A Brief case on DI's work with staircase and banister manufacturer Dolle A/S on their work establishing a joint venture in China.

1. CASE
Establishing a joint venture in China.

2. DI’s Approach

3. 5 GROW
Dolle’s Chinese supplier, a competent Suzhou based
company, had become responsible for more than 15
percent of Dolle’s total sales.
Dolle’s management became uneasy relying on the
single supplier, and sought a solution to minimize
company vulnerability.
Problem Statement

4. About Dolle
Dolle A/S is among the worlds leading staircase
manufactures, developing, producing, and selling
staircase and banister systems in wood and metal.
The company is a leading player on the European
market, and the Dolle’s products are sold in excess
of 40 countries world wide. Dolle sells more than 90
percent of its products in foreign markets.

5. The Best of Both Worlds
Dolle wanted to establish a wholly owned production
company, but at the same time maintain the close
relationship with its Chinese supplier and its
competent management and substantial production
knowledge.
Simultaneously, Dolle wanted to control the
production, not only to minimize vulnerability, but
also to secure future growth and strengthen the
company’s competitiveness.
30 - 40
%
Dolle’s savings
on purchases in
China compared
to Danish
suppliers

6. Supplier Resistance
Naturally, the Chinese suppler was not thrilled about
investing in a new joint venture, getting no more
than 49 percent ownership.
Dolle initiated a dialog with the Chinese supplier’s
owner, however when meeting in China, it quickly
became clear that the Chinese owner did not desire
becoming a minority shareholder in a new
company.
Kultural differencies,
language, and a long
processing time were
just some of the
challenges we met, when
establishing the Chinese
company. DI had
extensive experience in
the Chinese market,
where we had basically
none.
CEO, Francois Grimal
Dolle A/S

7. The Solution: A Joint Venture
In close collaboration with Dolle, DI composed a
feasibility study, supplying Dolle’s management with
advantages and challenges relating to production in
China.
The study included a business plan building on input
from the Chinese CEO, who mapped the economic
implications, should Dolle chose to establish
production facilities I Suzhou - and negotiations
were resumed.
DI’s business plan was
splendid and without
shortcomings, and their
assistance during the
negotiations with our
Chinese partner were
central to the outcome.
CEO, Francois Grimal
Dolle A/S

8. 80-10-10 Agreement
The partners reach agreement giving Dolle a
majority 80 percent of the shares. The Chinese CEO
became head of the newly established Dolle-owned
company and simultaneously bought 1o percent
ownership, while the owner of the Chinese supplier
bought the remaining 10 percent.
DI was an objective
partner, who
strengthened our
business plan and
secured the boards
approval. Having DI
onboard served as a seal
of approval, not only to
the board, but also to our
partners in China.
CEO, Francois Grimal
Dolle A/S

9. Since launching the Joint Venture, Dolle
has expanded twice.
++
%Increase in
revenue since
lunching in
China.
50
75
Of Dolle’s sales
are products
manufactured
by its Chinese
subsidiary

10. … And DI assisted Dolle in the USA.

11. We help our members win, globally
Confederation of Danish Industry’s international consultancy unit
Experts on strategic business development in growing and developing markets
Experience from more than 700 projects in plus 40 countries
Offices in Russia, China, India, Brazil, USA, and Mexico
Global network of sister organizations and partners

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