The Deputy Mayor of the City of Changzhou – Mr. Want Chengbin, with the directors of the WEZ economic zone and the Israeli managers of Taditel and Ha’Argaz Group, at the opening of the new plant. (courtesy photo)

Israeli automotive electronics company Taditel recently announced its new production plant in China. The production facility is located in the CI3 industrial incubator Initiative in the city of Changzhou, Wujin Economic Zone (WEZ).

The entry of Taditel, of the Ha’argaz Group, into the incubator completes phase one of a unique endeavor, launched to provide Israeli companies with the opportunity to conveniently manage production in China, reducing the investment and risks associated with penetration into a complex, unfamiliar market.

“The Chinese-Israeli collaboration, growing stronger all the time, is backed by a series of agreements signed in recent years in order to broaden the scope of commerce and economic ties,” said Arnon Perlman, Consul-General of Israel in Shanghai. “The CI3industrial incubator in WEZ, Changzhou, is an example of a successful creative application of these agreements, for the benefit of the Israeli industry. The phase one occupancy of the incubator indicates that it does indeed meet a real, important need.”

Taditel says it opened its plant in response to both the challenge of global competition and the needs of its direct clients, such as Bosch, Delphi, Remy, Valeo and others. These clients are suppliers of car manufacturers all located in China, as a global production center of the automotive industry.

Taditel’s advanced voltage regulators can be found in the vehicles of the leading manufacturers, including: GM, Volkswagen, Hyundai, Toyota, Audi, Fiat, Peugeot, Citroen, Ford, BMW, Honda, Volvo, and many others.

“What guided us in establishing the incubator endeavor in 2011 was the identification of the need for local production in China among Israeli and foreign companies. This is necessary to maintain the companies’ competitive edge vis-à-vis global and Chinese competitors, and to meet their international and Chinese customers’ demand to purchase from nearby suppliers, in the Chinese market,” said Ilan Maimon, founding partner and CEO of the CI3 Incubator: “The incubator enables starting with limited series of production and gradually increasing their scope according to Chinese market sales, eliminating the need for a large investment to establish an independent plant.”

The incubator is a partnership between Israeli-owned companies PTL Group and Elan Industries. Both companies have many years of experience specializing in management and operation of Israeli and foreign companies in the Chinese market, and in establishing industrial and technological endeavors in China.

Among the Israeli automotive companies that already operate in China, are: Taditel, Arkal Automotive, Polyram, A.L Filter, CogniTens (purchased by Hexagon, Sweden), Nextec and Intelligent Transport System (ITS) companies such as Mobileye.

“Our presence nearby the global auto industry, where most leading manufacturers are located, creates opportunities and growth generators against a backdrop of trends in the auto market. The Group’s vision features a vast business horizon and the potential to expand its activities in China, in both electro-mechanical systems and additional fields. During the Group’s preparations towards establishing the manufacturing plant for electronic components for the auto industry, it was notably assisted and supported by Chinese governmental officials, both local and national,” said Shachar Kadshai, CEO of Taditel says.