south china morning post wednesday, april …€¦ · head office in amsterdam, con-sists of wholly...

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More than 175 years ago, Indover bank was established as the Javasche Bank in Indonesia. Fol- lowing the Asian financial crisis, its new management realised that refocusing the business as a bridge bank between East Asia and Europe was necessary for a successful turnaround. ‘‘The bank was quite deeply affected by the Asian crisis, and our balance sheet needed to be recapitalised and strengthened,’’ says Indover President Muhamad Muchtar. ‘‘We had to reinvent our vision and mission, and it was clear that we had to become the bridge bank between East Asia and Europe.’’ Today, Indover is ‘‘a sound, prudent, profitable and special- ised wholesale bank’’ with exper- tise as a niche player in trade finance, investment banking and corporate finance products, Mr Muchtar says. ‘‘This is our core competency. We are not a retail bank, we are not a full-scale wholesale bank and we are not a type of private bank. But there is a market for us as a niche player; therefore, in order for this vision to materialise we adopted our strategy – multi- ple niching.’’ The refocus has paid off signif- icantly for Indover. In 2001, the first full year after the turn- around, the company achieved record profits of almost 19 million euros (about HK$160 million), double the pre-crisis record. Last year was the second record year in the company’s history, despite the difficult economic circum- stances. ‘‘This is proof of the viability and success of this strategy of multiple niching, and proof of the expertise of this small, strong bank,’’ said Dick van Leeuwen, executive vice president and gen- eral manager. Finding niche markets is famil- iar activity for Indover. The niches of the past, however, were more in terms of market, as opposed to product. Indover’s predecessor, Javasche Bank, was established as a subsidiary of the Dutch Central Bank in 1828 in the East Indies – now Indonesia – to facilitate the import-export business between the East Indies and Holland. Nowadays the group, with its head office in Amsterdam, con- sists of wholly owned subsidiaries in Hong Kong and Singapore, a full branch in Hamburg, Germany and a representative office in Ja- karta, Indonesia. Indover has a presence in oth- er Asian markets as well. ‘‘We have diversified into mainland China, Hong Kong, and through our Singapore office we have build up not only in Singa- pore, but in Malaysia, the Philip- pines, Thailand and Vietnam,’’ Mr Muchtar says. Mr van Leeuwen says: ‘‘Ac- cording to World Trade Organisa- tion statistics, 18 per cent of the world’s trade goes through five countries – the Netherlands, Ger- many, Indonesia, Singapore, and Hong Kong. Those are exactly the countries where we are located.’’ The Hong Kong office plays a big role in all the bank’s opera- tions and is Indover’s East-Asian centre for investment banking. ‘‘Being a suitable location for regional headquarters for off- shore activities, like insurance, business and shipping business, Hong Kong has a strong demand for financial products, making it a strategic location for our invest- ment banking,’’ Mr Muchtar says. The European centre for Indover’s investment banking re- mains in Amsterdam. Investment banking offerings include market- able securities, money market, foreign exchange and interest-de- rivative products, and risk-man- agement advisory. The company is also seeking potential partners to expand its trade finance efforts into China. With Hong Kong similarly active in the trade finance business, it serves as a base for Indover to offer these services in the main- land, where it sees great prospects. ‘‘With China joining the WTO, many barriers are expected to be lifted and there will be opportuni- ties for suitable strategic alliances,’’ Mr Muchtar says. ‘‘The trade business between Europe and China is developing quite well.’’ Indover already has associa- tions with the five biggest Chinese banks, Mr van Leeuwen says. Recently, intra-Asian trade has emerged as a new area of impor- tance within the company’s trade finance business. Looking beyond the trading between Europe and China, bank officials are focusing on trade among mainland China and its neighbouring countries. ‘‘We noticed that the volume of export-import between main- land China and the rest of Asia is roughly around US$100 billion,’’ Mr Muchtar says. ‘‘Currently, the China transactions are handled through our Hong Kong office, but we do have it in our strategic vision to go into mainland China by 2005.’’ Shanghai and Beijing are con- sidered potential branch loca- tions. In corporate finance, product innovation has been the key to ‘‘bringing parties together from both sides of the world,’’ says Mr van Leeuwen. Acting in an advi- sory role, Indover assists busi- nesses on promoting their prod- ucts in other markets. Mr Muchtar says: ‘‘Indonesia is now emerging from the Asian crisis, the government is rebuild- ing the economy and there is need for spare parts, raw materi- als, and advisory projects, such as agri-business. Holland is very famous for hi-tech agri-business, so it is a good match.’’ Government projects focused on improving the living standards in emerging markets also fit well in the bank’s agenda. With a proven strategy in place, the bank’s goals are to ‘‘keep it that way’’, Mr Muchtar says. ‘‘In terms of assets we are small, but in knowledge, large. By being large in knowledge we add value for our clients.’’ With the onset of globalisation, it was important for many Europe- an and American companies to follow their customers to Asia. Amphenol mirrored the trend. However, as globalisation shifted its focus to attracting local clientele, Amphenol stayed ahead of the curve by tapping the local knowledge base in China. ‘‘The concept of deploying Asian talent to the West to help with new product design is very new,’’ says Mark Twaalfhoven, di- rector of North America and Asian operations, Amphenol World Headquarters. The company is bringing Chi- nese engineers to Europe to work with customers’ design teams, a project initiated by Mr Twaalfhoven. Because so much production has shifted to Asia, they have the ability to design for what we call manufacturability, says Mr Twaalfhoven. ‘‘The involvement of the Asian engineers will actually modify de- sign concepts to lower the manu- facturing cost, but also to in- crease product quality.’’ Over the past five years, Amphenol has had numerous in- novations in product design that originated in Asia. In the mobile- phone area, the company’s Chi- nese engineers combined four distinct product parts into one. ‘‘Such an innovation saves the customer millions of dollars a year,’’ says Mr Twaalfhoven. Active in aerospace, cars, broadband, industrial Internet, mobile phones, and wireless in- frastructure, Amphenol produces components often unseen, but present in countless number of devices. ‘‘Of the 423 million mobile phones produced in the world last year, 220 million had Amphenol components on board,’’ says Mr Twaalfhoven. Asia represents 20 per cent of the company’s revenue worldwide. ‘‘Our Asian operations are substantially more profitable than the American and European operations,’’ says Mr Twaalfhoven. Hong Kong plays an integral role as its Asian headquarters, from which they manage their 20 factories in the region. NETHERLANDS DAY SPONSORED SUPPLEMENT S3 WEDNESDAY, APRIL 30, 2003 SOUTH CHINA MORNING POST 3FSUP 723 X 1028 Indover looks to past for today’s success Amphenol looks to Asia region for engineering talent Finding multiple niches has paid off for the Dutch bank Reports by Angela Gaspar and Johanna de Larrazabal Amphenol director Mark Twaalfhoven says 220 million mobile phones made last year had Amphenol components on board. ‘‘In terms of assets we are small, but in knowledge, large. By being large in knowledge we add value for our clients’’ Muhamad Muchtar President, Indover Bank Dick van Leeuwen, left, executive vice-president and general manager, and Muhamad Muchtar, president, of Indover Bank. The bank has profited from a refocus on niche products since the Asia financial crisis of 1997. Sponsored Section in co-operation with Discovery Reports DESKSUP SCM,2003-04-30,3,SUP,3,FULL COLOUR PAGE - Wed Apr 23 16:32:41 2003 - Job2845157 DESKSUP SCM,2003-04-30,3,SUP,3,FULL COLOUR PAGE - Wed Apr 23 16:32:41 2003 - Job2845157 DESKSUP SCM,2003-04-30,3,SUP,3,FULL COLOUR PAGE - Wed Apr 23 16:32:41 2003 - Job2845157 DESKSUP SCM,2003-04-30,3,SUP,3,FULL COLOUR PAGE - Wed Apr 23 16:32:41 2003 - Job2845157

