TMF Group - Building bridges to china case studies

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  • "It took Japanese cars probably 25 years to reach a level where no-one doubted the quality," said Mr Holtheuer, of the firm Derco. "Korean cars, such as Kia and Hyundai, are doing an excellent job. It probably took them 15 years. We think China is going to take 10 years."
  • PM Group is a leading, global biopharma design and project management firm. We have a unique, in-depth understanding of the biopharmaceutical industry and a proven project execution model. We help our clients around the world  plan and execute state-of-the-art facilities resulting in faster time-to-market for products, and innovative cost effective facilities designed for future needs. Our capability spans vaccines, cell culture, microbial fermentation, blood fractionation, fill finish, packaging, chemical API manufacture, biopharma and chemical API  laboratories and pilot plants.  We have expertise in emerging technologies including disposables, continuous processing, operational excellence (lean/six sigma), PAT / QbD / PQLI, modular facilities and superskids.
  • PM Group’s is one of the top three companies in the world delivering complex food/nutritional/beverages facilities. We've built a unique team with the specialist expertise to deliver world-class engineering solutions. PM Group offers a ‘One-Stop-Shop’ and deliver integrated process solutions to industry-leading clients in areas ranging from traditional foods to the most sophisticated 'Pharma' food products. We offer specialist expertise in food, beverages and nutritional engineering, including infant nutritionals, wellness foods and performance nutritionals. We're currently delivering major projects across the globe for Abbott, Wyeth, GSK, Glanbia and Almarai, amongst other key players in this sector.
  • Scoping, designing, procuring, constructing and commissioning facilities for the Information, Communications and Technologies (ICT) sector requires an experienced and dedicated project team who are familiar with its complex and continuously evolving project needs.   Our experience covers semiconductors, electronics, computer manufacturing, telecom’s and flat panel display (LCD).  Time to market is the fundamental business driver in this highly competitive industry where process and facility technologies are leading edge. Our business is to deliver complex, high tech, schedule-driven projects using fast-track techniques. 
  • TMF Group - Building bridges to china case studies

    1. 1. Building Bridges to China1 28 September 2012 - Chester Beatty Library
    2. 2. Case Studies © 2012 Deloitte AP ICE Limited
    3. 3. Building Bridges to China Kraken YU, ( 余小晴 ) Director, Ireland HK Business Forum, Dublin Chamber of Commerce & CEO at Cornerstone (Research) International3 28 September 2012 - Chester Beatty Library
    4. 4. Building Bridges to Know Asian Markets, Grow Asian Markets China Know Asian Markets, Grow Asian Markets 爱尔兰 CHINA China: Country profile Culture Issues Case Study: Software Industry Do’s & Don’t4 28 September 2012 - Chester Beatty Library
    5. 5. Building Bridges to China Country Profile China China is the worlds most populous country, with a continuous culture stretching back nearly 4,000 years.5 28 September 2012 - Chester Beatty Library
    6. 6. Building Bridges to China – Country Profile China  Many of the elements that make up the foundation of the modern world originated in China, including paper, gunpowder, credit banking, the compass and paper money.  After stagnating for more than two decades under the rigid authoritarianism of early communist rule under its late leader, Chairman Mao, China now has the worlds fastest-growing economy and is undergoing what has been described as a second industrial revolution.  China is the world’s second largest economy. 66 28 September 2012 - Chester Beatty Library
