Successful in Asia
The Perfect Match from the Very Beginning
Find out why ZwickRoell has chosen the German Centers as partners for its internationalization efforts in this interview with Dr. Jan Stefan Roell.
Founding
It’s that simple: Launch at the German Centre Singapore
In February 2023, ZwickRoell celebrated its anniversary in Singapore and looked back on 25 years of commitment in Asia. In 1998, Dr. Jan Stefan Roell, owner of ZwickRoell, moved to Singapore with his family to establish and further develop the company’s ASEAN business from there. “The decision to establish a small company in Singapore was an important step in our internationalization strategy. And in the beginning, you don’t need much: a desk, a lawyer, a tax advisor, a bank — and most importantly, the opportunity to exchange ideas with others who are in a similar situation but have already been there for a few months or a few years, and with whom you can chat over a Tiger Beer,” says Roell. The decision to set up the office at the German Centre Singapore was a logical next step, because that’s exactly what Roell found there: everything under one roof.
The decision to start a small company in Singapore was an important step in our internationalization strategy. And you don’t need much to get started: a desk, a lawyer, a tax advisor, a bank — and most importantly, the chance to talk with others who are in a similar situation but have already been there for a few months or a few years, and with whom you can catch up over a Tiger Beer.
Dr. Jan Stefan Roell
Owner of ZwickRoell
Development
Simply Flexible: Growth in and with the German Centre
Over time and as its business grew, ZwickRoell moved to larger spaces within the German Centre several times. “I always had the support of the German Centre management. They took an interest in all the companies in the building and always asked about our needs. We didn’t have a fax machine back then, so we used the one at the German Centre. We needed a larger office, so they made that possible and oversaw the expansion with their technicians. We always felt very comfortable there — and only left when we felt we needed our own property where we could fully implement our corporate design,” says Roell.
Further Development
Just Do It: From Singapore to Asia’s Markets
Today, ZwickRoell has a regional headquarters in Singapore, where it opened an Xperience Center for Asia Pacific in 2019, featuring a testing laboratory, the ZwickRoell Academy, and a large exhibition area showcasing ZwickRoell products.
“Starting out with the support of a German Center, growing, and then branching out on our own is probably exactly how the co-initiator of the German Centers, Prof. Berthold Leibinger — CEO of Trumpf and then-president of the VDMA — envisioned it,” says Roell. “I wrote him a letter back then to thank him for his initiative, from which my company benefited greatly. In fact, he replied because he found two things remarkable: that I thanked him and that the end of the letter didn’t include anything he now had to do.”
From Singapore, ZwickRoell has tapped into additional markets in Asia and is now active through its own subsidiaries and partners in Malaysia, Vietnam, India, South Korea, China, and Japan, as well as through partners in other countries.
Factors for Success
Drive Solutions and Engage Partners
ZwickRoell’s successful international expansion is primarily due to two factors: first, excellent communication between the parent company and the foreign subsidiary, and second, partners who understand what companies need when operating abroad.
“I didn’t go to Singapore as a salaried managing director, but as the owner of the company. The parent company in Ulm couldn’t simply ignore my problems; it had to address them,” says Roell. “That helped us as a company to take the right approach to internationalization and develop a good understanding of the needs of local customers.”
Roell illustrates just how important this dialogue between the parent company and its foreign subsidiaries is with an example: “We were tasked with identifying replacement parts for machines we had sold to our Asian customers. However, we didn’t have the machine drawings on site. The parent company’s initial suggestion — to send the drawings back and forth — didn’t strike me as a smart solution. So they came up with a system that makes the drawings available — not only to me in Singapore, but also to the other locations worldwide.”
Partners like the German Centre are important because they help mitigate risks by contributing their experience, expertise, and reliable networks. “In Singapore, we also established contact with the EDB — the Economic Development Board — very early on,” says Roell. “They provided us with excellent support during the startup and growth phases. That’s because they understand that when companies in Singapore thrive, the city-state thrives as well.”
Whenever there was a German Center, ZwickRoell also entered a foreign market through a German Center. This was the case in Indonesia, India, and Mexico. ZwickRoell is still based at the German Center Mexico today.
“Our most important growth markets are in North America — that is, the U.S., Canada, and Mexico — followed by China. We’re somewhat concerned about political developments there, but it’s a huge market and, above all, a savvy one. And then, of course, there’s the ASEAN region. Taken together, all these countries represent a large market, and we see a lot of growth potential,” says Roell. If he could choose where else a German Center should be located, it would be in Nigeria, for example. “In Africa, we have a few opportunistic business ventures, but it’s not enough to support our employees. If, for example, there were a German Center in Nigeria and we could rely on good infrastructure that makes things easier for us, that would be very interesting for us,” says Roell.
In fact, the internet, digitalization, and networks make it much easier today to access information and start a business abroad. “I had ChatGPT write the speech for our 25th-anniversary celebration in Singapore. I entered six keywords, and the result was quite impressive — it worked perfectly for this purpose. But the German Centre has one unbeatable advantage: As a CEO, you can go there and learn from others. That’s just great.” Despite all the digitalization, personal contact on the ground remains indispensable.
Global Innovations
About Zwick Roell
ZwickRoell, based in Ulm, is today a global leader in innovation in materials testing. With more than 1,800 employees — about 45% of whom are based abroad — the company has a presence in more than 50 countries through production facilities, branches, and partners. Its customers come from more than 20 industries, which perform over 85 million tests annually on metals, plastics, paper, construction materials, textiles, and many other materials using ZwickRoell machines. With total group revenue of 288 million EUR in 2022, the company is a classic example of a German medium-sized enterprise; approximately 70% of this revenue is generated abroad — and this will continue to be the key driver of growth in the future.
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