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More than 175 years ago, Indoverbank was established as theJavasche Bank in Indonesia. Fol-lowing the Asian financial crisis,its new management realised thatrefocusing the business as abridge bank between East Asiaand Europe was necessary for asuccessful turnaround.

‘‘The bank was quite deeplyaffected by the Asian crisis, andour balance sheet needed to berecapitalised and strengthened,’’says Indover President MuhamadMuchtar. ‘‘We had to reinvent ourvision and mission, and it wasclear that we had to become thebridge bank between East Asiaand Europe.’’

Today, Indover is ‘‘a sound,prudent, profitable and special-ised wholesale bank’’ with exper-tise as a niche player in tradefinance, investment banking andcorporate finance products, MrMuchtar says.

‘‘This is our core competency.We are not a retail bank, we arenot a full-scale wholesale bankand we are not a type of privatebank. But there is a market for usas a niche player; therefore, inorder for this vision to materialisewe adopted our strategy – multi-ple niching.’’

The refocus has paid off signif-

icantly for Indover. In 2001, thefirst full year after the turn-around, the company achievedrecord profits of almost 19 millioneuros (about HK$160 million),double the pre-crisis record. Lastyear was the second record yearin the company’s history, despitethe difficult economic circum-stances.

‘‘This is proof of the viabilityand success of this strategy ofmultiple niching, and proof of theexpertise of this small, strongbank,’’ said Dick van Leeuwen,executive vice president and gen-eral manager.

Finding niche markets is famil-iar activity for Indover. The nichesof the past, however, were more interms of market, as opposed toproduct. Indover’s predecessor,Javasche Bank, was established asa subsidiary of the Dutch CentralBank in 1828 in the East Indies –now Indonesia – to facilitate theimport-export business betweenthe East Indies and Holland.

Nowadays the group, with itshead office in Amsterdam, con-sists of wholly owned subsidiariesin Hong Kong and Singapore, afull branch in Hamburg, Germanyand a representative office in Ja-karta, Indonesia.

Indover has a presence in oth-er Asian markets as well.

‘‘We have diversified intomainland China, Hong Kong, andthrough our Singapore office wehave build up not only in Singa-pore, but in Malaysia, the Philip-pines, Thailand and Vietnam,’’Mr Muchtar says.

Mr van Leeuwen says: ‘‘Ac-cording to World Trade Organisa-tion statistics, 18 per cent of theworld’s trade goes through fivecountries – the Netherlands, Ger-many, Indonesia, Singapore, andHong Kong. Those are exactly thecountries where we are located.’’

The Hong Kong office plays abig role in all the bank’s opera-tions and is Indover’s East-Asiancentre for investment banking.

‘‘Being a suitable location forregional headquarters for off-shore activities, like insurance,business and shipping business,Hong Kong has a strong demandfor financial products, making it astrategic location for our invest-ment banking,’’ Mr Muchtar says.