    7. 7. Building Bridges to China – Country Profile China  The Peoples Republic of China (PRC) was founded in 1949 after the Communist Party defeated the previously nationalist Kuomintang in a civil war. The Kuomintang retreated to Taiwan, creating two rival Chinese states - the PRC on the mainland and the Republic of China based on Taiwan.  Beijing says the island of Taiwan is a part of Chinese territory that must be reunited with the mainland, by force if necessary. The claim has in the past led to tension and threats of invasion, but since 2008 the two governments have moved towards a more cooperative atmosphere.7 28 September 2012 - Chester Beatty Library
    8. 8. Building China Bridges to China Profile- Economy  Nowadays China is one of the worlds top exporters and is attracting record amounts of foreign investment. In turn, it is investing billions of dollars abroad.  As a member of the World Trade Organization, China benefits from access to foreign markets. In return it must expose itself to competition from abroad. But relations with trading partners have been strained over Chinas huge trade surplus and the piracy of goods; the former has led to demands for Beijing to raise the value of its currency, which would make Chinese goods more expensive for foreign buyers and, in theory, hold back exports.  Some Chinese fear that the rise of private enterprise and the demise of state-run industries carries heavy social costs such as unemployment and instability.  Moreover, the fast-growing economy has fuelled the demand for energy. China is the largest oil consumer after the US, and the worlds biggest producer and consumer of coal. It spends billions of dollars in pursuit of foreign energy supplies. There has been a massive investment in hydro-power, including the $25bn Three Gorges Dam project.8 28 September 2012 - Chester Beatty Library
    9. 9. Building China Bridges to China Profile Facts  Full name: Peoples Republic of China  Population: 1.34 billion (UN, 2009)  Capital: Beijing  Largest city: Shanghai  Area: 9.6 million sq km (3.7 million sq miles)  Major language: Mandarin Chinese  Major religions: Buddhism, Christianity, Islam, Taoism  Life expectancy: 71 years (men), 75 years (women) (UN)  Monetary unit: 1 Renminbi (yuan) (Y) = 10 jiao = 100 fen;  Main exports: Manufactured goods, including textiles, garments, electronics, arms  GNI per capita: US $2,940 (World Bank, 2008)  Internet domain: .cn  International dialling code: +869 28 September 2012 - Chester Beatty Library
    10. 10. Building China – International Stage Bridges to China Patriot  Beijing Huaqi Information Digital Technology Co. Ltd (aigo) is a high-tech company headquartered in Beijing dedicated to the development of Chinas national IT industry.  aigo is a leading manufacturer of electronic products for consumer and professional markets. Its products include MP3 players, many other newly developed products like MP4 players and MP5 players.  Huaqi recorded consolidated annual sales of approximately 2 billion RMB last year and includes more than 1,900 employees worldwide, over 700 of whom are professional and qualified R&D staff.  Huaqi uses the marketing platform of Vodafone McLaren Mercedes to develop aigos overseas market. aigo is Vodafone Mclaren Mercedes first Chinese partner.10 28 September 2012 - Chester Beatty Library
    11. 11. China’s Gateway to US & Europe Building Bridges to (EMEA) China 中国通向美国和欧洲 (EMEA) 的通路 1111 28 September 2012 - Chester Beatty Library
    12. 12. China – Ireland Cooperation Building Bridges to 中国与爱尔兰的合作 China  Software development;  First Accredited ECDL courseware in Chinese;  First Irish s/w company registered with the Copyriht Authority, Beijing, China;  First eLearning company in China aim at the Outsourcing market;  First company with training course mapped onto SFIA – EU ICT Skills framework;  Cloud based eAssessment engine in Semantic eLearning platform;  Saas / PaaS;  Business member of ISIN – Irish Software Innovation Network by ISA, IBEC, EI  Technology partner – Ireland (DERI-NUIG, DIT), France, HKSAR, China.  Based in NovaUCD, UCD, Belfield, Dublin12 28 September 2012 - Chester Beatty Library
    13. 13. China – Ireland Cooperation Building Bridges to 中国与爱尔兰的合作 China Agreements signed during Trade mission to China, 2005. 2005 在贸易代表团到中国期间签署的协议。 – Neusoft - 东软 – ATA Testing -ATA 测试 – Linkage - 联创13 28 September 2012 - Chester Beatty Library
