Ernst Thalmann (center), Executive President of Yantai Andre Pectin

The city of Yantai in east China's Shandong Province has long been famed in history for its extensive coastline, its breathtaking scenery and its abundance of fruit. Being one of the first ports to open up to Europeans during the 19th century, the city is no stranger to progression, especially in terms of economics.

The apples that hang from the many orchards surrounding Yantai has given growth to one of the most lucrative fruit processing businesses in China. Yantai North Andre Juice Co. Ltd., and its production of pectin, a gelling agent made from apples that is vital to all aspects of food production, has seen unparalleled success and is seen as a major new contributor to the economic growth of Yantai.  According to the Statistics Bureau of Yantai, the city's fruit growing area has reached 149,053 hectares, with an output exceeding 4.56 million tons so far this year.

The Andre group, founded in 1996, has invested 20 million yuan ($3.13 million) in a state-of-the-art research and development center in Yantai, which includes first-class technology and modern testing and laboratory equipment. Undertaking the quality controls, processing technology, and new products development, the R&D center has successfully developed several juice processing technologies. In total, the Andre group has 14 juice concentrate processing lines with designed annual fruit products of more than 2 million tons, the annual juice concentrate production of 300,000 tons, and two lines with an annual pectin production of 4,000 tons.

Striking a balance

Ernst Thalmann, Executive President of Yantai Andre Pectin, said his company strives to build bridges between the differences of Chinese and European work ethics.

"Sometimes I have the impression that I now have more of a Chinese mentality than a European one," said Thalmann, who, born and raised in Switzerland, had been general manager of a pectin production company for eight years. He first came to China in the early 1980s, he recalled. "What is a perfect blend between Chinese and European mentality when it comes to business is that the Chinese like to go ahead with things, and Europeans like to calculate." Thalmann said his company tries to combine these approaches to achieve a balance.

The company now employs over 300 people at its Yantai base. Technicians work in a four-shift pattern, 24 hours a day, seven days a week. Due to Yantai's abundance in apple pomace, the raw material from which pectin is extracted, the company will continue to use the city as its China headquarters, despite its plans for nationwide expansion.

"Our view is to keep Yantai as our headquarters. In about two-three years, we will build up other pectin factories in other locations in China. For example we have one project in Sichuan where we also want to produce pectin long term, but this is just a semi-finished product that we will refine in Yantai. So long term, Yantai will be where we add final value for our products and is the place where we will invite our customers," said Thalmann, emphasizing the city's importance in the company's growth.

Major exporter

Andre Pectin now exports more than 90 percent of its products across the world, to countries in North America, Europe, Oceania and a growing market in Africa.

Thalmann has very clear views on the growing power of Sino-African trade relations. He said he often hears negative feedback from people in Europe on this topic, such as "half of Africa belongs to China" and "soon, you will need to speak Chinese when you go to Africa."

"On the other hand, I can also see that this is the first time that some countries in Africa have seen an investor who is there for the long term. Up to now, the former colonial powers just came to earn, but now with the Chinese I feel that this is changing as they are creating infrastructure for several African countries," said Thalmann.

Despite the fact that Yantai's electronics and automobile production industry has aided the city's economic development, it seems that its famous golden apples are proving a vital ingredient to the city's success.