The European centre forIndover’s investment banking re-mains in Amsterdam. Investmentbanking offerings include market-able securities, money market,

foreign exchange and interest-de-rivative products, and risk-man-agement advisory.

The company is also seekingpotential partners to expand itstrade finance efforts into China.With Hong Kong similarly activein the trade finance business, itserves as a base for Indover tooffer these services in the main-land, where it sees greatprospects.

‘‘With China joining the WTO,many barriers are expected to belifted and there will be opportuni-ties for suitable strategicalliances,’’ Mr Muchtar says.

‘‘The trade business betweenEurope and China is developingquite well.’’

Indover already has associa-tions with the five biggest Chinesebanks, Mr van Leeuwen says.

Recently, intra-Asian trade hasemerged as a new area of impor-tance within the company’s tradefinance business. Looking beyondthe trading between Europe andChina, bank officials are focusingon trade among mainland Chinaand its neighbouring countries.

‘‘We noticed that the volumeof export-import between main-land China and the rest of Asia isroughly around US$100 billion,’’

Mr Muchtar says. ‘‘Currently, theChina transactions are handledthrough our Hong Kong office,but we do have it in our strategicvision to go into mainland Chinaby 2005.’’

Shanghai and Beijing are con-sidered potential branch loca-tions.

In corporate finance, productinnovation has been the key to‘‘bringing parties together fromboth sides of the world,’’ says Mrvan Leeuwen. Acting in an advi-sory role, Indover assists busi-nesses on promoting their prod-ucts in other markets.

Mr Muchtar says: ‘‘Indonesiais now emerging from the Asiancrisis, the government is rebuild-ing the economy and there isneed for spare parts, raw materi-als, and advisory projects, such asagri-business. Holland is veryfamous for hi-tech agri-business,so it is a good match.’’

Government projects focusedon improving the living standardsin emerging markets also fit wellin the bank’s agenda.

With a proven strategy inplace, the bank’s goals are to‘‘keep it that way’’, Mr Muchtarsays.

‘‘In terms of assets we aresmall, but in knowledge, large. Bybeing large in knowledge we addvalue for our clients.’’

With the onset of globalisation, itwas important for many Europe-an and American companies tofollow their customers to Asia.Amphenol mirrored the trend.

However, as globalisationshifted its focus to attracting localclientele, Amphenol stayed aheadof the curve by tapping the localknowledge base in China.

‘‘The concept of deployingAsian talent to the West to helpwith new product design is verynew,’’ says Mark Twaalfhoven, di-rector of North America andAsian operations, AmphenolWorld Headquarters.

The company is bringing Chi-nese engineers to Europe to workwith customers’ design teams, aproject initiated by MrTwaalfhoven.

Because so much productionhas shifted to Asia, they have theability to design for what we callmanufacturability, says MrTwaalfhoven.

‘‘The involvement of the Asianengineers will actually modify de-sign concepts to lower the manu-facturing cost, but also to in-crease product quality.’’

Over the past five years,

Amphenol has had numerous in-novations in product design thatoriginated in Asia. In the mobile-phone area, the company’s Chi-nese engineers combined fourdistinct product parts into one.

‘‘Such an innovation saves thecustomer millions of dollars ayear,’’ says Mr Twaalfhoven.

Active in aerospace, cars,broadband, industrial Internet,mobile phones, and wireless in-frastructure, Amphenol producescomponents often unseen, butpresent in countless number ofdevices.

‘‘Of the 423 million mobilephones produced in the worldlast year, 220 mill ion hadAmphenol components onboard,’’ says Mr Twaalfhoven.

Asia represents 20 per cent ofthe company’s revenueworldwide.

‘‘Our Asian operations aresubstantially more profitable thanthe American and Europeanoperations,’ ’ says MrTwaalfhoven.

Hong Kong plays an integralrole as its Asian headquarters,from which they manage their 20factories in the region.

NETHERLANDS DAY SPONSORED SUPPLEMENT S3WEDNESDAY , A PR I L 3 0 , 2 0 0 3SOUTH CH I NA MORN ING POS T

3FSUP

723 X 1028

Indover looks to past for today’s success

Amphenol looksto Asia region forengineering talent

Finding multiple niches has paid off for the Dutch bank

Reports by Angela Gaspar andJohanna de Larrazabal

Amphenol director Mark Twaalfhoven says 220 million mobile phones

made last year had Amphenol components on board.

‘‘In terms of assetswe are small, but inknowledge, large.By being large inknowledge weadd value for ourclients’’

Muhamad Muchtar

President, Indover Bank

Dick van Leeuwen, left, executive vice-president and general manager, and Muhamad Muchtar, president, ofIndover Bank. The bank has profited from a refocus on niche products since the Asia financial crisis of 1997.

Sponsored Section in co-operation with Discovery Reports

DESKSUP SCM,2003-04-30,3,SUP,3,FULL COLOUR PAGE - Wed Apr 23 16:32:41 2003 - Job2845157DESKSUP SCM,2003-04-30,3,SUP,3,FULL COLOUR PAGE - Wed Apr 23 16:32:41 2003 - Job2845157DESKSUP SCM,2003-04-30,3,SUP,3,FULL COLOUR PAGE - Wed Apr 23 16:32:41 2003 - Job2845157DESKSUP SCM,2003-04-30,3,SUP,3,FULL COLOUR PAGE - Wed Apr 23 16:32:41 2003 - Job2845157

Co-operation instead of directcompetition has helped Van OordACZ, a family-owned Dutch ma-rine contractor and one of the fivelargest global dredging compa-nies, create liaisons that havehelped them succeed worldwide.

