CMEC: International contractor maps strategic plan
Celebrating its 35th anniversary, China Machinery Engineering Corp has grown from a trading company to an international contractor involved in trade, R&D and services. It was listed in Hong Kong on Dec 21, 2012. China Daily’ reporter
inte r v i ewed the company’s Chairman and President as the company prepared its strategic plans for the next five years. As one of the first large trading companies in the nation, what is CMEC’s vision after its listing in Hong Kong?
Sun: The vision of CMEC is to become a leading global construction contractor and service provider.
In the next five years, the company will adjust its service structure, develop new services and shift its development model to find new competitive edges.
CMEC will pay equal attention to the international and domestic markets, carrying out balanced strategies to integrate resources.
The company’s global reach will provide support to its expansion in the both markets.
Beside its headquarters in Beijing, the company sees three major markets inside China — East China, Central China and the GuangdongHong Kong region.
Beijing is the center of decision-making and control. Shanghai is a base for trading and logistics.
Changsha is an R&D center. And Hong Kong and Shenzhen are a focus for financing.
In the future, CMEC will extend its industry chain in infrastructure construction and make diverse investments. What will be the main businesses of CMEC? What corresponding organizational structure do you have?
Zhang: In the coming five years, CMEC will regard project contracting, trade and investment as its three major sectors.
It will focus more on businesses like energy, telecommunications and transportation.
In the contracting sector, we will promote localized and professional management, and employ various ways of financing.
In the trading sector, we will develop new technologies and products with high added value.
The investment sector will be an emerging growth highlight for CMEC.
Under the condition of controllable risks, it will acquire design institutes and companies worldwide.
It will quickly build up its own capacity.
At the same time, the company will pay attention to the electric power industry.
To improve efficiency, CMEC reduced its number of administrative organizations from 18 to 14 while new departments responsible for financing and capital management were founded to expand the investment business. What efforts will the company take to meet those strategic goals?
Sun: There will be six supporting systems: Closedloop management, multilevel controls, internationalized human resource management, diverse risk controls, an information system that helps integration of many services and an enhanced corporate culture. What competitive edge do you have to meet the demands of investors and compete with your rivals after being listed?
Zhang: CMEC boasts distinguished capacities in marketing, business operations, financing services, project management and integrating resources in the global scale.
We have six major advantages: A good reputation established over the past decades, the capability to provide one- stop services, a global partnership and service network, rich experience and in project management and operations, professionalism in our employees, and strong abilities of capital operations and financing.
In the future, the company will maintain its advantages expanding market share and management innovation, and at the same time improve its industry chain and the coordination of multiple businesses. What is the corporate culture of CMEC?
Sun: With the pursuit of realizing ideas, CMEC has established a corporate culture that features innovation, competition, integrity, dedication and harmony.
The growth of CMEC is an epitome of China’s reform and opening up over the past years, and the company itself is a flagship in China’s machinery industry.
Both the company’s future strategies and corporate culture should serve its business operations and profitability.
I believe that CMEC will become a world-leading contractor and service provider if we put the strategies into practice.
As an important subsidiary of China National Machinery Industry Corp, CMEC will attract more resources from the parent company to complete its industry chain.