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NETD: Corps expand overseas economic businesses
- Details
- Category: Ningbo News
- Published: Wednesday, 20 March 2013 09:55
Zhejiang Teams Economic & Technical Cooperation Co. Ltd was busying in dispatching a batch of power plant equipments to Ethiopia in these days. According to Ni Guoming, the general manager of the company, it signed two contracts with a sugar factory in Ethiopia, involving 52 million US dollars and 50 million US dollars respectively. And now it’s the very time to fulfill the first contract.
The fact that Zhejiang Teams Economic & Technical Cooperation Co. Ltd managed to score two of the three projects of the power plant construction projects demonstrated the company’s comprehensive strength and competitiveness. The company has long been focused on the export of complete set of equipment and overseas project contracting, thus has made huge profit and greatly improved its strength.
The main market is mainly in developing counties and regions in Africa and South Asia. Despite of the unsound economic and political situation and the high demands in the ability to avoid risks brought by the fluctuations of foreign exchange, the company has scored high profits from overseas project contracting. For instance, it has successfully undertaken the highway project (estimated more than 20 million US dollars) in Bangladesh, the mass transit system(with an investment sum of more than 40 million euros) in Syria, which included the production of 750 buses and the improvement of the operation system.
“International projects contracting market is the collaboration of service trade and goods trade”, said Liu Bangqin, an official from Ningbo Economic & Technical Development Bureau. More and more enterprises in NETD speed up their space of going global and made the International projects contracting as their first step of entering into international market. “Export of complete set of equipment promoted the export of goods, technologies and labors. Overseas project contracting has become another growing point for the open economy of NETD. In 2012, the turnover of overseas economic projects stood at 90.61 million US dollars”, added Liu.
As to the question that how did the company come up with the idea of doing overseas project contracting business, a worker surnamed Liu from Ningbo Sanding Pipe Engineering Co. Ltd blurted out that it had to go global. Such traditional industries as steel company has little profit margin in domestic market and add to ever-growing competitive stress, companies are forced to go global and seek larger markets. By lucky coincidence, foreign customers are in need of manufacturer of high productivity as well as high quality, thus, the two sides have sufficient opportunities to carry out cooperations.
Since 2005, Ningbo Sanding Pipe Engineering Co. Ltd has successively contracted projects in UAE, Australia and other countries, producing the pipes used for dock and bridges construction, the orders ranging from one hundred tons to over one thousand tons. The company spared no efforts on overseas contracting projects although it had gathered much experience through its many businesses inland. “Overseas access threshold and market demand bear a strong difference with the counterparts in China”, explained Liu, the worker. As a matter of fact, customers always entrusted international testing organizations to inspect the pipes one by one.
In addition, the exchange rate risk of international market, foreign countries’ political situation as well as cultural surroundings are all the concerns of the company. Yet, they believe that going global is the right way, and high quality is the foremost precondition to expand foreign markets.