In Asia, it has given the com-pany a presence in most of themajor land reclamation, dredgingor under-sea pipeline projects andhas made it the first foreign dredg-ing company to operate in China.

‘‘When possible, local compa-nies should do the work. Becausewhat would be unhealthy isbringing in foreign equipmentwhile local equipment lies idle,’’Peter de Ridder, member of theVan Oord ACZ board, says. ‘‘Wewant to support local companies,help them fulfil their commit-ments, work with them long-term, and work as friends, notjust partners.’’

As experts in dredging, off-shore works, and coastal con-struction, Van Oord ACZ has ap-

plied its more than 50 years ofexperience to the West Kowloonproject in Hong Kong as lead con-tractor. It partnered with ChinaState Construction EngineeringCorp and Leighton Contractors(HK) on reclamation for the HongKong Convention and ExhibitionCentre. They were also subcon-tracted by Hyundai for dredgingand sand supply in the CT9 ter-minal, by the Airport PlatformContractors Marine Works jointventure for Chep Lap Kok, and byHAM Dredging for work atPennny Bay.

The company, a full-servicecompany unlike other dredging-focused operations, combines itsthree specialities to offer tailoredservice packages, such as for theMalampaya off-shore venture inthe Philippines and the Sakhalinoff-shore platform in Russia.

Having offices in 15 countriesenables Van Oord ACZ to effec-tively deploy equipment andmanpower to fulfil its various

contracts. At present the firm hasmobilised one of its dredgers tosupport the Nan Yue Port Projectof the Shanghai deepwater port,which will reclaim land for hous-ing and develop the island into abig-container port.

Relationships built in Asia havealso assisted the company wincontracts in other regions, Mr deRidder says, particularly in theMiddle East. Those experienceshelped Van Oord ACZ become thelead contractor for Palm IslandJumeirah in Dubai, an intricateproject that will create a reclaimedpalm-tree shaped resort island.

With most dredging opportu-nities in Europe related to main-tenance, Van Oord ACZ’s focuson Asia remains strong. China isthe biggest dredging market inthe world.

‘‘The state is ambitious in itsprojects and aggressive in itsschedule that we feel there will bemany opportunities for us to as-sist them,’’ Mr de Ridder says.

Health is an ever-increasing con-cern in Asia and the medical tech-nology companies have been rac-ing to respond where they can.Cardio Control offers solutions inthe area of PC-based non-invasivediagnostic equipment.

The Dutch company has in-stallations throughout Asia, in-cluding in the mainland, where itis expanding, says internationalsales director Rolf-HenryGronlund.

Mr Gronlund is confident ofCardio Control’s growth in Asiabecause of the high acceptancerate of new technologies.

A worldwide market leaderand pioneer in its sector, CardioControl produces software thattransforms off-the-shelf Windowscomputers into diagnostic sys-tems, such as electrocardiograph(ECG)or spirometry systems, usedfor testing lung functionality andcapacity.

Mr Gronlund says: ‘‘These de-vices provide the same informa-tion as traditional ECG machines,but with a lower investment andmaintenance cost.’’

The software package CardioControl Workstation can be usedon personal digital assistants run-ning Windows CE.

Cardio Control also producesportable diagnostic devices forstress, ambulatory blood pressureand spirometry. The ambulatoryblood pressure system can be usedby a patient for 24 hours, produc-ing more accurate results.

Cardio Control’s system is flexi-ble and ‘‘can be used as astandalone system in a clinic re-placing a conventional unit, or itcan be part of a hospital informa-tion network’’, Mr Gronlund says.

A physician can visit patients indifferent locations and view theresults.

The company supports its deal-ers through its Perfect PartnersProgramme.

‘‘We can do advertising, lay-outs, pictures and banners for In-ternet marketing,’ ’ says MrGronlund.

Whether you are in a big city or asmall village, the power and po-tential of one small satellite dishis endless. Satellites provide glob-al coverage and keep the worldconnected by video, data and In-ternet services.

For New Skies Satellites, aglobal satellite communicationscompany based in The Hague,the Asian region is emerging as anincreasingly promising market forthese services. The companylaunched two new satellites lastyear – one, the NSS-6 satellite, toserve this area. Another satellite,NSS-5, was moved at the end oflast year to cover the Pacific Rim.

‘‘The NSS-6 satellite is far andaway the most advanced and so-phisticated satellite coveringAsia,’’ says Daniel Goldberg, chiefexecutive of New Skies Satellites.

‘‘The satellite provides accessto communications services rang-ing from direct-to-home televis-ion distribution to two-way busi-ness communications.’’

With the NSS-5 and NSS-6,launched in an Ariane 5 rocket(right) in place and providing ex-cellent coverage for China, 2003 isshaping up to be an importantyear for New Skies’ expansioninto China. The company openeda representative office in Beijingin December and has establisheda presence in Hong Kong, withMaurice Liu at the helm.

New Skies is also establishinglocal relationships. ‘‘We have anarrangement in place alreadywith ChinaSat,’’ Mr Goldbergsays. ‘‘We also have a good work-ing relationship with SinoSat.’’

Mr Goldberg insists that NewSkies is in the China market forthe long term.

Steenland’s Chocoladefabriek iscarrying on a 104-year-old familytradition by catering to tastes forall seasons.

