Pekka Vauramo

China is no longer a low-cost country, says Cargotec's chief operating officer and deputy CEO, Pekka Vauramo, who moved from his native Finland to Hong Kong early this year.

Vauramo, 54, relocated to the special administrative region of China to drive the company's development initiatives in the Asia Pacific region. In the latest issue of Cargotec customer magazine Kalmar around the world, he shares the lessons he's learned in China.

He says that China offers "ample business opportunities", albeit amid tough competition. "There are also local competitors, and all those coming from outside China compete with them as well. It is not easy for anyone to do business here - China has been discovered."

Vauramo concedes that Asia's rapid growth rate has "certainly surprised" him and his colleagues. "Growth rates remain mere figures until you visit the region and compare the present situation with that of 10 or 15 years ago. The pace of change has been incredible, especially in China.

"If we seek growth in Asia, we have to act in time. We have to use proactive recruiting methods.

"I would like to say to those coming here that China is no longer a low-cost country. You have to pay the going rate for top talent, regardless of the nationality indicated on their passport," Vauramo says.

For those serious about doing business with the Chinese, Vauramo stresses that understanding local conditions and challenges are important.

"It is absolutely necessary to respect and follow local customs. For example, we use no language other than Chinese in China when we agree on important matters.

"I think that, as Europeans, we should encourage our local personnel here to make decisions. At the same time, we must ensure that they have the support of the headquarters. In this way, we can also show our partners that although we come from a different country and culture, we are doing business in earnest," he says.

This month, Forkliftaction.com News reported that Cargotec is establishing a global competence centre for container terminals development in Singapore to boost its ability to provide total solutions for its Asia Pacific customers

Cargotec has identified the Asia Pacific region as one of its growth areas that accounted for 40% of total sales in 2010. Cargotec's Asian production sites are in China, India, Korea, Malaysia and Singapore. In 2010, Cargotec's sales totaled EUR2.6 billion (USD3.8 billion) and it employs about 10,500 people. Cargotec currently employs over 1,000 people in China.