“The local government as well as your customer is sceptical, if your solutions have not been implemented in China before. The Chinese clients are really curious and open to new ideas but want both financial and technical security,” says Claus Strøeh, CTO, Partner and Co-Founder at Nordic Technologies.
Nordic Technology just commissioned their first project in China. To convince their customer, Nordic Technologies drew up a solution that mixes Danish and local technology. This makes the costs more compatible with Chinese solutions and that secured the sale.
“China is a large country and there are huge economical differences between regions. This means that to most customers, Danish solutions are expensive compared to a solution from a local supplier. Therefore, keeping costs at an acceptable Chinese price level is important to start up sales in the market,” Claus Strøeh says
“We have imported Danish technology where it makes a significant difference to the overall project. But at the same time, we have included local technology at lower costs where possible to ensure that the final price is payable to our customer,” he continues.
Government withheld payment
With a signed contract, Nordic Technologies started working on the Jinan project. The company, however, experienced trouble with transferring money from China to Denmark.
”The Chinese authorities would not accept the wording in the section of the contract about payment. Therefore, they withheld the first payment from our customer,” Claus Strøeh explains.
To ensure the money transfer, Claus Strøeh consulted Ken Yan, Group Manager in Danish Water Technology Group China.
“Ken Yan helped us renegotiate and rewrite the contract to make it comply with Chinese authorities meaning that we were able to continue the project,” Claus Strøeh says.
Jinan as interesting as Denmark
With the first project accomplished, Claus Strøeh has high future expectations for the market.
“With about eight million inhabitants, Jinan alone is as interesting as the Danish market. You do not have to conquer the entire market at once. You can easily break your focus down to provinces or even municipalities – there is plenty of potential,” Claus Strøeh says.
He, however, expects to include Ken Yan in future sales processes. Partly because communication is much easier and effective when handled in Chinese.
“Ken Yan can communicate in a way that is much more meaningful to our customers because he knows the culture and the mechanisms of the Chinese water industry. At the same time, he understands our business and intentions. And with his technical and commercial knowledge of the water industry, Ken Yan can create relations that we would never be able to,” Claus Strøeh explains.
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About Nordic Technologies
Nordic Technologies A/S is a Danish company designing, producing and supplying tailor made solution for drinking water projects.
Nordic Technologies just finished the installation of a 2000 LPH plants for Lemon Lake, Jinan in China. The plant consists of a series of ultra-filters, nano-filters and a control system and will produce clean and safe drinking water to 3.000 people in this newly developed residential and commercial building complex.
Nordic Technologies has been a member of Danish Water Technology Group since March 2017