    14. 14. China – Ireland Cooperation Building Bridges to 中国与爱尔兰的合作 China14 28 September 2012 - Chester Beatty Library
    15. 15. Building Bridges to Advantages of Ireland China  English speaking country (mother tongue)  Advanced infrastructure and education  World center of excellence for software localisation – Non-English localisation and sales by native speakers (10% of workforce is non-Irish with 25+ major languages)  Close to the marketplace  Pro-business tax (12.5%), legal and government policies  Close business and family connections to USA15 28 September 2012 - Chester Beatty Library
    16. 16. Building 爱尔兰的优势 Bridges to China  讲英语的国家 ( 母语 )  高级基础设施和教育  世界卓越的软件地方化中心  接近市场  低营业税 (12.5%) ,法定的政府政策  与美国的接近贸易和家庭联系16 28 September 2012 - Chester Beatty Library
    17. 17. Building Understanding Chinese Business Bridges to China Culture and Etiquette  The Chinese business practice is vastly different from the Western method that most of us may be used to. Of course, with the Chinese economy opening up, Chinas joining of WTO and the Olympics in 2008, many Chinese business practice are now beginning to align with more conventional methods.  However, China will always have their own unique business culture and etiquette, given their unique history and background.17 28 September 2012 - Chester Beatty Library
    18. 18. Understanding Chinese Business Building Bridges to Culture and Etiquette China  Chinese business contacts are mostly referrals However, it is common today for cold calls and direct contacts, given the availability of the internet and the competitive nature of Chinese businesses.  Business Relationship in China Chinese business relationship inevitably becomes a social relationship after a while.  Seniority is important in China Seniority is very important to the Chinese especially if you are dealing with a State owned or government body. Instead of addressing the other party as Mr. or Mrs. so and so, it is always appropriate to address the other party by his designation (i.e Chairman So and So, Director So and So or Manager So and So)  When giving out name cards or brochures, make sure you start with the most senior person before moving down the line. When giving out a name card or receiving one, ensure that you are stretching out with both hands with the card. Remember to face the card you are giving out in a manner such that the receiving party gets it facing him correctly.18 28 September 2012 - Chester Beatty Library
    19. 19. Building Understanding Chinese Business Bridges to China Culture and Etiquette  Giving Face or Gei MianZi Giving face (aka giving due respect) is a very important concept in China. You must give the appropriate respect according to rank and seniority.  Gifts and Presents Unlike earlier days when China was very poor, gifts, especially of Western origin was especially appreciated. Today, China produces and imports almost anything imaginable and gifts are no longer a novelty.  However, gifts are always appreciated and especially in the smaller cities or towns, will continue to play an important part in your business relationship.  Lunch/Dinner in China There is no business talk in China without at least one trip to a restaurant. Sometimes, a trip is made to the restaurant even before any business discussion take place! Inevitably, the restaurant will always be a grand one and you are likely to be hosted in a private room.  There is an elaborate seating arrangement for a Chinese business meal. There are fixed seating positions for the host and the guest and then they are seated again according to seniority. This is a very important aspect of a formal dinner and it is important that you follow the rules accordingly.19 28 September 2012 - Chester Beatty Library
