MartinLogan plugs into China

Lawrence firm passes inspection, set to grow

The crisp sound of $20,000 sets of MartinLogan Ltd. audio speakers soon could be moving from a production floor in southeast Lawrence to stores in the world’s fastest-growing economy.

Production processes and administrative operations at MartinLogan’s four-building complex near 20th and Delaware streets cleared a review last week from two inspectors with the China Qualification Inspection Agency.

The inspectors interviewed workers, checked parts, observed manufacturing processes and verified paperwork before agreeing to clear audio components made in Lawrence for sale in China.

MartinLogan started selling some entry-level products in China last year. Such sales of its MartinLogan Design line of products, which start at $600 and are made in China, amounted to $200,000 in 2005, or less than 1 percent of the company’s $24 million total.

Last week’s visit opens even more opportunity, now that the inspectors have cleared all MartinLogan products for sale in China. Of particular interest are the company’s ESL products: speakers that sell for up to $20,000 and other high-end components that long have been popular among dedicated audiophiles, design-savvy professionals and status-conscious celebrities.

Soon consumers in the world’s most populous nation will be able to buy speakers whose chrome finish alone can run $7,000.

Shi Jun-Wei, manager/auditor for the China Qualification Certification Center, examines a Descent subwoofer at MartinLogan Ltd. in Lawrence. He and Qi Shuang, representative director, right, visited MartinLogan's operations last week in Lawrence, ultimately clearing audio products made at the plant - including the ,800 subwoofer - for sale in China. At right is Joe Bruscato, quality engineer for MartinLogan.

“This will allow us to sell our higher-end, Lawrence-made products over there,” said Rafael Nevares, MartinLogan president. “Right now we’re spending a tremendous amount of money to do this. It’s a small market for us, but five years from now, it could be a market that’s as much as 10 percent of our business, and it will continue to grow. :

“There’s a lot of wealth there, too. People are under the impression that, ‘Oh, well, they can’t afford that over there.’ Are you kidding me? I’ve been there many a time, and there’s a whole lot more concentration of Mercedes and BMWs in China than there is in Kansas City, I can guarantee you that.”

Plans to expand

Expanding markets and rising sales has MartinLogan Ltd. looking for an additional 10,000 square feet to 12,000 square feet of space in Lawrence, said Rafael Nevares, company president.
The company currently occupies 43,000 square feet in town, most of it in four buildings near 20th and Delaware streets.

One of the inspectors who made the trip to Lawrence was Qi Shuang, the certification center’s representative director who already has certified 200 manufacturing operations in Korea, including those for LG, Samsung and Hyundai. MartinLogan was his first in Kansas.

Nevares enjoyed trading stories with the inspectors over dinner at Pachamama’s, knowing that his company’s certification would put the Lawrence business ahead of other operations as China’s economic power continues to grow.

“Two years from now, when everybody wakes up, we’ll already be there,” said Nevares, who learned Friday that his company was a finalist for Kansas Exporter of the Year. “You could have major companies that are just on the waiting list for years, and MartinLogan’s already invested now, got through the pain now, and we’re good to go.”