Hydropower firm taps overseas market
( 2002-01-07 10:40 ) (1 )

China National Water Resources and Hydropower Engineering Corp (CWHEC), the nation's largest hydropower construction company, picked up fat gains from the overseas market last year, according to a company official.

The company clinched eight construction contracts worth US$233.2 million in overseas countries last year, more than doubling the previous year's US$113 million.

It secured deals for irrigation and road construction in developing countries, including dam in Iran and a channel and port renovation project in Viet Nam.

The company, which has been involved in the construction of more than 80 per cent of the hydropower plants in China, said it has increased efforts to tap the overseas market in response to the challenges posed by China's entry to the World Trade Organization (WTO).

"It is inevitable for us to go abroad to participate in international competition, which is vital for our success," said Guo Jiantang, general manager of the company.

Guo said CWHEC's business volume in foreign countries now accounts for a quarter of its total operation, hitting a historic high.

Zhou Xi'an, a senior official with the State Development Planning Commission, said the central government encourages construction companies to tap the international market to alleviate overproduction in the domestic market and to reduce unemployment pressures.

Zhou said the government would support the expansion of construction companies in foreign countries with favourable policies.

Zhou warned, however, that Chinese companies should try to co-operate in international competition and avoid fighting against each other.

Guo said the experience of CWHEC has demonstrated the importance of solidarity.

When it first pursued overseas contracts, the company was relatively unknown because its 17 subsidiaries separately entered the international market, undermining the competitiveness of the company as a whole.

In recent years, however, the company has spared no efforts to integrate its resources and talents in bidding on overseas construction projects.

The strategy has paid off with CWHEC's growing prominence in the international market.

The company was named by the renowned Engineering News Record magazine as one of the world's largest engineering construction contractors in 1999.

CWHEC now plans to consolidate its position in the Asia market and make more efforts to tap the African market. It also aims to gain a foothold in the European market.