    20. 20. Building Understanding Chinese Business Bridges to China Culture and Etiquette  Drinking with the Chinese The Chinese are big drinkers especially in Northern and Western China. It does not matter if it is lunch or dinner; as long as a meal is being hosted, there will be alcohol.  Chinese wine is the favorite, followed by red wine and beer. Chinese wine is more like fuel than liquor, having a alcohol concentration as high as 60% or MORE! No matter how good a drinker you may think of yourself, never, ever challenge a Chinese into a drinking contest. They will win, hands down!  It is often seen as rude not to drink with the Chinese in a formal dinner.  After Dinner Entertainment in China Formal business dinner normally drags for quite sometime as there will be much social talk, some karaoke, and drinking contests. Most of the time, everyone is too drunk to indulge in further entertainment after a dinner. In addition, if you are just new to this partnership, you are unlikely to be invited to further after dinner entertainment.  However, once you are familiar with them, you may be invited to a Karaoke, or a Night Club, or a Suana. Do note that if they are the host for the night, all bills will be picked up by them for the night, including all entertainment. It is impolite to fight for the bill or worst, split the bills.20 28 September 2012 - Chester Beatty Library
    21. 21. Understanding Chinese Business Building Bridges to China Culture and Etiquette  Controversial Issues in China There are some taboo areas in social conversations with the Chinese. Try to avoid these conversational topics as much as possible:  1. You must not mention that Taiwan is an independent state or a country. 2. You must NEVER praise the Japanese or be seen to be good buddies with them. 3. You can condemn Chairman Mao Tse Tung but avoid criticizing Deng Hsiao Ping. 4. You must not praise Shanghai in front of natives of Beijing and similarly vice versa.  However, the younger generation, especially those educated overseas, the ‘old’ traditions is not as important as for the older generation, but respect is.21 28 September 2012 - Chester Beatty Library
    22. 22. Cultural Differences - Building Bridges to Potential for Major China Problems  West – Expressionist – Chinese – Listen & learn  West – straight to the point – Chinese – hidden agendas  West & Chinese – explore each others market  To cooperate – find a win + win22 28 September 2012 - Chester Beatty Library
    23. 23. Cultural Differences - Building Bridges to Potential for Major China Problems  Western companies assume creativity – Do not specify requirements in detail  Eastern companies require detailed instructions  Major potential for mistakes!23 28 September 2012 - Chester Beatty Library
    24. 24. Building Chinese Language Bridges to China Standard Mandarin is officially known in mainland China, Hong Kong and Macau as Putonghua (simplified Chinese: 普通 话 ; traditional Chinese: 普通話 ; pinyin : Pǔtōnghuà; literally "common speech"). in Taiwan as Guoyu, and unofficially in Hong Kong as Gwok Yu (simplified Chinese: 国语 ; traditional Chinese: 國語 ; Mandarin Pinyin:Guóyǔ; Jyutping: gwok3 jyu5; literally "national language"). in Malaysia and Singapore as Huayu (simplified Chinese: 华语 ; traditional Chinese: 華語 ; pinyin: Huáyǔ; literally "Chinese (in a cultural sense) language").24 28 September 2012 - Chester Beatty Library
    25. 25. Building Bridges to Chinese Language China 口 = mouth 官 = official 口 +口 = 官 An official have TWO ‘mouths’, a well known Chinese saying25 28 September 2012 - Chester Beatty Library
    26. 26. Building Bridges to Chinese Language China26 28 September 2012 - Chester Beatty Library
    27. 27. Building Bridges to Chinese Language China www.chinpass.com Learn to speak Chinese in 72 hours! Play virtual game to learn27 28 September 2012 - Chester Beatty Library
    28. 28. Building 软件 Software Bridges to China Government bodies – Technology, software industry http://www.most.gov.cn/eng/ http://www.miit.gov.cn/28 28 September 2012 - Chester Beatty Library
