With more than 96% of its1.8 billion Euros in sales based in the domestic market, China’s Shenyang Machine Tool Group has realised it needs international customers, and the jump-off point is Europe.

China’s Shenyang Machine Tool Group said it will boost its exports by using Europe as a “launch pad for penetrating the world markets”.

Noting that Europe is the world’s most challenging machine tool market, the world’s largest machine tool builder said it will develop advanced machinery at its Schiess Tech unit in Berlin Germany with products comprising base machines built in China and custom components from Germany.

Speaking at the EMO metalworking show in Hanover, Germany, Schiess Tech CEO Marcus Otto said, “The European market is the centre for the machine tool industry. This is why we have selected Europe, and this is why we have selected Germany.”

The company’s German operations play a key role in the strategy. While Berlin will be the development centre, back up service will be based in Frankfurt and Aschersleben, a city which will also house central spare parts storage. In addition, Otto said the company has invested more than 30 million Euros in cutting technology at the site, where machines targeted at the world markets will be built.

Otto also touted the speed with which the company can develop new products, noting it only took three-and-a-half months from design to prototype for its new Viva Turn 4 slant-bed turning centre. The unit, priced at 55,900 Euros, will be delivery-ready at the beginning of next year and is part of a complete line of centres to be available for sale by mid-September 2014, Otto said.