FYI:

http://www.modelretailer...2010/06/Sanda%20Kan.aspx

Michael

Edited by user 22 July 2010 02:49:21(UTC)  | Reason: Not specified

There was a press release by Mr Pluta on this topic.

The main points: Märklin was surprised by the termination, but had already started to move away from Sanda Kan.
The termination affects the future only, contracts made for 2010 will be fulfilled.

They say that 6 to 7 % of the turnover are made with products from Sanda Kan.

This move will bring more production to Germany and Hungary.

A step in the right direction. It is time all countries were bringing their manufacturing home where it belongs even if it does cost a bit more.

dave

Just goes to show. I can remember a debate here if Maerklin had any products made in China and I can distinctly remember that there were strong denials of that ever happening and that Maerklin had nothing made in China and would not.

NN

Not necessarily! I'm told there are areas in Europe which are just as economic to manufacture in as in China. Of course, whether Marklin choose to do that is open to debate, but the possibility may be there.

It's around 00:12:00 on the DVD.
In German they say that Mr Pluta is the true boss of Märklin.

Mr Pluta is the Insolvency Administrator.
Dr Seitzinger is the Insolvency CEO.
Mr Mundil is the CEO.

I placed the names in the order that reflects the hierarchy to the best of my knowledge.
AFAIK Mr Pluta can tell the CEO which way to go.

I hope Marklin will been moved back to Europe!
We europens are better to producing products to better quality!

And a crude Google translation....

"Press release
Insolvency of Gebr. Märklin & Cie. GmbH
Christmas season is not affected
• All orders are executed
· Accounts with new suppliers in China are imminent
Göppingen, 23 June 2010. The lawyer Pluta GmbH is to terminate the supply contract by the
Sanda Kan Chinese partner the following opinion: Märklin alternative has been for a year
sought solutions for the supply and developed. They could not yet fully implemented
be, although the Rückholaktion is the tools on the sites Göppingen and Györ already started.
"The termination by Sanda Kan came therefore at this stage, surprising but not unwelcome, as
the supply volume can now be redistributed, "said administrator Michael Pluta.
The Märklin management yesterday in talks with the Sanda Kan - Executive Management all
existing problems are discussed and found a final solution. Let those pending tasks
be executed. This also means that the 2010 holiday season at all from the termination
and the further displacement of the tools is concerned. Furthermore, it can be said that the sites
Göppingen and Györ in Hungary will benefit from this development. The jobs can be secured.
The supply volume of Sanda Kan is responsible for 6-7 percent of the Märklin sales. The Märklin
Management has for long talks with alternative suppliers in China. Here are accounts
imminent.
For the long-term product pipeline means that a restructuring is planned. Products by Sanda
Kan are now being replaced by products from Hungary."

I don't know which products are being made in china - but I guess its mainly the low cost of labor there that makes the products cheap. Another thing is that some countries argue that the value of the RMB (the Chinese currency) is kept at an artificial level, making products too cheap - I think there are multiple ways to look at that.

Remember I once saw a show on TV about some shell-fish processing company in the UK, they had done a calculation that found that not only was it cheaper to send the scrimps (or what ever it was that they were processing) to a low salary country to have them hand pealed (high quality), than to do a machine pealing (low quality) in the UK -but it was also more environmental friendly as the energy use was so much lower with the hand pealing that it more than compensated the energy consumption for the 2-way transportation by ship. (It was some show that was hoping to show the profit seeking evil company owners insanity gone wrong)

But I think it will change - as the general wealth in countries like China increases, the salary (and safety) demands from the work force will also increase, hence it won't be as cheap anymore - its a slow process but I think it must change with time.

As an example, when I was a kid, if something was made in Japan, we laughed at it, considering it cheap junk - I don't think anyone would call Japanese products cheap or (in general) of low quality today - but I might be biased, I drive a Toyota and have several Sony products ;)

The chinese Yuan will be appreciated in small steps, which will make China production more market sensitive - so alternatives to China may pop up even in Europe for production at low cost. There are a couple of technically skilled low-wage countries in Europe who could benefit generally on this... If their politicians get it, that is...

Hi Darren,
I believe all Z products are made in China.
regards
Kimball

Is that true? Where did you hear/read that? I wouldn't disbelieve it entirely - the 2009 Museum wagon was made in China.

Hi Kimball

On the boxes and undersides of almost all of my Z locos and wagons it says "Made in Germany" (or West Germany for the older ones). However, I have recently received two OBB Taurus and a Hercules and it does not say on the box or the undersides of the locos where they are made. AND THEY HAVE PLASTIC BOGIES (trucks to some people).

-

Edited by user 19 November 2010 02:31:37(UTC)  | Reason: Not specified

Glad to hear that "M" is at least bringing some production back to Europe.The items have more "flair" if you will to me at least. It is after all "Marklin", not Ying Yangklin. Besides, Hungary need's work too.
Who remembers the 1 scale "Chine" Express set? They catalogued it early in the decade. It was green with yellow script on the bavarian branch line cars.
As for Chinese produced items, my goliath crane, and Koff II are made there. I give the Chinese credit, they have come a long way in manufacturing precision in just 20 years thanks to German, and certain American, and European concerns. India is not far behind.

That is good news thanks for the update.

most of the Z stuff has been what they have had made in China and the 7% figure would probally be close to what z sales would be with the bulk of the wagons made in hungary and the rest at goppingen
like most companies there has probally been components that have been got from china
but they made to marklin's spec and are assembled in germany where the quality control
and overall control is.
I know of companies in Aus /nz who have stuff made in china but they have their own quality
control people who work at those factories and accept the deliveries at the factory door before they
are shipped to down here, so they know what they are getting before it leaves china.
marklin is not the first there have been other German companies that have brought back their
production from china, because as the chinese labour market is wanting higher pay they are losing
the advantage they had, and in some cases the work is going to vietnam etc.
It was a smart move to open the factory to the public last christmas,who saw all the attention to detail
that goes on in the factory,but there are still some that expect a handfinished job from a production process
and that will never happen, because of sheer economics
well we enjoyed last weeks delivery a big one to help with the warehouse shift they thought we could help then
by taking extra so less for them to move, and some nice surprises too
happy buying all
old toot