Gerard Steenland, grandson ofthe founder, says that when hisgrandfather started making choc-olate eggs he probably neverimagined manufacturing choco-late kumquats.

‘‘You must have some feelingfor the culture of the people andknow what you can produce forthem in that market,’’ says MrSteenland, managing director ofthe family firm. ‘‘My task is tomaximise the opportunities, andover the past 30 years the oppor-tunity was to go global. I was inChina for Lunar New Year andsaw kumquats. We already made

soccer balls. Since they are thesame shape as kumquats, weended up creating a new item.’’

An open attitude to opportuni-ty and creating specialised sea-sonal chocolates for varied mar-kets – from Christmas and Easterin the West to Lunar New Year inthe East – has enabled the privatefirm to succeed for three genera-tions.

The chocolatier is the world’slargest producer of chocolatecoins, exporting its products to 65countries.

Importing into Hong Kongsince 1956, Steenland is knownfor its chocolate coins, from loosecoins and coins in nets, to attrac-tive bear boxes filled with coins.

It produced the medallions

distributed at the opening ofHongkong & Shanghai Bank andcommemorative coins for the1997 handover.

‘‘The bear is appealing to theChinese market. We just see whatis popular in the market to comeup with the idea and work withthe feedback from clients to per-fect the product,’’ says MrSteenland. ‘‘It is a very personalapproach.’’

Steenland chocolates are avail-able throughout the region. MrSteenland says a manufacturingfacility in the mainland is underconsideration.

The company’s commitmentto the Chinese market was recog-nised with Cathay Pacific’s ChinaTrader Award in 1997.

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Partnerships at core of Van Oord ACZ growth

Van Oord ACZ managing director Peter de Ridder wants to work with local companies in the long term.

Satellite communications firmsets its sights on China’s skies

Rolf-Henry Gronlund

Cardio eyesAsia’s needsfor medicalequipment

Chocolate dynasty findssweet success in innovation

Steenland’s

Chocoladefabriek

managing

director Gerard

Steenland takes

every opportunity to

realise the full

potential of his

family’s business,

such as his inspired

introduction of

chocolate

kumquats.

Sponsored Section in co-operation with Discovery Reports

DESKSUP SCM,2003-04-30,3,SUP,4, - Wed Apr 23 16:43:03 2003 - Job3107301DESKSUP SCM,2003-04-30,3,SUP,4, - Wed Apr 23 16:43:03 2003 - Job3107301DESKSUP SCM,2003-04-30,3,SUP,4, - Wed Apr 23 16:43:03 2003 - Job3107301DESKSUP SCM,2003-04-30,3,SUP,4, - Wed Apr 23 16:43:03 2003 - Job3107301

With eight profitable businessesin the mainland – including sixventures with local firms – theDutch specialty chemicals com-pany DSM knows that it takeswillingness to evolve and strategicrelationships to succeed.

‘‘It took quite some time be-fore we had this critical mass [inChina], with sufficient numbersof people, sufficient competencesand sufficient knowledge and cul-ture experience,’’ says PeterElverding, chairman of DSM’smanaging board of directors.

‘‘From that moment, thingswent easier, better, faster.

‘‘Today, we are still expandingour position in China, looking formore joint ventures or acquisi-tions. It is a region in which thereare huge opportunities for us,’’ hesays.

DSM manufactures specialtybiotech and chemical materialsused in products from food andpharmaceuticals to clothing.

It has a strong mainland pres-ence in its three core businesses:life science products, perfor-

mance materials and industrialchemicals.

‘‘All these businesses are quiteprofitable, which for many non-Chinese companies is quiteunusual,’’ Mr Elverding says.

China also offers prospects be-yond production, he says, as DSMcan supply key components tolocal manufacturers of productsranging from antibiotics and carsto clothing and furniture.

To this end, DSM has foursales offices in the mainland tomarket not only what it manufac-tures in China but also what itproduces in Europe.

The company’s latest jointventure is with Sinopec NanjingChemical Industries, an integrat-ed energy and chemical com-pany.

DSM Nanjing Chemical givesDSM a local presence in themanufacturing of caprolactam,an essential ingredient in the cre-ation of nylon and for the carbonindustry.

DSM is expanding the existingplant’s manufacturing capacity

from 60,000 tonnes a year to140,000 tonnes to keep up withChina’s growing demand forcaprolactam.

The century-old company alsouses expertise from one group todevelop products in another. MrElverding says these synergieshave led to the creation of Stanyl,a heat-resistant nylon, andDyneema, the strongest fibre inthe world. Dyneema is used forbullet-proof vests, cockpit doors,and sailing and fencingequipment.

Despite its international suc-cesses, DSM has kept in touchwith its Dutch roots and has astrong focus on giving back to thecommunity.

It has supported the DutchOlympic committee for the pasttwo years by sponsoring athletesin sports that showcase DSM’sspecialty materials, such as snow-boarding and rowing.

‘‘It is a typical DSM contribu-tion – not only money but alsotechnical innovations of thefuture,’’ Mr Elverding says.

Eurodrug Laboratories, known inHong Kong for its anti-obesityproduct Panbesy, is launchingthree new products this year.

In March, Eurodrug intro-duced Nopal, a natural obesity-management food supplement.It is derived from the Mexicancactus of the same name, and isdesigned to provide consumers afeeling of satiety.

‘‘Nopal is known in SouthAmerica, where it has been widelyconsumed since the Aztec andMayan civilisations.

