One Belt and One Road
PUdaily, Shanghai-It is reported that BorsodChem, a subsidiary of Wanhua, successfully made a profit of 20 million euros in Q1 of 2015. Wanhua succeeded in acquiring BC in 2011, being the best reorganized trading case in China evaluated by western mainstream media.
After initial period of integration, Wanhua now has reaped growing rewards and strengthened its influence in Central and Eastern Europe. Besides, Wanhua has already started constructing new industrial park in Hungary, guiding more Chinese enterprises to expand business territory in Europe.
Mr. Ding Jiansheng, President at Wanhua and Chairman of the Board of BC told, "I think One Belt and One Road is the most successful 'card' played by Chinese Government and this attracts more companies to enter into European market. "
From the Verge of Bankruptcy to Making Profits
Wanhua has been establishing its sales companies and administrative offices around the world about ten years ago. And during its internationalized developing process, BC M&A was almost the most difficult case. In 2008, BC had to sell its shareholdings, confronted with serious capital chain rupture and potential bankruptcywhich became an opportunity for Wanhua.
Mr. Ding revealed: " Manufacturing base construction is the only way to enter into European market and become leading supplier, so acquiring BC was a great opportunity for Wanhua.” Wanhua purchased 96% of shareholdings in 2011 from BC and became its actual controller after tough negotiation. Nevertheless, BC suffered an increasing loss after M&A until 2012, when Wanhua started providing capita, technical and management support and cultural integration, finally making profit of 20 million euros in Q1.
Cultural Integration via Chinese Dumpling
Talking about the initial period of integration, Mr. Ding conceded that former executive of BC was unfamiliar with Wanhua’s corporate culture and management mechanism, resulting in lots of cultural conflicts, which were resolved by necessary personnel adjustment. However, the most important and difficult integration is culture. Wanhua celebrates “Family Day” every year and Chinese dumpling and goulash also help to understand Chinese and Hungarian culture…
“Chinese culture is now becoming more and more popular among BC employees. Some of them, including high executives, are learning Chinese in local Confucius Institute, being a symbol of Wanhua cultural integration.” Mr. Ding added.
Industrial Park Construction along with One Belt and One Road
The success of Wanhua in Hungary provides precious experience for enterprises’ Going-out. Besides, Wanhua will play a bigger role in Europe along with One Belt and One Road.
As the largest Chinese enterprise in terms of investment scale in Central and Eastern Europe, Wanhua is building China-Hungary BC Trade Cooperation Zone based on BC existing industrial area. Under the guidance of China’s Ministry of Commerce, Wanhua, will turn China-Hungary BC Trade Cooperation Zone into processing & manufacturing base for Chinese enterprises in Europe, driving more domestic enterprises to expand business in Europe.
At the same time, Wanhua supports the University of Miskolc and Beijing University of Chemical Technology to co-establish Confucius Institute characterized by chemical engineering.
As an old brand chemical enterprise, BC was established in 1949 and located in old industrial area of Northeast Hungary, being the largest MDI and TDI manufacturer in Central and Eastern Europe. Its businesses reach far to Europe, Middle East and Africa.
As an EU member state, Hungary is the “bridge head” of Europe, playing an important role for Chinese enterprises to expand other market in Europe apart from Hungary.
One Belt and One Road, also known as the Belt and Road Initiative, is a Chinese framework for organizing multinational economic development through two component plans, the land-based Silk Road Economic Belt (SREB) and oceangoing Maritime Silk Road (MSR). The initiative was unveiled in October 2013.
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