Rettig Heating, the world's biggest water heating equipment and system maker, intends to build its biggest overseas manufacturing base in Tianjin, a major port city in north China, with a US$20 million investment.

"We need this wholly-owned operation to cope with the fast development of the construction market in China, especially," said Roland Wallner, managing director of Rettig Heating (Tianjin) Ltd.

According to Wallner, the first phase of the project is completed and the facilities will be used mainly for warehouse, logistics and office purposes.

The second phase began earlier this month and will house a production line to supply the Chinese market.

"Our first product will be tailored according to the requirements on water and heating systems in China and we are the first foreign brand to do so," said Wallner.

He expects the factory will be completed this year and begin operations in 2004. It will have an annual capacity of 220,000 radiators.

The rapid growth of the construction market in China and especially in Beijing, has been a major factor in Rettig Heating's decision to open its first production base outside Europe.

Figures from the National Bureau of Statistics show 280 billion yuan (US$33.82 billion) was invested in China's real estate industry in the first five months, rising about one-third year-on-year and 57.9 million square metres of home floor space was completed, 41 per cent higher than the same period last year.

In Beijing, more than 4.35 million square metres of homes were sold from January to May, doubling the figure for the same period in 2002.

At the same time, the 2008 Olympics Games in Beijing also means big opportunities for companies like Rettig Heating.

Wallner opined that as China has ambitions to hold the best Olympics in the event's history, and to that end will build the best sport venues in the world, the use of state-of-the-art heating systems will be a natural choice.

Rettig Heating accounts for more than 30 per cent of foreign products in China's market.

In the future, the company's factory will also be a major supplier to the Russian, South Korean and Japanese markets.

"We will become a leading panel radiator in Northeast Asia," said Wallner.

(China Daily July 21, 2003)