Leading the China market entry of a hatchery technology company


Background: Tractus was retained to lead the China market entry strategy development and implementation of Nova-Tech Engineering, a leading American agricultural technology company. The company had successfully entered more than 40 countries around the world with its innovative product but had found the tax environment in China prohibitive to its typical commercial structure used in other market entries.

Project: Tractus brought the Nova-Tech into its Business Incubator, providing sales representation in-country, shared office space and administrative support and oversight by Tractus’ experienced China-based consulting managers, leading to the company’s first equipment leasing requests by China-based clients.

Tractus was further retained to help to Nova-Tech circumvent prohibitively costly import taxes on its equipment. Tractus quickly identified options to avoid prohibitive equipment import costs through the establishment of a Wholly-Owned Foreign Enterprise (WOFE) and lead the client’s acquisition of a Hong Kong-based holding company with ownership of a China-licensed WOFE.

Solution: The project resulted in the client’s successful market entry into China and follow on strategic consulting and Business Incubation engagements with Tractus in Thailand, Indonesia and Myanmar. By 2014 the company had processed 100 million units with its machines exceeding its timeline goals by 20%.

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