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City to Be China HQ for Thomas
Thomas Group, a U.S. management consulting firm, plans to set up its China headquarters in Shanghai in the first half of next year, despite a projected decline in third-quarter earnings, its top executive said.

"Shanghai is a good location for our headquarters and our future operations on China's mainland," John Hamann, president and chief executive officer of the group, told Shanghai Daily on Tuesday.

Hamann said the city's dynamic economic growth and its role as the nation's industrial center are main reasons for the company's decision.

Thomas Group, he said, is hoping to work with companies that want to increase their competitive edge after China enters the World Trade Organization, which is expected to intensify rivalry in the Chinese market.

"First, we will focus on the manufacturing industry," Hamann noted.

The Nasdaq-listed company initially will zero in on Shanghai, as it still doesn't have enough knowledge about the whole domestic market, he added.

"We will later conduct business in wider areas, such as the western region, as the Chinese market is huge and ready to fully open up to foreign investors," Hamann continued. Last week, the group announced it had revised projected earnings for the third quarter of this year, due to the global economic slowdown.

The company is now projecting a loss of US$0.7 to US$0.8 per share for the period. It previously forecast a profit of US$0.73 and US$0.95 a share for 2001.

"Thomas Group is encountering many of the same problems faced by our competitors," he said.

The company, however, said it is optimistic about its future business in China.

(eastday.com October 25, 2001)

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