OBJECTIVES FOR THE STUDY
• To evaluate if where, and how Union Camp should establish a corrugated box plant operation in China.
• Provide options and their justification
• Develop an entry strategy for China
The study covers Mainland China, with special focus on the Pearl River Delta, Greater Shanghai and Beijing/Tianjin.
APPROACH AND DOCUMENTATION
The study was conducted as a close team interactive effort between Union Camp Hong Kong and Jaakko Poyry Consulting Finland (a Finnish and world leader consultant company in the field of paper fibre and packaging) between August 1995 and April 1996.
This study combines the results of desk research and extensive field interviews in the three regions. During the study period the team conducted thorough face-to-face interviews with some 200 foreign investment enterprises, joint-ventures, Chinese enterprises, public organizations, authorities and associations. End users were the main focus of the interviews, although distributors, suppliers, manufacturers and potential partners/competitors were also interviewed.
This paper also reviews certain literature regarding market entry mode strategies, strategic alliances, and critical success factors for choosing the right partner, all of which add credence to the study's final recommendation.
CONCLUSIONS & RECOMMENDATIONS
• China offers a strong opportunity to grow a significant corrugated container packaging business.
• At present, the most attractive means of entry is through a Joint Venture in the Pearl River Delta.
• George Ip (Eastgate) is a desirable partner and the deal we discuss has merit.