BRICS–States–Boom Challenges the International Valves and Fittings Industry

Related Vendors

TURCK GmbH

TRM Filter d.o.o.

Angst+Pfister AG

Messe Düsseldorf Asia Pte. Ltd.

Messe Düsseldorf GmbH

“The Best Way to Enter the Chinese Market is to Use Local Expertise”

Agreeing on the advantages of setting up shop in other countries CEO, Flowrox Group, Heikki Hyttinen states, “China is an enormous and a rapidly growing market and to be able to serve the customers with the same high standards as we do in Europe, we see it essential to be locally present with an office of our own. The best way to enter the Chinese market is to make use of local expertise.”

Understanding the Culture of Foreign Markets

Bomafa has also come to grips with the market’s peculiarities. “Networking relations are of high importance in China and India,” states Appelberg. “It is nigh impossible to establish oneself as a foreign company without local partners who know cultural practices and customs, and in order to protect the technology of our control valves, we created a 100 per cent owned subsidiary,” he asserts. In addition, the company also teamed up with a Chinese partner and created a joint venture to produce standardized components.

Speaking on taking advantage of the BRICS market, Appelberg adds, “We are also thinking about setting up a joint venture in India. Up to now we have been cooperating with a local sales agent and have gained market entry with the leading energy companies.”

Brazil: Lucrative Oil Opportunities

Brazil is a promising market for valve makers thanks to oil exploration and production. The South American emerging market however has to overcome several obstacles. One of these is that a great portion of the country’s resources slumber in great depths beneath the ocean, requiring tried and proven technology with a high level of quality. Here, Brazil wants to invest over $220 billion by 2014.

Brazil’s boom cannot be sustained without the help of high tech coming from industrialized nations.

The prosperous city Macaé in the state of Rio de Janeiro is looking for partners for deep sea production. SchuF Fetterolf has discovered Brazil‘s offshore market. “In order to better serve the market, the company has decided to set up a second production facility in Brazil,” states CEO, SchuF Fetterolf, Roderick Stanley. The facility is located in proximity to the offshore oil fields northeast of Brazil. “A lot of customers expect local support from manufacturers.”

(ID:42480314)