‘‘Today, the fresh cactus is stillan element of the normal dailydiet,’’ says Fred van Gulik,founder and managing director ofEurodrug Laboratories.

This month Eurodrug is intro-ducing its blood-cholesterol re-ducer Simtin.

Lowering cholesterol levels re-duces the risk of heart diseasesubstantially.

Next month, the firm willlaunch ‘‘the first chewable choco-late-flavoured iron tablet with nometallic after taste’’, says Mr vanGulik. Called Eurofer-Chew, themineral supplement is said to beideal for pregnant women and forchildren.

The firm has a presence inalmost a dozen Asian countries,and the company chose HongKong for its global base 20 years

ago due to the excellent businessenvironment.

Hong Kong gives companiesthe freedom to determine thedestination of profits, says Mr vanGulik.

This enables Eurodrug to rein-vest 20 per cent of its profits inthe research and development ofnew products, including patenteddrugs, he adds.

Eurodrug started by bringingtogether research projects of uni-versity centres and small to medi-um-sized research-based Europe-an enterprises.

It helped these companiesmarket their drugs through itsAsian, Latin American and East-ern European networks. Eurodrugworks with the University ofHong Kong on its anti-inflamma-tory Cox-2 drug known to HongKong doctors as Nidol.

Eurodrug also explores part-nerships in the region, particular-ly in China.

‘‘We have created an interna-tional network for production,synthesis and marketing of phar-maceuticals.

‘‘An important Asian partycould participate under a strate-gic alliance and bring its productsinto that pipeline and also partici-pate in the share capital. That iswhat we envision for the longrun,’’ says Mr van Gulik.

More people are seeking naturaltreatments for ailments, andBional Holding has seendemand for its plant-basedremedies grow internationally.

With the introduction of justone of its products in Hong Konglast August, the 28-year-oldcompany has tapped into a newgrowth market in Asia.

‘‘We had reorders just a fewweeks after the first shipment ofanti-smoking cure,’’ says BionalInternational managing directorJan Snippe.

‘‘Hong Kong came across mypath like a flying bird – I had achoice to capture it or let it flyaway. The choice was easy.’’

The Dutch phytotherapeuticcompany set up an internationaldivision 10 years ago to copewith the demand for its products.It handles sales of about 30products in almost 25 countries.

Phytotherapeutic remediesare made of natural plantcompounds. No chemicals areadded.

Word of Bional’s productshas spread quickly in the region,with two slimming productsshipped to Taiwan in November.The mainland and Japan are thecompany’s next target markets,with footholds being createdthrough partnerships ordistributors.

Bional Holding vice-president Peter Verpalen says thepopularity of Bional’s productsis rooted in the advantages naturalproducts have overpharmaceutical ones.

‘‘If you compare apharmaceutical with a compoundfrom us, you have more or lessthe same efficacy, but the profileof side effects is much better forour products,’’ he says.

‘‘Phyto is ‘back to basics’because the basis ofpharmacotherapy is nature, theextracts of plants. There is atremendous increase in interestfrom consumers and patients inthese products.’’

To substantiate the claims ofits remedies, Bional hasestablished a research anddevelopment centre that hiresoutside experts to validate thesafety, quality and efficacy ofproducts.

Last year it also became thefirst company in the industry toreceive the European Union’sGood Manufacturing Practicecertification.

Bram’s Paris has been sourcingmaterials for its jeans and casualclothing line from Hong Kongsince the firm was founded in1975. Now it is preparing for ex-pansion to the mainland.

‘‘Eighty per cent to 90 per centof our turnover comes from HongKong and China,’’ says PeterHeerlien, managing director ofthe family-owned company,which makes more than 2.7 mil-lion pairs of jeans per year alongwith other casual garments.

Bram’s Paris set up its firstAsian office, PMH International,in Hong Kong last August.

‘‘We are now building on therelationships which we had in thepast, but we are also building newrelationships for the future,’’ saysMr Heerlien.

Advantages in doing businessin Hong Kong include local ex-pertise in the garment industryand the role Hong Kong plays as agateway to China.

PMH is headed by a 17-yeartextile-industry veteran, Irene Fu.

Mr Heerlien says: ‘‘We want tohave good relationships in China.They have the best prices and thebest products.

‘‘The next step for us will be inShanghai, as the daughter com-pany of the Hong Kong com-pany.’’

PMH also offers its capabilitiesto third-party companies interest-ed in sourcing from Hong Kongor China.

‘‘Other textile and clothingcompanies who need a buyingoffice or agency in Hong Kong

can make use of our office,’’ saysMr Heerlien.

‘‘We like to grow,’’ he says,adding that the company plans toexpand its Hong Kong office andits customer base.

To facilitate this, he will con-tinue to implement, in corporateheadquarters and at PMH, thecompany philosophy – ‘‘Bram’sParis Feeling’’ – which empha-sises a family atmosphere to fos-ter improved communication be-tween management and staff, andwhich improves productivity.

‘‘When people enjoy the work,they work better, you get moreresults,’’ notes Mr Heerlien.

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DSM gets chemistryworking for growth

DSM chairman Peter Elverding is seeking more mainland joint ventures.

Eurodrug offers morefor weight watchers

Eurodrug Laboratories managing director Fred van Gulik invites Asian

enterprises to participate in strategic alliances with his company.

