GLOBAL ELECTRONICS FIRM ESTABLISHES SCANDINAVIAN HEADQUARTERS IN DENMARK

Why Denmark?
"For ZyXEL,  Denmark is the ideal gateway to the European market. The country's location and distribution system make it the obvious choice within Scandinavia, but it's also very attractive as a platform for reaching Europe as a whole. Through our Danish operation, we're getting fast and cost-effective distribution throughout much of Europe. We're also very pleased with the initiative and versatility of our Danish colleagues. In all, if you look at quality and effectiveness per unit cost, Denmark is an excellent location for a Nordic or European base."

Shin-Jou Fang, President,
ZyXEL Communications Corp.

ZyXEL Communications Corp.
ZyXEL Communications is a leading global supplier of high-performance communications equipment, including routers, high-speed terminal adapters and modems. The company also specializes in the design, implementation and maintenance of complete networking solutions. Established in Taiwan in 1989, ZyXEL has earned international acclaim as one of the most innovative companies in the communications industry. One reason is the firm's ongoing focus on developing its core technologies: 25% of its employees are engaged in R&D work, and 10% of revenues are re-invested in new product development. ZyXEL is represented in more than 70 countries and has a worldwide staff of 450 people.

Marketing, Sales and Market-Based Customization out of Denmark
ZyXEL's Danish subsidiary and Scandinavian headquarters, ZyXEL Communications A/S, is the company's principal corporate representative in Europe. In addition to functioning as a distribution hub and administrative center, the company markets and sells ZyXEL products in the Nordic countries and throughout much of Eastern and Southern Europe. ZyXEL A/S also customizes the company's products to match European tastes and market trends.

Since it's establishment in 1998, ZyXEL Communications A/S has undergone dramatic growth. The company currently employs around 20 people and is forming its own sales subsidiaries in Scandinavia. In addition, the Danish company expanded its territory to cover  Holland when ZyXEL discontinued its distribution out of that country in 1999.

One of Europe's Strongest Distribution Points
When it comes to choosing a site for distribution in Europe, and especially in Scandinavia, Denmark is an absolute top contender. The country has invested billions of dollars in its airports, highways, rail systems and port facilities in recent years, bringing an already-strong infrastructure up to world-class standards. At the same time, Denmark has an extremely competitive transportation industry and boasts the shortest lead times in Europe. In particular, Copenhagen Airport combines the shortest transit times with the lowest distribution and transport costs of any European airport.

These are just a few of the reasons why Denmark consistently rates among the top two distribution sites in the world (source: World Competitiveness Yearbook). In this light, it's not surprising that ZyXEL decided to reduce the costs and increase the efficiency of its European distribution by moving its Dutch activities to Denmark in 1999.

A Bureaucracy-Free Zone
Another attractive feature of Denmark is the country's straightforward approach to the business community. According to ZyXEL, the Danish customs authorities demonstrate an attitude of efficiency and cooperation, especially in dealing with non-EU goods. This is backed up by a report by Transparency International – an agency that monitors the efficiency of governments across the globe – which rated the Danish government as one of the least bureaucratic in the world.

The Premier European Gateway
Market analysts have long been aware of the fact that industry trends tend to start in the US and spread to Europe through the northern countries. This seems to be particularly true within the technical sectors. For this reason, many of the world's leading IT/high-tech/electronics companies chose to establish a presence in Denmark. Sweden and Norway, like Denmark,  are respected for the quality of their work force and their high educational standards. However, they simply can't compete with Denmark – as a prime distribution location, and as the premier gateway to Europe.