"We have achieved our first milestone for the first two months," said Buchinger, referring to the fact that 30 per cent of its 20,000 square metre capacity has been occupied since it first opened two months ago.

Prior to the launch of the logistics centre, the firm offered logistical services indirectly in China by using other third-party providers.

That percentage brings the firm close to profitability, since the break-even point will be reached when the warehouse reaches an occupancy rate of 40 to 45 per cent, Buchinger said.

According to him, the new centre will be close to its business forecast of an 80 per cent occupancy rate by the end of 2007.

M&M's major customers currently include automotive companies, high-tech firms and fast-moving consumer goods firms. Domestic companies make up 65 per cent of its customer base.

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