Chinese Enterprises Are Looking For "Localization" Key Overseas

Over the past 20 years since reform and opening up, Chinese enterprises have been able to gain foothold and development in unfamiliar countries. Apart from these employees, they can endure hardships and struggle hard, and more importantly, these enterprises are constantly seeking the key to localization and closely combining their own development with local social and economic development.

Recently, our correspondent went to Nigeria, South Africa, Sultan, India, Australia and other countries, and interviewed Chinese enterprises struggling in a foreign country.

Joint venture is the best "localization". It can quickly integrate local production factors in a short time. Localization is also called localization, which refers to the degree of integration of foreign enterprises into the local economy and society.

For example, a considerable number of local workers, engineers and technicians and management personnel have the cultural background and economic background of local enterprises.

In combination with more than 20 years' joint venture experience in qonna iron mine in Australia, Sinosteel has acquired 50% of the South African famous ferrochrome processing enterprise in the northern part of South Africa, which makes the output of chrome ore in South Africa more than 300 thousand tons.

"This is a remarkable achievement, but if there is no joint venture and cooperation with South Africa, the production and operation of Sinosteel in South Africa will be unsustainable."

Regarding this, Nan Fengzhi, general manager of South Africa Company of Sinosteel group, has deep feelings.

In the machine's roaring Sam can factory, reporters saw that the belt conveyor pported the chromite ore to the gravel furnace and incinerator methodically, and the red chromite water quietly flows into the trough.

Local workers from South Africa operate orderly.

Speaking of his work, the director of production, cherry, is very proud: "the company has worked with famous multinational companies, and I am now a member of the international cooperation company."

Cherry is an engineer from Durban University in South Africa.

At present, there are more than 1000 local staff in South Africa, and less than 10 engineering and management personnel in Sinosteel.

All this is the result of joint ventures and cooperation.

Zhong Jianhua, China's ambassador to South Africa, said: "from the experience of Chinese enterprises going abroad at the present stage, joint venture is the best" localization ", which enables the enterprises to go out into the local economic development quickly.

In the process of localization, the form of property rights can be diversified, and the localization of wholly foreign-owned enterprises may take longer. Joint ventures are the wedge of localization of enterprises, which can effectively integrate local production factors in a short time, organize production quickly and realize the benign operation of enterprises.

The joint venture has deepened the localization of the enterprises going out and brought bright prospects for the enterprises going out.

According to Huang Tianwen, President of Sinosteel group, in 1988, the Sinosteel Australia company was established, together with the Australian reto company, to develop the qalong iron mine in Western Australia.

The iron mine was put into operation in 1990. Over the past 10 years, with the cooperation of the joint venture company, the production and operation of the iron mine has been in good condition, providing stable employment opportunities for Western Australia, and now it has created a total of more than 200 million Australian dollar tax revenue for the local government, creating a total GDP of 10 billion Australian dollars for the local government.

Deputy Minister of industry and resources of Western Australia said: "joint venture and cooperation have promoted the mining of the iron mine.

It is also a cooperative and joint venture that closely links the Western Australian economy with China's economy. "

The localization of technology output and capital output has rapidly enhanced the influence and profitability of enterprises. HUAWEI has a long-term concept for Africa's communications market: to be a reliable partner in the African communications market, to provide advanced communications technology for Africa, to train local communications talents, and to enrich people's lives through communication.

At the same time, HUAWEI has rapidly improved its influence and profitability through localization.

HUAWEI entered the African market in 1996, and its products have been used in more than 40 countries. In 2006, the sales volume of HUAWEI Africa reached billions of dollars.

HUAWEI has realized the localization of enterprises in the technology export.

In Africa, HUAWEI employs more than 2500 people, 60% of whom are local employees.

HUAWEI will be divided into two zones in 32 branches in Africa, one in southern Africa, one in South Africa and one in the Middle East and North Africa, with headquarters in Egypt.

