Executives from IMS Gear Taicang visit Donglin village to explore opportunities in agricultural machinery. [Photo/WeChat account: tcfbgw]

When German gear technology company IMS Gear began exploring investment opportunities in China in 2009, Taicang stood out for its growing concentration of German businesses and emerging automotive components industry. The company eventually chose the city, citing smooth communication with the local government and well-developed tax and financial services.

"The business environment is predictable, making it much easier for us to plan ahead," said CEO Zoltan Nemeth.

IMS Gear supplies precision gear components for automotive systems such as electric seats and powered tailgates. After 17 years in China, some of its products hold nearly 50 percent of the Chinese market, and the company's annual sales exceeded 1 billion yuan ($149.94 million) for the first time in 2023.

As its automotive business matured, IMS Gear began exploring new markets, including agricultural machinery, aerospace, medical equipment and artificial intelligence.

Agricultural modernization was among the first opportunities it pursued. As demand grows for precision farming and more efficient machinery, IMS Gear visited Donglin village in Chengxiang town, Taicang, with support from the local government, to investigate the needs of agricultural equipment manufacturers.

The company identified reliability as a key challenge for agricultural machinery. With the government connecting it with local businesses, IMS Gear began collaborating on complete agricultural machinery and continuously upgrading its dedicated gearbox production line to improve the precision, stability and durability of transmission components.

Talent development has been another priority. As the company expanded, it struggled to recruit enough qualified technicians and turned to Germany's dual vocational training model. In 2017, IMS Gear partnered with Suzhou Chien-Shiung Institute of Technology and the German Chamber of Commerce Abroad (AHK) to launch a three-year apprenticeship program for vocational college students.

The program allocates 40 percent of time to classroom instruction and 60 percent to practical training. In their second year, apprentices form teams of two or three and take on projects within the company, gaining experience across the entire process, from product design and quotations to manufacturing, business negotiations and project delivery.

By the end of June 2026, IMS Gear had invested nearly 30 million yuan in the program. The apprentice retention rate reached 84.6 percent, all participants passed the AHK vocational qualification certification, and annual frontline technician turnover fell from 30 percent to below 3 percent.