The Straits Times / The Business Times News on OSIM

TUV to open Asia-Pac centre in S'pore

German technical service firm's centre will conduct training, house HQ functions

TUV SUD, a German firm that helps companies comply with product quality and safety laws, intends to invest at least $100 million to set up an Asia-Pacific centre in Singapore next year.

The centre based here will not only house the corporate finance and marketing functions of a headquarters, but will also take charge of training some 400-500 test engineers per year, who will be deployed to other parts of Asia.

In addition, TUV Asia-Pacific's president and chief executive Ruprecht Schattner said because Singapore is a major node for transhipment of products, many testing processes could be conveniently conducted at the shipping ports here. TUV Asia-Pacific expects to make a 'triple-digit' million-dollar investment in Singapore next year. But the speed of development depends on whether it is able to acquire certain laboratories it is currently negotiating with, said Dr Schattner.

'Our main job is not to do engineering or product development, but to make a product acceptable to consumers,' he said in an interview. 'Europeans, especially Germans, are conscious of the possible dangers from new technology, such as genetic engineering. Our job is to give people trust that products are safe by showing that potential risks have been taken care of.'

TUV has earned sales revenues of US$ 1.2 billion in 2005 so far, with US$ 271 million from outside Germany. It is an accredited testing body for a variety of industries, including pharmaceuticals, medical technology products, electronics and telecommunication devices.

TUV also consults with manufacturers and provides training, regulatory and inventory management advice related to product safety. With respect to pharmaceutical products, Dr Schattner claims: 'We are the largest such accredited body in Europe, with about 50 per cent market share. There are hundreds of accredited bodies, but many are small and specialised.'

TUV's 2005 sales in the US are small - US$36 million - because the US Food and Drug Administration takes charge of certifying all pharmaceutical products there.

In contrast, in Europe, private companies can be accredited to perform testing of specific products, Dr Schattner said. He noted that most Asian countries accept or base their domestic testing procedures on US or European standards.