China has an exciting and fast growing bakery market: The growing middle class will soon reach 500 million people with good income and education. Western style baking is trendy and to-go sandwiches cater well for dynamic cities. The average Chinese consumption of baked goods such as rolls, bread, croissants and baguette is still below 5kg per person annually. Japan is already at around 25kg and Germany close to 75kg.
In order to capture the anticipated growth, the joint venture KINGWACHTEL will "BUILD IN CHINA, FOR CHINA": We will produce three different models of the PICCOLO business version at KINGDOM's production site in Kunshan which is one hour north of Shanghai. KINGDOM's existing infrastructure will enable KINGWACHTEL to provide sales and technical after-sales services throughout this big country.
The offices of KINGWACHTEL are on the 28th floor of the Global Harbor building in Shanghai. They include a testbaking center and showroom as well as conference rooms. Mr. Su Chin will be the Chairman and Mr. Oliver Frey the Vice-Chairman of the joint-venture company KINGWACHTEL. The board of Directors will also comprise the Managing Director of WACHTEL, Mr. David Holzwarth, and KINGDOM's Managing Director Mrs. Yi Mingmei.
WACHTEL ASIA, our 100% subsidiary which was founded 15 years ago near Taipeh in Taiwan, will continue as an assembly factory and build our PICCOLO premium models, which are sold in other Asian markets such as Korea, Japan and Taiwan.