Development

Philips' to build second base in Chengdu

(chinadaily.com.cn)
Updated: 2011-06-27 11:05

Philips (China) Investment Co Ltd will set up its second regional headquarters in Chengdu, the capital of Sichuan province, to look for potential investments in the country's central and western regions.

Philips and Chengdu Hi-Tech Development Zone management committee signed a memorandum of understanding for strategic cooperation on June 20.

The new Philips branch will be located in Chengdu's high-tech zone and house marketing, technology support, and research and development, the agreement stated. The headquarters also will house a training center for the company's medical care business division and a test center for its lighting business division.

"Philips China will advance further to central and western China by setting up a second regional headquarters in Chengdu. This is another important measure by Philips China to implement a localization strategy," said Philips Greater China Chairman Kong Xianghui.

"In the future, Philips will intensify our talent deployment and market channel building in inland cities by taking advantage of the unique geographical conditions, competitive resources and sound investment environments of Chengdu," Kong said.

Yuan Zongyong, deputy director of the Chengdu High-Tech Development Zone's management committee, praised the decision by Philips to establish operations in Chengdu.

"Against the backdrop of China Go-West Strategy and global industrial restructuring, the Chengdu High-Tech Development Zone is attracting increasingly more internationally famous companies with its advantage in technology, skilled workers, its regional position, market, transportation and costs," Yuan said.

"Philips is a top Fortune 500 business. I believe the establishment of Philips' Chengdu regional headquarters will facilitate Philips' global strategy and localized performance in China," he said.

Philips, which has its international headquarters in the Netherlands, makes healthcare, lighting and consumer lifestyle products. It opened its first regional headquarters in China in Hong Kong, but later moved the operations to Shanghai.