SCHAAN, Liechtenstein/SHANGHAI, China: Global market conditions are changing rapidly. Trade barriers, geopolitical instability and broader supply chain disruptions are posing new challenges for companies around the world. The Ivoclar Group, headquartered in Liechtenstein, is responding to these developments with its Local4Local initiative, which aims to build resilience and support more sustainable growth by increasing market proximity. The planned opening of a new production site in Shanghai demonstrates how the company is putting this approach into practice.
Ivoclar has been implementing its Local4Local strategy since 2023. “Our aim is to bring production closer to the markets we serve. Through this approach, we can strengthen our supply chain resilience and flexibility while enhancing our customer proximity. Local production also makes it easier to meet regional requirements and regulatory standards,” said Stefan Riegler, chief production officer of the Ivoclar Group.
Local production also offers operational, logistical and economic advantages. Shorter transport routes and greater regional value creation can help streamline processes and support more efficient resource use, reflecting Ivoclar’s aim to integrate economic, environmental and logistical priorities in a responsible way.
Strengthening logistics and production
A key logistics component of the Local4Local initiative is the company’s global distribution centre in Ellwangen in Germany, which began operating in 2021. Further investments have followed. In 2023, Ivoclar opened a new logistics site in Leicester in the UK, followed in 2024 by a new warehouse with an integrated customer care and repair centre in São Paulo in Brazil. The company is currently converting its US distribution centre in Amherst in New York into an automated warehouse.
In addition to logistics, Ivoclar said that it is advancing major initiatives in production. In addition to its Schaan production site, the company’s production network spans four other sites: Bürs in Austria, Manila in the Philippines, Naturns in Italy and Somerset in New Jersey in the US. Ivoclar now plans to open a site in Shanghai too. A letter of intent to this effect was signed at Xinzhuang Industrial Park in April.
This approach allows Ivoclar to combine global market proximity with international production and quality standards. Coordinated processes, defined material and manufacturing requirements, and an integrated international production and logistics network are intended to ensure that customers around the world receive consistent product quality.
“Through our new site, we are creating additional capacity to support further growth and serve our customers in China even more effectively and efficiently. At the same time, we are strengthening our global production network and increasing our flexibility across the entire value chain,” Riegler commented.
Representatives of the Ivoclar Group and senior officials from the Minhang district at the signing of the letter of intent. (Image: Ivoclar)
Minhang selected as a strategic location
The Minhang district, near Shanghai, has been selected as the site for the new facility because it offers favourable conditions for the project. The region is an established hub for industry and innovation and is home to numerous international companies, including firms from Switzerland and Liechtenstein. The availability of infrastructure, access to a skilled workforce and proximity to partners and customers further support the choice of location.
Production is scheduled to begin in 2028, and Ivoclar said that it is continuing to implement its Local4Local strategy and strengthen its presence in the Asian markets. The move is expected to help shorten delivery routes and streamline processes, thereby enabling Ivoclar to serve regional customers more efficiently.
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