Bionalfindsnaturaloutletsin East

Peter Verpalen

Bram’s Paris has eyes on ShanghaiBram’s Paris

managing director

Peter Heerlien

intends to expand

his clothing

company’s Hong

Kong office as

well as open a

Shanghai-based

subsidiary.

Sponsored Section in co-operation with Discovery Reports

DESKSUP SCM,2003-04-30,3,SUP,5, - Wed Apr 23 16:32:47 2003 - Job2910693DESKSUP SCM,2003-04-30,3,SUP,5, - Wed Apr 23 16:32:47 2003 - Job2910693DESKSUP SCM,2003-04-30,3,SUP,5, - Wed Apr 23 16:32:47 2003 - Job2910693DESKSUP SCM,2003-04-30,3,SUP,5, - Wed Apr 23 16:32:47 2003 - Job2910693

The constant activity at Chek LapKok airport calls for the most so-phisticated and efficient supportnetwork. Vanderlande BV, aDutch materials handling com-pany, played its part by providingthe airport with its baggage han-dling systems.

‘‘Hong Kong Airport is a majorreference for us,’’ says PeterGerretse, president and chief exec-utive of Vanderlande Industries.

The company provides turn-key materials handling systems toairports, distribution centres, andexpress service centres. The suc-cess of systems is possiblethrough the company’s innova-tion, extensive product range andtechnology.

Simulations done by the com-pany for various projects demon-strate the high level of technologyVanderlande utilises.

‘‘We simulate the whole pro-cess for the customer so that wecan see that the design will reallywork,’’ Mr Gerretse says.

This type of simulation wasemployed at Chek Lap Kok, and ishelping the company grow in themainland.

‘‘Last year we stepped up ouractivities in China,’’ he says.

Vanderlande has partneredwith Hong Kong-based EKPAC.Together they are establishing anoffice in Shanghai, also targetingthe growing distribution centremarket in the mainland.

Vanderlande has implementeda number of baggage handlingprojects in the mainland, includ-ing at Chengdu and Shenyang air-ports, and at Pudong Internation-al Airport in Shanghai.

Distribution centre projectsare becoming an increasingly im-portant market for the company.Vanderlande handled the distri-bution centres for China TobaccoCompany in Shenzhen, BeijingFood Distribution and Philipscomponents in Nanjing.

In developing countries, thedemand for baggage handlingsystems is increasing. Demandfor automated distribution cen-tres will follow at a later date.

‘‘What we see in Asia is thatalthough most of it is baggagehandling, more and more distri-bution centres are coming up,’’Mr Gerretse says.

Most people give little thought tothe cup from which they sip teaor to the disposable bowl thatholds their lunchtime noodles,but the nuances between the var-ious cups and bowls are signifi-cant to Eric Tick, of ThermowareEPS Machinery.

‘‘There is a standard seven-ounce cup, but I think we havemade over 500 different seven-ounce cups,’’ says Mr Tick, direc-tor of Thermoware EPS Machin-ery, which makes vertical andhorizontal expanded polystyrene(EPS) production machines.

He says a wide variety of de-signs, shapes and sizes of EPSproducts can be manufactured tomeet the specific needs ofThermoware’s clients.

‘‘For us, customisation is theonly standard.’’

Sturdy and lightweight, EPSproducts are suitable for applica-tions ranging from food contain-ers to packaging appliances andproviding insulation for homes,says Mr Tick. Thermoware hasbeen creating prototypes formanufacturing cups, containers,tubs and meat trays since 1981.The company is also a one-stopsource of utilities, machinery andtraining for the production ofEPS-ware.

‘‘The amount of material usedis very small, it is easy to recyclefor other purposes, and, contraryto popular belief, EPS is free ofchlorofluorocarbons [CFCs],’’says Mr Tick.

‘‘We are working on improvingthe environmental aspects of EPS,applying new technologies tomake thinner cups with the sameinsulation value, to use even lessmaterial and tool faster machin-

ery with lower energy con-sumption.’’

While the most common ap-plication for EPS in Asia is thedisposable instant-noodle bowl,the high-technology industry uses

EPS too, such as EPS trays for acompany’s automated microchip-packing line.

Thermoware received the firstCathay Pacific China Tradersaward in 1996.

As the heights of buildings rise inAsia’s increasingly modern cities,so do the safety risks involved intheir maintenance.

Altrex, a Dutch companyknown for its innovative accesssolutions for tall structures, is re-sponding to the growing need forsafer equipment to construct andmaintain skyscrapers.

‘‘The more creative that archi-tects become, the more carefullywe look for ways to handle diffi-cult access problems,’’ says Altrexsales director Frederick Kuijer.

‘‘We translate that into a solu-tion, which results in a product.’’

From scaffolds to hoists to er-gonomic ladders, Altrex since 1950has made equipment to reachsuch diverse pinnacles as the topsof tall buildings, 120-metre flag-poles and the elevated operatingmachinery of windmills.

Its modular stages can becustomised to suit almost anyshape or angle of a structure, forthe purposes of window cleaning,facade renovation and building,

roofing and other maintenancework.

Altrex’s modular stages, or sus-pended access systems, are espe-cially popular in Hong Kong andthe mainland, where the com-pany is represented by Wui LoongHoldings.

In keeping with its mission topromote safety, in Asia Altrex of-fers alternatives to bamboo scaf-folding.

It recently introduced a light-weight C-Stirrup aluminium scaf-fold that folds into two pieces andcan be carried by one person.

It has also introduced an inno-vative guarding pin that connectsthe parts of its modular stagemore easily.