    29. 29. Building 软件 Software Bridges to China Government bodies – Technology, software industry  Ministry of Industry and Information Technology ( simplified Chinese: 工业和信息化部 ; traditional Chinese: 工業和信 息化部 ), established in March 2008, is the state agency of the Peoples Republic of China responsible for regulation and development of the postal service, Internet, wireless, broadcasting, communications, production of electronic and information goods, software industry and the promotion of the national knowledge economy.  The Ministry of Industry and Information Technology is NOT responsible for the regulation of content for the media industry.29 28 September 2012 - Chester Beatty Library
    30. 30. Building 软件 Software Bridges to China http://english.cas.cn// http://www.cae.cn/en/ http://www.csia.org.cn30 28 September 2012 - Chester Beatty Library
    31. 31. Related bodies in HKSAR Building Bridges to 软件 Software China http://www.cyberport.hk http://www.ogcio.gov.hk/eng/about/ewelcome.htm http://www.hkstp.org31 28 September 2012 - Chester Beatty Library
    32. 32. Building 软件 Chinese Software Growth Bridges to China  Chinas software industry grew at a compound annual growth rate of more than 39% over the period from 2001 to 2007 to reach RMB 506 billion and is further anticipated to grow at a CAGR of nearly 22% through 2012.  Rapid growth in IT spending among various industrial segments, including government, banking and manufacturing are likely to propel the domestic software industry in near future.  The ongoing large-scale endeavors for 3G deployments are expected to fuel growth in the demand for 3G telecom software across various application platforms.  Expanding broadband infrastructure with increased Internet penetration among Small and Medium Businesses (SMBs) will help the SaaS market to grow at a CAGR of approx 44% during 2008-2012.  The software outsourcing market is anticipated to grow at a CAGR of nearly 34% from 2008 to 2012.  The current perception of lack of required talent in coming few years is urging the foreign IT training and education centers to expand into Chinas IT education market.  Also, China is known as one of the leading countries in software development in world.32 28 September 2012 - Chester Beatty Library
    33. 33. Building 软件 Top Chinese Software Companies Bridges to China  In 2008 there were 984 software companies that achieved 100 million RMB or above in revenues.  Beyondsoft  CDC Software  Chinasoft International Ltd.  hiSoft Technology International  Integrated Solutions Limited Integrated Solutions Limited (ISL)  Kingdee International Software Group Co. Ltd  Neusoft  UFIDA Software Co. Ltd  VanceInfo Technologies Inc.33 28 September 2012 - Chester Beatty Library
    34. 34. Building 软件 Top Chinese Software Companies Bridges to China Sourcing  The exports are mainly driven by the software business given by Japan. Over 60% of Chinese exports are taken up by Japan, as there are a good number of Chinese developers who develop software in Japanese .  Linux  It is predicted that in China, Linux market (both server and client) will grow with an annual rate of 34 %. The client-side share growth will be comparatively faster.  Enterprise software  The Enterprise software market including ERP (Enterprise Resource Planning), SCM (Supply chain Management), EAM (Enterprise Asset Management), CRM (Customer Relationship Management) and financial software is growing rapidly. The ERP software is available from UFIDA Software, Kingdee, SAP, etc.  Are you in the CLOUD !!!34 28 September 2012 - Chester Beatty Library
    35. 35. Building Get it right - Copyright! Bridges to China  INTELLECTUAL-PROPERTY TRANSFER? BUT, China, notorious as a hub of software piracy, has been steadily cleaning up its act. In 2004, 90% of the software used in China was pirated … By 2008, according to the most recent statistics available, that piracy rate had dropped to 80%. Bloomberg Business week – 3,2010 "Chinas increasing efforts to implement policies to promote indigenous innovation that discriminate against foreign firms and seek to compel them to transfer IP rights to Chinese ownership.“ Beijing imposed a Dec. 10, 2009, deadline for companies in software, telecom, energy-efficient products, and three other sectors to apply for placement on a government procurement list of preferred products. To get on the list, companies need products with intellectual property developed, owned, and trademarked in China.35 28 September 2012 - Chester Beatty Library