Every day, there are more than 1000 HUAWEI service support engineers, close to customers, providing fast response to demand and reliable after-sales service for local communication networks.

Technology output should rely on capital output as backing.

Technology export plus capital output plus localization will rapidly improve the influence and profitability of enterprises.

HUAWEI is like this, such as PetroChina, China railway construction, Sinosteel and ZTE.

In October 2005, CNPC acquired PK oil company of Kazakhstan.

At the beginning of the operation, PK has 4132 employees from different countries, nationalities, educational backgrounds and regions. There are many differences in terms of language, religion, life, diet and so on.

To ensure smooth handover and successful operation of PK, CNPC actively advocates the concept of "mutual appreciation and enjoy work", promoting rapid integration of different cultures, and strengthening employees' sense of belonging, honor and loyalty to enterprises.

A Kazakhstan employee passed the international accountant qualification examination, and the head of the coordination and leadership group of CNPC Kazakhstan congratulated her by mail, and arranged the personnel department to track its work arrangement.

Not long ago, Sinosteel invited India artists to visit China, which played a harmonious role in the international cultural exchange of China's going out enterprises.

The official of the Chinese Embassy in India told reporters: "from the experience of Chinese enterprises in India, technology and capital are twin sisters. The higher the degree of localization, the better the development of enterprises."

The localization of enterprise culture, which indicates the rapid development of enterprises, is the realm of enterprises' pursuit of going out. "Leaving their hearts in the moroga community" is an important part of the corporate culture of Sinosteel South Africa chromium company.

The morroga community is one of the poorest communities in northern South Africa. Almost half of the villages in bugatsky have never read a book and have a high degree of illiteracy.

Therefore, to create a stable income channel for the mroga community in the ASA chrome mine of South Africa Company, has become a major event in Sinosteel's localization.

No. 1 and No. 2 furnaces of Sinosteel produce large amounts of slag every year, and there are 4% to 5% ferrochrome content in slag.

When reporters went to interview in July this year, the construction of the ferrochrome recycling plant which invested 30 million rand (South African currency, 1 Rand or about 1 yuan) is coming to an end, and plans to go into operation in August.

According to the BOT protocol, 5 years later, the Moroga community will receive 1 million Rand fixed income every year and get 60% of the total ferrochrome recycling plant.

The people in the moroa community are talking about the good of Sinosteel.

Miss nuomti, manager of Human Resources Department of Sinosteel ASA company, said that in recent years, Sinosteel South Africa chrome company has purchased a set of football equipment for the Manchester United Football Club and leveled the court. Donated 1 electric motors for the Maputo and Montgomery Wiln gardens, installed storage tanks and pipes, provided safety shoes and chemical fertilizers, and trained AIDS prevention work.

Respecting local customs, making friends with local people and solving the living difficulties of local people are another aspect of localization of Chinese enterprises.

When I first arrived in Sultan, Zhao Changqing, the supervisor of the China Petroleum 9721 team, was unfamiliar with the local culture, folk customs, geography and language. The local employees did not see this Chinese boy in his eyes.

Zhao Changqing worked hard in the daytime and studied Arabic and native languages at night.

Today, local employees have made him a good friend, chatting about their families, breaking their wrists, singing and dancing.

In 2006, China Railway Construction Zhongtai group and CITIC Guohua company respectively formed a consortium in the name of their respective companies. They took the Algeria expressway construction project. The consortium made a solemn promise to "build technical schools for the local, train mechanical operators and equipment maintenance workers, and organize highway operators to train in China".

What keeps Tanzania people moving is that a water supply project in China's iron construction will solve the problem of drinking water that plagued 540 thousand people.

The local people are anxious to think about what the local people think.

The localization process of Chinese enterprise culture is the process of taking root, sprouting, blooming and producing in the locality, which indicates the great development of Chinese enterprises overseas and the pursuit of enterprises to go abroad.