Global value chains, digitalization and Industry 4.0, automation and efficiency increases, sustainability, product safety, high quality standards – these are the defining buzzwords in industrial production in Germany as a business location. At the same time, domestic industrial production, as the backbone of the German export economy, is facing new challenges in international competition, because the manufacturing industry, more than almost any other sector in Germany, is dependent on global supply chains and on foreign investment in plant and equipment.
High adaptability to customers’ cyclical investment behavior, rapid response to changes in key sales markets, risk management in the event of supply bottlenecks, and a focus on premium segments as well as complex logistics are some of the key requirements that the Industrial Production sector is constantly confronted with. Added to this are issues such as new, disruptive technologies, increasingly stringent sustainability targets, intense global competition and constantly changing regulatory frameworks. All of this leads to complex legal issues, which we at KPMG Law know how to answer with our multidisciplinary advisory approach in an agile manner and tailored to the needs of companies and clients.
Digitization and IP protection are playing an increasingly important role for modern industrial companies. We support you with customized legal structuring of R&D activities and advise you on issues of data protection and cybersecurity in the digitalization of industrial production, IP protection and measures against unauthorized copying and IP infringement, IT contracts, licensing agreements and modern distribution channels using technology in both the B2B and B2C sectors.
Companies in the manufacturing industry are confronted with numerous corporate law issues when they establish companies, restructure for the purpose of increasing efficiency, segmentation or centralization, outsource project business for liability reasons, buy or sell companies or parts of companies or assets, or cooperate with third parties in joint ventures and manage their internal structures. Our multidisciplinary team of corporate, M&A, deal advisory and antitrust lawyers will advise you on all legal issues related to these activities.
In the manufacturing industry, numerous legal issues arise around the entire value chain, from purchasing to R&D and production to distribution. We advise you efficiently and tailored to your company on regulatory issues as well as on the legal design of contracts of all kinds in purchasing and sales, on issues of product safety and product compliance – including recall – and on financing and insurance issues. We support you in cooperation with third parties (joint ventures, R&D, licensing agreements), IP protection, and cybersecurity and digitalization issues (IT law and data protection). Our consulting spectrum also extends to the management of contractual relationships along the value chain (contract management paired with LegalTech) as well as issues related to the setup of the legal department.
Modern production requires modern machinery and equipment. We assist companies in the manufacturing industry with acquisitions, maintenance contracts, warranty rights, production downtime and with regard to product safety and product compliance. Furthermore, we accompany companies in the plant engineering sector in their project business. Our range of advice extends from tendering, contractual drafting and contractual risk management, including all legal issues relating to joint ventures, financing, insurance and corporate law set-up, to claim management during the construction phase and dispute avoidance and resolution.
Global supply chains play a prominent role for the manufacturing industry and require proactive legal supply chain management to ensure regulatory compliance and economic efficiency. We support manufacturing companies in supply chain compliance and the contractual implementation of legal supply chain management. In addition to compliance with supply chain due diligence laws, such a management system also includes consideration of imposed sanctions and embargoes, as well as other elements of supply chain compliance including sustainability aspects, such as the creation of supplier codes of conduct and supplier audits.
Supply bottlenecks in global markets pose a significant risk to ongoing production as well as the sales opportunities of manufacturing companies in times of scarce resources, logistical barriers and supply restrictions. The effects on compliance with contracts with customers can be serious. At KPMG Law, we provide tailored advice on contractual mechanisms including delivery obligations, self-delivery reservations, contractual penalties and damages, as well as on dealing with acute bottlenecks and production shortages. We also guide you in diversifying your supplier pool using legal tools, contract amendments and contract renegotiations, proactively managing force majeure situations including legal strategies to distribute scarce goods among multiple eligible customers, and dispute avoidance and resolution in litigation and international arbitration.
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