    36. 36. Building Case Study Bridges to China 1. Delivery of a training service to China:  Argreement signed, June, 2007, with regional office of MII.  Appointed a local partner – Microsoft training in region  Local MII office is the operator.  Detail of Agreement not all deliver ! From payment terms to local partner’s benefits. 2. Renewable Engergy.  Irish Developer secured project finance via trade finance. Is it the right way to do business ?  Major Chinese Wind energy turbine manufactere acquired Dutch Tech Co.  But not seeing eye-2-eye ?  Developing three wind farms in Ireland – over complcated with local detail.36 28 September 2012 - Chester Beatty Library
    37. 37. Building Get It Right! Bridges to China  Know your client.  Know your client’s client ! – government ?  What is the value proposition?  Where the commercial benefits are?  Who & when financial transaction is conducted ?  Make sure you have initial funding requirements +20% !  Brand your product / service, make it sexy !37 28 September 2012 - Chester Beatty Library
    38. 38. Building Get It Right! Bridges to China  Local employees V partner.  Travel & visit your clients – Cost, in time & € !  Micromanagement – COST $$$  Try Agile ?  Try HKSAR – Hong Kong Special Adm Region.  China & Chinese Co is ready and able to invest. Are you ready to sell ?38 28 September 2012 - Chester Beatty Library
    39. 39. Building Bridges to Get It Right! Culture China •Build relations •Traditions •Respect each others culture •‘Face’ in VERY important •Team work •Leadership In China, one single most import aspect:- 联系 ! [guānxì] - Connections, networks -- Mid Autum’s festival, 30-Sept, 2012. -- China National Day, 1-October.39 28 September 2012 - Chester Beatty Library
    40. 40. Building Mr Kraken Yu FIAP BSc MSc Bridges to China Cornerstone Research Intl, NovaUCD, UCD, Ireland HK Business Forum Belfield, Dublin 4 Dublin Chamber of Commerce www.eassess.org Dublin info@eassess.org Ireland kraken@ihkbf.com •Mentor, Enterprise Ireland •ex-Director, China, Asia Trade Forum, Irish Exporters Association, Dublin. THANK YOU ! 谢谢!40 28 September 2012 - Chester Beatty Library
    41. 41. Building Bridges to China Michael Shelly Operations Director, PM Group Central & Eastern Europe (CEE), Russia, Middle East & North Africa (MENA) and Asia41 28 September 2012 - Chester Beatty Library
    42. 42. Building PM Group in China Bridges to China42 28 September 2012 - Chester Beatty Library
    43. 43. Building Overview of PM Group Bridges to China  An integrated A&E Design and Project Management firm  1,750 people - 25 0ffices & 30 countries  Gross Revenue > €200M  Sectors: Life Sciences, Food/Nutritionals, Advanced Technology, Healthcare, Education, Energy & Environmental, Infrastructure  Full Service Company − Architecture & Engineering Design − Permitting & Environmental Consulting − Procurement & Contract Administration − Project & Construction Management − Commissioning & Qualification − Consultancy – Environmental & Sustainability  Established 1973 – Private Company – Employee Owned43 28 September 2012 - Chester Beatty Library
    44. 44. Building Our Clients…… Bridges to Pharmaceutical and BioPharmaceutical China44 28 September 2012 - Chester Beatty Library
    45. 45. Our Clients…. Building Bridges toFood, Nutrition & Consumer Products China Advanced Manufacturing45 28 September 2012 - Chester Beatty Library
    46. 46. Building Biopharma Bridges to China Centocor Ireland Sanofi-Aventis, Paris Janssen,Belgium Merck, Ireland Genzyme, Belgium, USA & China GSK Bio, Belgium Intas, India46 28 September 2012 - Chester Beatty Library
    47. 47. Building Bridges to Food/Nutritionals & Beverage China MARS Wrigley, China Almarai, Saudi Arabia Coca Cola, Ireland Pfizer Wyeth Nutritionals, Suzhou, China Cadbury, Poland Inbev, UK Pfizer Wyeth, Singapore47 28 September 2012 - Chester Beatty Library
    48. 48. Building Advanced Technology Bridges to China Microsoft Data Centre, Ireland Tyndall, Ireland Tyndall, Ireland National Bank of Abu Dhabi Data Centre IBM, Ireland Intel, Ireland Dell, Poland48 28 September 2012 - Chester Beatty Library
