to easily expand into a dedicated factory space if the project scope expands.  The VJV can be converted to an Actual Joint Venture (AJV) if the client wishes to formal ownership of the production site.

Actual Joint Venture  (Dedicated Factory Building)

On behalf of the client, PassageMaker will buy or lease a entire production site in China.

Suitable in situations where the client has steady manufacturing which requires 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.

The AJV can be converted to a WFOE (Wholly Foreign Owned Entity) if the client wishes to have 100% ownership of the production site. In other words, the “keys” to the AJV can be handed over to the client.  This flexibility is quite unique among China manufacturing options.

Roles and Responsibilities for VJV and AJV

The client provides:

  • Start-up capital
  • Production training (if needed)
  • Technical support (if needed)
  • Equipment specs
  • Material requirements
  • Project Finance & Payroll
  • Commitment to produce a given # of units over a given period of time

PassageMaker provides:

  • 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

A Better Way to Enter Into A JV

We have the licensing, relationships, factory space, expertise, tax and legal knowledge to help you build a dedicated manufacturing site in China. If you have a strong desire to legally own the facility, this dedicated factory can be owned by yourself or be an equity JV between PassageMaker and your company.

Selecting PassageMaker as your partner for joint venture manufacturing in China is better because:

  • You’re dealing with Western managers, based in China.
  • PassageMaker is ISO 9001:2008 accredited. We understanding the importance of quality systems and have set up JV’s in quality intense production classifications such as medical, automotive, electronics and toys.
  • PassageMaker is already a manufacturer in China and we own our infrastructure with no local partners. There are no ‘smoke and mirrors’ in terms of the parties involved.
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