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Germany's largest and one of the world's top four retailers, METRO AG, has set up its global sourcing headquarters (HQ) in Hong Kong, covering all markets outside the European Union.

According to Member of the Management Board of METRO AG, Mr Stefan Feuerstein, Hong Kong offers ideal conditions with its long tradition as a trading and import location and its excellent strategic position at the centre of the important East Asian procurement markets.

The Associate Director-General of Investment Promotion at Invest Hong Kong, Mr Simon Galpin, met with Mr Feuerstein today (September 30) to welcome METRO's establishment of its sourcing HQ in Hong Kong.

METRO's Hong Kong operation, Gemex Trading Ltd, was integrated into the Group and will sign under the name of MGB METRO Group Buying Hong Kong Ltd from November 1, 2003. As METRO AG's sourcing HQ, the new company will be responsible for all buying activities from Asia and non-EU countries.

Mr Feuerstein said, "The Hong Kong office will further expand its important position as the interface of METRO's imports. Hong Kong is where the Centre of Competence for the imports of the METRO sales divisions from Asia and non-EU countries will in future be domiciled with over 400 employees."

Mr Feuerstein added, "Moreover, regional offices have been set up in strategically important countries which report directly to the Hong Kong office. Worldwide, MGB Hong Kong has around 550 employees. In the next few years, it will in particular focus on the further expansion of the import of goods from non-EU countries."

Mr Galpin told Mr Feuerstein that METRO's investment reinforces Hong Kong's position as the trading and sourcing capital of Asia. Mr Galpin said, "Our excellent business infrastructure and convenient location enables overseas companies to coordinate their buying activities not only from China and Asia, but also from other parts of the world. Proximity to manufacturing bases in the Mainland is also an asset."

Mr Galpin added, "Hong Kong is an ideal location for trading, sourcing and distribution with its free port and sophisticated financial, legal, insurance and telecommunication sectors. We also have a highly-trained workforce specialising in consumer product sales and sourcing, and well-versed in international trade.

"In fact, about 20 per cent of Hong Kong's workforce is engaged in trading, sourcing and distribution."

METRO AG is a trading and retailing group with more than 2,300 locations in 27 countries. It employs more than 235,000 people and generated sales of almost EUR52 billion in 2002, of which more than 46 per cent are from abroad.

End/Tuesday, September 30, 2003

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