    49. 49. Building Bridges to Group Strategy Since 2005 China  Reduce dependency on Ireland  Develop an International ‘footprint’  Follow our MNC clients wherever they are investing  Focus on our Life Sciences & Food Sector clients in Ireland, UK, WE, CEE, Singapore, China, India and the USA  Focus on Healthcare, Education, Science & Technology, R&D, Transportation in Ireland, UK, MENA  Expand our International Consultancy Division into Environmental, Nature Resources & Institutional Strengthening projects in MENA, Central Asia & ASEAN49 28 September 2012 - Chester Beatty Library
    50. 50. PM Group in Asia Today – Building Bridges to Office & Project Locations ChinaGeorgia UzbekistanAzerbaijan Beijing Japan Afghanistan Changshu Suzhou Shanghai Pudong Anhui Hangzhou Punjab New Delhi Gujurat Guangzhou Ahmedabad Bhubaneshwar Maharashtra Mumbai Hanoi Pune Goa Hyderabad Manila Andhra Pradesh Bangalore Chennai Coimbatore Thiruvananthapuram Tamil Naidu Malaysia Singapore50 28 September 2012 - Chester Beatty Library Indonesia
    51. 51. BuildingPM Group’s Business Development in Asia Bridges to China 1998/2001  PM entered and exited Singapore as business model didn’t work 2006  Re-entered Singapore working out of Alliance Partners offices: M+W Zander 2007  Commenced working in China on Wyeth’s Infant Nutritional plant in Suzhou using M+W Zanders’s Shanghai offices 2008  PM moved into own office in Singapore  Commenced working in India with local Alliance Partners: VA Architects (VA) 2009  Signed formal MoU with Venkataramanan Associates (VA), Bangalore 2010  Acquired 50% stake in VA’s Bangalore Engineering company – 50 people  Application made for China WFOE License and office leased in Shanghai 2011  Opening of own office in Shanghai in Feb 2011 2012  Acquired remaining 50% stake in India business to make it 100% PM Group company and moved to new larger office in Bangalore51 28 September 2012 - Chester Beatty Library
    52. 52. Pfizer (Wyeth) Nutritionals, Suzhou, Building Bridges to China | Nutritionals Facility China Plant Area: 50,000 sqm greenfield project Cost: US$300M Scope of services: • Full process design, project & construction management services • 2 new dryers & evaporator trains • 2 wet mixing lines, can and pouch fillers • ASRS warehouse Status: Completed in 201052 28 September 2012 - Chester Beatty Library
    53. 53. Building Novartis, Changshu, China | Novartis Bridges to Chemical API Facility China Site Area: 229,000 sqm Scope of services: •Commissioning & Qualification Status: Completed in 201053 28 September 2012 - Chester Beatty Library
    54. 54. Mead Johnson, Guangzhou, China | R&D Building Bridges to Centre China Scope of services: • EPCM / C&Q • Concept design and detailed design phases Status: In progress54 28 September 2012 - Chester Beatty Library
    55. 55. Building MARS Wrigley, Guangzhou, China | Bridges to Greenfield Confectionery Facility China Plant Area: 46,000 sqm greenfield project Scope of services: • Concept, Detailed Design & Procurement55 28 September 2012 - Chester Beatty Library
    56. 56. Building Setting up a Business in China Bridges to China  Allow 6 – 8 months at least, probably longer  Identify premises and enter appropriate lease  Register company name with Ministry for Industry & Commerce  Register WFOE (Wholly Foreign Owned Enterprise) with relevant City Commerce Committee – must specify scope of business  Business Licence – Ministry for Industry & Commerce  Design Licence – Ministry of Construction  Enterprise Registration – Technical & Quality Supervision Bureau (Design)  Tax Registration – Relevant City Tax Office  SAFE Tax Registration – State Administration of Foreign Exchange56 28 September 2012 - Chester Beatty Library
    57. 57. Building Doing Business in China – WFOE Route Bridges to China  Engage local professional advice  Develop a realistic business plan for WFOE licence submission  Ensure all your registrations are applied for in the correct sequence  Three months to submit all registrations – or start again!  Comply fully with the terms of your registration  Accept that China is more bureaucratic than Ireland – be patient  Get it right first time – do your homework in advance  Pay your Taxes!57 28 September 2012 - Chester Beatty Library
