A compressor equipment manufacturer with a base in Worcestershire has opened a new subsidiary in China to cash in on the lucrative Asian market.

The addition of Beko Technologies Dalian Co Ltd has brought the tally of Beko Technologies GmbH's international branches to seven.

In addition, its British operation in Bromsgrove has been operating for more than a decade.

The opening of the Chinese subsidiary is the culmination of an international operation that began seven years ago, said Mike Argent, spokesman for the Buntsford Park Road firm.

It has been launched in the Dalian Economic & Technical Development Zone in the province of Liaoning in the north-east of the country.

The area, bordering the Yellow Sea, has already drawn investment from scores of foreign companies.

"In May 1996, a delegation from the Dalian New Development Zone visited Germany with the objective of attracting companies to invest in China," Mr Argent added.

"A few months later, first contacts were made by Beko's German operation with the Leader Co Ltd, a company owned by Dong Pengju.

"Since that initial contact, Leader has been selling Beko products into the Chinese market.

"In just two years, and with considerable dedication, Mr Pengju has set up the basic structure for nationwide marketing network throughout the various Chinese provinces."

He said the rapid and ongoing development of the market meant that, in 1999, Leader Co's technical and manpower capacity had reached its limits.

Leader Co and Beko then opened talks to improve their partnership.

"The result is the new Beko Technologies Dalian Co Ltd, the first high-tech company to be situated in the free-trade zone in Dalian," Mr Argent said.

"All the employees of Leader Co who possessed important country-specific knowledge have been transferred to the new Beko."

Beko supplies accessories for compressed air equipment - including drain taps, air filters, oil and water separators, compressed air dryers and advice on water disposal.