Going Global Going in Going up
CHINT "Globalization" Forms its Own Powerful Rhythm
By Sammi and Tina
“Globalization” of CHINT has developed for over 20 years since the first export order was obtained at China Import and Export Fair (Canton Fair) in the 1990s. In 2014, on the occasion of CHINT Group’s 30th anniversary,Chairman NAN Cunhui expressed publicly that CHINT would boost the 3 development strategies of globalization, M&A (merger and acquisition) and integration, and intelligent manufacturing, especially the globalization strategy, focus on the goal of “ creating the world-famous brand, and realizing the dream of powerful industrial country” in the next decade.
In recent years, CHINT has accelerated the overseas market expansion, promoted the international capacity cooperation, output the green and advanced capacity continuously, integrated into the global supply system better, and formed the fate community with partners through the deep cooperation with countries and markets along the Belt and Road (namely, the “New Silk Road Economic Belt” and “21st Century Maritime Silk Road”) and by “going global, going in, going up”.
“Going global” for market expansion
Over the years, CHINT has joined hands with global business partners to actively implement the brand strategy, focus on building “CHINT” and “NOARK”, two self-owned brands, make more efforts in overseas market expansion, “go global” with the global marketing system, increase the market share steadily, and improve the division of value chain and the status in the world continuously. CHINT has set up 3 global R&D centers in North America, Europe, and Asia-Pacific, 5 international marketing&sales areas, 14 international subsidiaries, 22 international logistics centers, and its products and services have covered more than 130 countries and regions.
Meanwhile, it has innovated the business model continuously to “go global” by investing in EPC and selling services. Along with enterprise development, CHINT has been upgraded from product output to service output, investment and M&A, actively made the overseas layout, and enhanced the global competitiveness. Transforming from pure “selling products” to EPC “turnkey” project, operation of power station, collection of electricity charges, and other “selling service” model, CHINT New Energy has completed and operated over 200 grid-connected ground photovoltaic power stations in the world. CHINT Power Transmission and Distribution has contracted to build hundreds of substations and transmission lines in over 20 countries, such as Pakistan, Tanzania, Kenya and Zambia, and driven the exportation of industrial chain products through EPC projects. Besides, the control system of CHINT Xinhua adopts the way of combining the domestic EPC general contractor with the overseas project agent, which has driven the products exportation.
“Going in” for win-win development
While “going global”, CHINT also emphasizes “going in” to combine the development needs of global business partners, explore the proper business models and management modes, and establish the long-term cooperation mechanism for “localization”.
In Spain, CHINT has developed and produced the high performance graphene battery in the form of joint venture with local well-known graphene company, and mastered the disruptive technology and application initiative of mobile energy storage battery; In Germany, CHINT has purchased the local component factory of the largest photovoltaic enterprise in Frankfurt (Oder), which becomes the largest photovoltaic component factory in East Germany;In Thailand, CHINT solar factory with a planned annual capacity of 600MW has been officially put into production; In Iran, CHINT has set up the assembly factory of power transmission and transformation equipment GIS;In Egypt, CHINT low voltage switchgear joint-venture factory has been officially opened, becoming CHINT’s first regional factory inAfrica; In Cambodia, CHINT has invested USD 505 million jointly with state-owned enterprises in completing Cambodian Tatay Hydroelectric Station BOT Project; In South Korea, CHINT has become the distributor of local well-known solar energy products and developer of power stations, participated in completing power stations with total capacity of over 100MW, of which, Jeju Island 9MW Photovoltaic Project in Chuncheon, Gangwondo has become the local landmark.
In the process of “going in”, CHINT particularly emphasizes the deep strategic connection and value sharing with global business partners, and lays stress on local talent training and value integration. “Localization” is becoming the key word for CHINT to further expand the global market.
Not only that, CHINT also strengthens the cooperation with domestic and foreign financial organs, combines financial advantages, increases resources integration, and enhances the international competitiveness further. At present, CHINT has established strategic cooperation with China Development Bank, Export-Import Bank of China, ICBC, IFC, Bank of America, Bank of Thailand, and Standard Bank of South Africa both at home and abroad. In March 2015, the “Green Silk Road Fund” was initiated by CHINT and it will devote to the ecological improvement of Silk Road Economic Belt and development of photovoltaic energy, tackling climate changes and developing the green economy. In April 2015, Zhejiang United Investment Group initiated by CHINT and other leading enterprises was officially put into operation, and it focuses on and actively participates in investment and M&A of major energy projects, including the Belt and Road. Lately, the Sino-Central and Eastern Europe Fund participated by CHINT is expected to reach 10billion Euro in scale, and will promote the capacity cooperation of Central and Eastern Europe with financial services.
“Going up” for value promotion
For CHINT, “globalization” is not merely a one-way “going global or going in” but a cycle strategy of “going global, going in” and “going up”.
Through overseas M&A or investment, CHINT has mastered the advanced technologies of some emerging industries, improved the intelligent manufacturing level, and promoted its own power and new energy industry chain simultaneously.
For instance, by investing in the well-known graphene company in Spain, CHINT has mastered the core R&D technology of graphene energy storage products. As the strategic emerging industry, energy storage technology is the key technology to break the bottleneck of large-scale development and utilization of new energy, as well as the important component of smart grid. This has accelerated the layout of CHINT in distributed photovoltaic power generation, smart microgrid, graphene energy storage technology, and energy management.
By acquisition of the full automatic photovoltaic component factory in Germany, CHINT has realized the connection with Germany Industry 4.0, obtained the highly automatic production line, advanced laboratory test equipment, and operation experience. By referring to the advanced automation equipment and operation experience of Germany, CHINT has laid a solid foundation for China’s technological transformation and building smart factories. In Hangzhou, the smart factory representing the highest manufacturing level in the industry has been completed by CHINT, and it has the most intelligent elements required by Germany Industry 4.0. It is listed as the “Sino-Germany Intelligent Manufacturing Cooperation Pilot Demonstration Project” by the Ministry of Industry and Information Technology of the People’s Republic of China. It is also one of the official visiting spots designated by G20 Hangzhou Summit. Based on this, CHINT Thailand Factory has learned the advanced manufacturing experience of CHINT factories in Germany and Hangzhou, become the pioneer and explorer of the “intelligent manufacturing” in the industry, driven the development of relevant upstream and downstream industries, increased local tax revenues, and created more jobs.
“I expect CHINT to take a road to mutual benefits with overseas partners during promotion of ‘globalization’ strategy, take active actions in innovation of business models, element agglomeration, resources integration, and value sharing, and create the new pattern of win-win cooperation under the new situation.” Nan Cunhui said, CHINT is ready for a new round of breakthroughs in globalization development , and it will join hands with global business partners to carry out the larger, higher, and deeper “going global, going in, and going up”.