    58. 58. Doing Business in China – Sponsor Building Bridges to Route China This is an alternative route – used by PM whilst applying for WFOE M+W Zander are a Design & Build company and operate across Asia PM and M+W Zander have an MoU for working across Asia M+W Zander have all necessary Chinese Registrations and Licences PM operate as specialist process design consultant to M+W Zander M+W Zander sponsored PM and applied for our Work Permits PM Personnel work in M+W Zander’s offices and sites PM projects registered with tax authorities in relevant locations for compliance58 28 September 2012 - Chester Beatty Library
    59. 59. Building Bridges to China - Ease of doing business China  China is 91 out of 183 in The World Bank “Ease of Doing Business” Rankings  Low rankings – Dealing with construction permits (179th) – Starting a business (151st) – Paying taxes (122nd) – Getting Electricity (115th) – Protecting Investors (97th)  China ranks 75th in the Transparency International “Corruption Perception Index” (Ireland ranks 19th)59 28 September 2012 - Chester Beatty Library
    60. 60. Building Top 12 Pharma FDI Companies in China Bridges to China  Johnson & Johnson, USA  Pfizer (Wyeth), USA  Roche, Switzerland  GlaxoSmithKline, UK / Belgium  Novartis, Switzerland  Sanofi-Aventis, France / Germany  AstraZeneca, UK / Sweden / USA  Abbott Laboratories, USA  Merck & Co., USA  Bayer Healthcare, Germany  Eli Lilly, USA  Bristol-Myers Squibb, USA60 28 September 2012 - Chester Beatty Library
    61. 61. Top 12 Food & Beverage FDI Companies Building Bridges to in China China  Nestle, Switzerland  PepsiCo, USA  Kraft Foods, USA  Anheuser Bush InBev, Belgium  ADM, USA  Coca Cola, USA  MARS Wrigley, USA  Unilever, UK / Holland  Tyson Foods, USA  Cargill, USA  SAB Miller, USA  Danone, France61 28 September 2012 - Chester Beatty Library
    62. 62. Building Critical Success Factors for PM Group Bridges to China  Having a business model that suits our clients’ needs  Investing properly in the business from the outset, giving our new venture the necessary momentum to be successful  Having the right management team on the ground in China  Achieving early wins with our MNC clients in Q1 and Q2 2011  Developing a good working relationship with alliance partners from the outset – including LDI’s (Local Design Institutes)  Knowing our weaknesses – ensuring that we do not overstretch ourselves and that we deliver on our commitments to our clients62 28 September 2012 - Chester Beatty Library
    63. 63. Building Key Lessons Bridges to China  Be clear on why you are setting up in China and your strategy for success  It is a very, very competitive environment – be clear about your USP and if there is a market for it  Labour costs have risen to EU levels for very good locals, so hire cautiously and invest heavily in retention and career development  Language is an issue. You will need people you can trust with good language skills  The bureaucracy is a lot more than we are used to. You must learn to work within the system63 28 September 2012 - Chester Beatty Library
    64. 64. Building Bridges to The Cultural Difference China West versus China The Boss Thinking Me Problem ahead Contact Anger64 28 September 2012 - Chester Beatty Library
    65. 65. Building Bridges to In Conclusion China  There is lots of opportunity for Irish companies in a global market and particularly so in China and in Asia generally  Prepare well and learn from anyone you can  Do your homework and set clear targets  Get good local legal and financial advice  Utilise the support of Enterprise Ireland and the Irish Embassy  Allow realistic timescales to achieve success65 28 September 2012 - Chester Beatty Library
    66. 66. Building Bridges to China www.pmgroup-global.com66 28 September 2012 - Chester Beatty Library

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