The Hindu Business Line : German team satisfied with quality of components

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Coimbatore Feb. 16 A delegation of industrialists from Germany, which visited some of the engineering units in Coimbatore as part of identifying outsourcing partners, is impressed with the quality of products turned out by the units here.

The German group representing manufacturers, who largely cater to the automobile industry, apart from mechanical and electrical engineering industries, had come to India looking for suppliers since the labour and material cost are on the rise in that country.

Mr Werner Liebmann, General Manager, German Turned Parts Industry Association, Duesseldorf, said here recently that the business size of the turned parts industry in his country was around 5.5 billion. The industry had been growing at around 10 per cent for the past few years.

He said the members had visited China a couple of years ago on a similar mission but the visit did not result in German companies sourcing parts from China. Asked about the types of components the German companies were looking for outsourcing from Coimbatore region, he said his delegation was looking for suppliers who have the quality certification and the equipment to meet their specifications.

The members of the delegation visited six companies in Coimbatore region and "it was very, very impressive" and "it is high level here." On the likely quantum of purchase of turned parts from Coimbatore, Mr Liebmann said he could not fix a volume since they were going for outsourcing of parts for final products that their customers wanted to buy from them (German companies) and they needed their clearance. It depended on their customers and what they could outsource. The logistics would clearly be a problem.

Asked how long it would take for the German companies to take a decision on outsourcing components from Coimbatore, he said they should work out the cost of purchase from India.

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