Chint pro­motes M&A strat­egy

Com­pany rides ex­plo­sive growth in international busi­ness to ex­pand be­yond elec­tri­cal equip­ment

China Daily (Hong Kong) - - BUSINESS - By SHI XIAOFENG in Hangzhou shixf @chi­nadaily.com.cn

The Zhe­jiang-based Chint Group, China’s lead­ing in­dus­trial elec­tri­cal equip­ment and new en­ergy en­ter­prise in the pri­vate sec­tor, is push­ing for­ward its over­seas merg­ers and ac­qui­si­tions.

At the same time, it is forg­ing co­op­er­a­tion agree­ments on pro­duc­tion ca­pac­ity and equip­ment man­u­fac­tur­ing along the Belt and Road Ini­tia­tive.

“We are go­ing to do more ac­qui­si­tions to com­plete a whole in­dus­trial chain,” said Nan Cun­hui, chair­man and founder of Chint Group.

Founded in 1984, Chint Group has seen its busi­nesses ex­pand over the years, from elec­tri­cal equip­ment to power trans­mis­sion and dis­tri­bu­tion equip­ment and ser­vices, in­stru­ments and me­ters, build­ing ap­pli­ances, pho­to­voltaic power gen­er­a­tion and equip­ment man­u­fac­ture.

In Oc­to­ber, the com­pany signed a com­pre­hen­sive strate­gic co­op­er­a­tion agree­ment with Ve­o­lia, the world’s largest en­vi­ron­men­tal ser­vices provider, cov­er­ing al­most all of Chint’s in­dus­trial chain across new en­ergy, power trans­mis­sion and dis­tri­bu­tion.

Chint’s international busi­ness has seen ex­plo­sive growth for a year, es­pe­cially in the field of new en­ergy.

For in­stance, Chint’s so­lar com­po­nents fac­tory in Malaysia started mass pro­duc­tion in Jan­uary. It is the com­pany’s third com­po­nents fac­tory af­ter those in China and Ger­many.

In March, Chint com­pleted two PV power plant projects in Thailand. It also drew up a plan to build one more com­po­nents fac­tory in the coun­try to ex­pand its busi­ness.

So far, Chint has es­tab­lished fac­to­ries, R&D cen­ters and mar­ket­ing branches in about 80 coun­tries in Europe, North Amer­ica, Rus­sia, South Amer­ica, the Mid­dle East and the Asia-Pa­cific re­gion. It con­structed more than 30 over­seas ground PV power plants, and sold its prod­ucts to over 130 coun­tries and re­gions.

Its PV busi­ness grew by 80 per­cent last year; its power elec­tron­ics prod­ucts sec­tor in the North Amer­i­can mar­ket grew by 168 per­cent; and the do­mes­tic and over­seas gen­eral con­tract busi­ness grew by 425 per­cent.

Ac­cord­ing to Nan, Chint’s chair­man, the com­pany has ben­e­fited from its ac­qui­si­tion of Con­ergy, a Ger­man PV com­pany. At the time, the lat­ter was on the verge of bank­ruptcy. Chint ac­quired its com­po­nents fac­tory in 2014.

“We had a very ef­fi­cient cir­cu­la­tion net­work. We sold the prod­ucts from our Ger­man fac­tory to the Asian mar­ket. The fac­tory runs well now,” said Nan.

The ac­qui­si­tion pro­vided a chance for the Nan-led Chint to in­tro­duce the Ger­man fac­tory’s man­age­ment sys­tems and au­to­ma­tion pro­duc­tion lines into its man­u­fac­tur­ing bases in China, South Korea, Ja­pan, In­dia, the US, Spain, Thailand and Malaysia.

This helped to in­crease their pro­duc­tion ef­fi­ciency. “Now, six en­gi­neers can op­er­ate the whole process at one work­shop, whereas just two years ago, we had to use dozens of work­ers to com­plete all work,” said Lu Chuan, CEO of Chint New En­ergy, a sub­sidiary of Chint Group.

“We can even mon­i­tor the man­u­fac­tur­ing process at fac­to­ries in dif­fer­ent coun­tries from our head­quar­ters.”

To meet the needs of do­mes­tic and over­seas mar­kets, Chint Group fun­neled 3 to 10 per­cent of its sales rev­enues into R&D each year. In its high-end equip­ment sec­tor, the R&D in­vest­ment reached 50 per­cent of its sales rev­enues.

Last year, Chint launched China’s largest PV power plant project, a 2 bil­lion yuan ($294 mil­lion) 200-MW light project to com­ple­ment lo­cal agri­cul­ture, at a moun­tain­ous area in ru­ral Quzhou, Zhe­jiang prov­ince.

We can even mon­i­tor the man­u­fac­tur­ing process at fac­to­ries in dif­fer­ent coun­tries from our head­quar­ters.” Lu Chuan, CEO of Chint New En­ergy, a sub­sidiary of Chint Group

SHI XIAOFENG / CHINA DAIY

An engi­neer mon­i­tors the au­to­mated pro­duc­tion line at Chint Group's pho­to­voltaic com­po­nents fac­tory in Hangzhou, Zhe­jiang prov­ince.

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