Chinese investors are a major force in helping their overseas businesses grow.(Photo/China Daily)
Vivid Cases
Real cases speak louder than words. The followings provide a glimpse into how Chinese investors have helped their overseas businesses get the 'houses in order'.
In January, China's leading heavy machinery manufacturer Sany Group announced its acquisition of Germany's largest concrete pump maker Putzmeister for $476 million.
"After the global financial crisis, the world saw a declining Europe and the U.S., and a developing China," said Norbert Scheuch, CEO of Putzmeister. "The landscape of the global engineering industry has experienced a dramatic change."
According to Scheuch, Putzmeister once inquired some European and U.S. engineering enterprises about whether they had any interest in acquiring the German pump maker. The feedbacks were either "a lack of capital" or having no interest to buy. The result was that, of all the eight bidders for Putzmeister, five came from China.
Sany Chairman Liang Wengeng promised that, after the merger and acquisition (M&A), Putzmeister would function as Sany's overseas headquarter of concrete operations and maintain a high level of independence. Sany would ensure Putzmeister's position as a high-end concrete pump manufacturer.
"There had once been 3,000 employees, but only 2,800 remained afterwards because of the business shrinking," said Putzmeister CEO Scheuch, pointing to a large, empty room in the Putzmeister's office building.
He said that, after the merger, Putzmeister's operations remained the same, and no employees were laid off.
"Perhaps, we will even hire more staff in the future," said Scheuch.
According to Lin Zuoming, president of the State-owned Aviation Industry Corporation of China (AVIC), the aviation conglomerate has acquired several foreign companies over the years. It follows the two following principles: 1) No layoff; 2) Helping those acquired companies to secure orders in the Chinese market.
"The biggest Australian aviation enterprise AVIC acquired has now turned around," said Lin. "AVIC not only didn't have any cut-backs, but add over 500 people to the payroll instead."
Chinese lighting giant NVC's fully owned UK subsidiary has received much support from its parent company in China while still operating as a UK company.
According to NVC UK director Gerry Pass, who has worked in the British lighting industry for 25 years before joining NVC UK in 2009, the Chinese parent company has invested heavily to help its UK subsidiary grow, but at the same time also allowed its British executives to make their own decisions.
He added that the salary and employee benefits that NVC UK offered are higher than those provided by many British companies.
"In these 10 years, Chinese overseas investors won and the world won," remarked Dr. Cui.♦
Li Zhenyu authors the "Golden Decade" column for People's Daily Online.
Residential building collapses in E China's Ningbo
Feedback
RSS
