Phoseon Technology, a manufacturer of LED curing systems, announced the formation of a Wholly Foreign Owned Enterprise (WFOE) in China to better serve the Chinese and greater Asia-Pacific markets.
The new limited liability company reinforces Phoseon’s commitment to the region and allows it to make investments and facilitate local sales and service transactions. The WFOE also enables Phoseon to source and potentially build local products for the domestic market.
“This enterprise will allow us to react quickly and make direct transactions with our customers, and facilitate our customer service process, in the China market,” said Bill Cortelyou, president and CEO of Phoseon. “This commitment by Phoseon strengthening local support in China including invoicing locally and maintaining stock in local warehouses allows Phoseon to meet the high level of support our customers demand.”
Another benefit of the WFOE is the autonomy and control it provides, allowing Phoseon to quickly and flexibly implement its company-wide global strategy. Other advantages include more efficient operations and product development, direct transaction with local currency (RMB) and adapt optimal practices with the local Phoseon team.
The WFOE is considered the optimal structure for companies that plan to have long-term business interests in China, while at the same time maintain maximum control and flexibility in the decision-making process and enabling joint ventures or local acquisitions, Cortelyou said.
“Investing in this market is proof of our commitment to a long-term presence,” he said. “It will give us greater control over our business venture in mainland China.”
Source: Company Press Release