Glaston shores up China market
SHANGHAI: If given a second chance, Pekka Nieminen would have certainly pushed his company to pursue the China market much earlier.
As the vice-president in charge of sales and services in North Asia at glass processing technology provider Glaston, Nieminen is now helping his company build a solid position in China which is crowded with big and small competitors.
The Finnish said: "If I look back and could make decisions again, we would come earlier. We didn't realize how fast the industry is growing in China until we were here." But now, gaining much insight in China, the company has decided to put in more investment and take more active steps.
Based in Finland, Glaston Corporation is the world's leading supplier of glass processing machines and one-stop solutions for glass processors with a wide-ranging product line and service network in the industry.
Its well-known brands include the pre-processing machine and tools supplier Bavelloni and the safety glass machine suppliers Tamglass and Uniglass. Its eventful history dates back more than 135 years, and the company was listed on the Helsinki Stock Exchange in 1997.
The company has operations in all major markets including Asia, Europe, North and South America, Australia and the Middle East. Employing more than 1,400 staff globally, it has customer service offices in more than 20 countries.
It reported 123.7 million euros ($167 million) in net sales revenue between January and June, a year-on-year increase of 25.6 percent.
"We have to be among top ones in the industry when we go overseas because there is no possibility to be successful given a small domestic market," Nieminen said. "It's typical for Finnish companies because we are a small nation with only 5 million people."
In China, Glaston opened a sales and service office in Hong Kong as early as 1980s before the company shut it down and opened one in Shanghai in 2004, which owns a subsidiary in Guangdong Province.
The company is the only foreign firm in the glass processing industry to have a manufacturing site in China - which is located in Tianjin, providing products for countries in North Asia.
"I am happy with our situation now. We are building a stronger organization here in China," Nieminen said.
Proud of its advanced technology and bountiful history, the company has seen its technology applied in a number of famous buildings such as Shanghai Pudong Airport, Shanghai World Financial Center, the new CCTV tower and the second airport to be built in Beijing.
It is also cooperating with one of the nation's largest automobile glass makers, Xinyi Glass Holdings Ltd, to provide advanced processing technology of high-quality glass to car makers.
But its sophistication in technology innovation doesn't guarantee easy success in China due to stiff competition from two to three major Chinese players in the industry, in addition to a long list of smaller domestic competitors, as well as Italian and German operations.
"It's easier for the Chinese players to approach customers here in China. As foreigners we do not know the customers and market as we should know. But we have strong brands and advantage in technology," Nieminen insisted. "When it comes to capacity, reliability, delivery time, customers may think we are more reliable," he said, adding that quality services and a strong sales team will also help Glaston grow in China.
(China Daily 12/06/2007 page22)