‘‘We do our part to influencesome of the leading Europeancommissions to raise standards ofsafety, and we export these stan-dards to other countries,’’ says MrKuijer.

‘‘Our products have to be verysafe, because people’s lives de-pend on it.’’

ODME, the Dutch global supplierof optical media equipment andprocesses, views its Hong Kongoffice as strategic, with 70 percent of its recordable business inAsia and a decade-long presencein the region.

‘‘We were available from dayone that the CD came out, so wehave had a local presence all thetime,’’ says ODME chief executiveJan Snoep. ‘‘We have built upsome networks in that time to sellour products in this market. Busi-ness-wise, travel-wise, language-wise, it is a good place to be andwe have no intentions of leaving.’’

The Hong Kong office handlessales, service support, marketingand promotion for the entireregion.

Part of the OTB Group, whichincludes a high-tech engineeringdesign and development arm,ODME manufactures pre-master-ing, mastering, pre-recorded andrecordable replication equipmentneeded for the production of theCD, DVD, CD-R and DVD-Rformats.

ODME’s revenue is spreadequally between the East and theWest, but its recordable businessis mainly in Asia and growing,particularly in China, says MrSnoep.

‘‘The Chinese and Taiwaneseare very good at making a highlyefficient level of mass productand that is why recordable [me-dia] is the perfect product forthem,’’ he notes.

The company stresses co-op-eration in its business dealings inthe Far East, and taps into thetechnological expertise of its sis-ter-company, OTB Engineering,to customise solutions for its var-ied clients. Partnerships includeSamsung in Korea and the Indus-

trial Technology Research Insti-tute in Taiwan.

‘‘They might see one typicalformat for that area, and we worktogether to show that our ma-chines are able to make theirproduct. We deliver the techno-logy to produce their formats,’’says Mr Snoep.The company previewed its newDEX DVD-9 replication line forDVD-R at the Replication Expo2002 in Shanghai last August andwill be at the Expo this August.

The Netherlands is the second-largest foreign direct investor inHong Kong and the largest sourceof European investment. Tradebetween the two nations in-volves a full range of enterprises,from small entrepreneurs to someof the world’s biggest multi-nationals.

The first joint venture outsidethe mainland took place in TheNetherlands in 1980. Shippingagency Cross-Ocean BV, is a Sino-Dutch joint venture betweenChina Ocean Shipping (Group)Co (Cosco) and Royal Vopak NV.

Cross-Ocean links the sisterports of Shanghai and Rotterdam,and offers market knowledge ofEurope and China. The companyplans to open more shipping linesfor Cosco in Europe.

IHC Holland, a Dutch manu-facturer of dredging and founda-tion equipment, has had a rela-tionship with China since 1895.

IHC equipment gives soil value byremoving and transporting itfrom underwater to facilitateland reclamation.

IHC recently delivered the XinHai Long, a trailing suction hop-per dredger, to CHEC/ShanghaiWaterway Bureau.

‘‘It was the biggest one-timetransaction from the Netherlandsto China, says Joost van Sliedregt,president of IHC Holland.

The letter of intent for the XinHai Long was signed in the pres-ence of Prince Willem Alexander.

The Xin Hai Long is beingused in the Yangshan project todevelop Shanghai’s harbour.

Tianjin Dredging, IHC’s old-est customer in China, is todeliver the trailing suction hopperdredger, the Tong Tan, later thisyear.

Anglo-Dutch multinationalShell, which has more than acentury of experience in China

and Hong Kong, has investedUS$1.7 billion in the mainland todate.

Its largest project in China isthe Nanhai PetrochemicalsProject, a joint venture withChina National Offshore Oil Corp.Together they are building a pet-rochemicals complex in Huizhou,Guangdong, that is worth US$4.2billion and is due for completionin 2005.

Shell and PetroChina have ajoint venture agreement to con-struct the 4,000km West-to-Eastgas pipeline project, to exploregas in the Tarim Basin in XinjiangProvince and bring clean energyto the east coast.

Malcolm Brinded, one ofShell’s group managing directors,says the multinational’s mainlandmission is to provide China withclean energy solutions and prod-ucts designed to help alleviate thecountry’s pollution problems.

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Thermowarefinds successvia diversity

EPS provides a sturdy, light and insulating form, says Thermoware EPS Machinery’s director Eric Tick.

Altrex takes maintenance safety to new heightsAltrex sales

director Frederick

Kuijer says the

company has built

its mission on the

fact that people’s

lives depend on

the reliability of

its products

Vanderlande has holdof Hong Kong baggage

Vanderlande Industries president and chief executive Peter Gerretse.

Top Euro partner makes inroads

Media-equipment ODME buildson decade of experience in Asia

ODME chief executive Jan Snoep says Asia is a good market to be in.

Sponsored Section in co-operation with Discovery Reports

DESKSUP SCM,2003-04-30,3,SUP,6,FULL COLOUR PAGE - Wed Apr 23 16:32:52 2003 - Job2976229DESKSUP SCM,2003-04-30,3,SUP,6,FULL COLOUR PAGE - Wed Apr 23 16:32:52 2003 - Job2976229DESKSUP SCM,2003-04-30,3,SUP,6,FULL COLOUR PAGE - Wed Apr 23 16:32:52 2003 - Job2976229DESKSUP SCM,2003-04-30,3,SUP,6,FULL COLOUR PAGE - Wed Apr 23 16:32:52 2003 - Job2976229