Würth

Making The Shanghai Connection: Helping a Customer Expand into China

When the Industry Division of the Würth Group decided to expand its already sizable international distribution operations into Shanghai, all it took was one call to ProLogis. Within a matter of hours, Würth executives had an English-speaking ProLogis distribution expert on the phone in China and the beginnings of a plan to achieve Würth’s distribution goals for Shanghai.   

Succeeding as the World's Largest Trading Company

A family-owned business, the Würth Group is the world's largest trading company for fasteners and assembly technology. Established in 1945, the company began as a two-man operation selling fasteners and supplies in post-war Germany. Today, Würth is a one-stop distributor for more than 100,000 different products. In 2005, the company's annual revenues exceeded $8 billion, and its products were bought and sold in 82 countries. Globally, nearly three million businesses use Würth products and services.

Expanding the Global Footprint

Needing to get parts and supplies to customers in countries worldwide, the Würth Group has become practiced at logistics management. In the United States alone, it operates major distribution centers in six states.

The Industry Division of Würth wanted to expand its operations in China so that the company could more efficiently and cost-effectively ship its supplies to large companies with global manufacturing footprints. Würth executives decided that setting up a warehouse distribution hub in Shanghai would be the best way to achieve that goal.

Exploring What's Available in China

In June 2005, Würth contacted its industrial real estate broker in Indianapolis and asked if he had any contacts in China. The broker immediately called his contact at ProLogis who put him in touch with Pat Boot, ProLogis' senior vice president of Asia operations, located in Shanghai. Within a few short hours, the Würth Group had a connection in Shanghai and was on its way to setting up its first logistics operation in Asia.

Würth management wanted to make sure it explored all its options before leasing space. "We initially looked at the ProLogis property, but we didn't want to make such a big decision without any additional information, so we spent several weeks looking at 30 other warehouses in the area," explained Larry Stevens, general manager of Würth Fasteners Trading Company. Stevens quickly discovered that many of China's existing facilities are old and outdated. "Many of the warehouses we toured were actually converted factories," said Stevens. "In some cases, the factories weren't much more than a dilapidated building in the middle of a field with an old crane nearby. Needless to say, we were disappointed with what we found."

Finding a High-Quality Warehouse Facility

As a global leader in the connecting and assembly product industry, the Würth Group needed a state-of-the-art facility, and ideally, management wanted to work with a company that was well-connected  in the local market.

"After seeing what was available, it was an easy decision to go with ProLogis. There was just no comparison between them and the others," explained Stevens. "We're now located in a modern facility in ProLogis Park Northwest in a great location in Shanghai.”