Chint Group confirms it’s circling targets abroad
The chairman said that in the current year Europe and the United Kingdom would continue to be Chint Group’s main destinations for mergers and acquisitions, followed by the United States and Japan.
“Most developing countries and regions along the Belt and Road are still at the early stage of industrialization, and they have strong demand for our high-end products,” said Nan. “We will definitely set up factories in these countries this year. ”
The company has already established factories in countries along the Belt and Road including Thailand, Malaysia, Pakistan, Iran and Egypt.
In February Chint Group opened its first factory for lowvoltage switchgear manufacturing in Cairo, in the company’s first move abroad in 2017.
“We need to respect local culture when engaged in M&As or making direct investments,” Nan added.
Alan Wang, a partner in international law firm Freshfields based in Beijing and Shanghai with extensive experience in M&As, said there were a number of key challenges facing Chinese investors abroad.
He said these included a lack of understanding of local laws, particularly related to labor, environment and taxes; inadequate infrastructure, particularly power supply, transport and logistics; a lack of political stability, bureaucracy and corruption.
To date, Chint Group has established factories, research and development centers and marketing branches in about 80 countries and regions in Europe, North America, Russia, South America, the Middle East and the Asia-Pacific region.
The group says it has constructed more than 30 photovoltaic power plants overseas and sold its products to over 130 countries and regions.