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NHI Headlines

Fangda Group NHI: Great Achievements Made Under “One Belt, One Road” Strategic Market

Published:2020-04-14

Since mixed ownership reform from April 30th, 2019, NHI has been continuing to explore the international markets, particularly clients along the “One Belt, One Road”. By taking the strategy of going out and bringing in, NHI brand regained the supports and trusts from overseas clients and constantly extended in international markets.

Fresh Vitality Gained through Mixed Ownership Reform, New Breakthrough Pursued in Markets

As a leading backbone enterprise in Chinese heavy machinery manufacturing industry, NHI had created glories in market. But in recent years, the survival and development of NHI were extremely difficult, restrained by obsolete ideology, backward management and long lasting huge debt burden.

On April 30, 2019, following the policies of revitalizing and deepening the reform of state-owned enterprises in Northeast China by the Party Central Committee, and under the right guidance and promotion by Party Committee and municipal Government of Liaoning and Shenyang, NHI had successfully accomplished the judicial restructuring and mixed ownership reform, and Liaoning Fangda Group had officially become the largest shareholder of NHI, which marks a new era of development for NHI.

Liaoning Fangda Group, a well-known private enterprise started from Liaoning Province and now distributed around the whole nation of China, mainly engaged in carbon, iron & steel industries and medical & pharmaceuticals services as its main business, and heavy machinery manufacturing, commerce, trade and real estate as its complement. During the rapid development of Fangda Group, Mr. Fang Wei, the chairman of the board of Fangda Group with the belief of "back to hometown to invest and contribute to hometown", decided to participate in the judicial reforming and mixed-ownership reform of NHI after participating in the mixed reform of Northeast Pharmaceutical Group Co., Ltd. and Zhongxing Shenyang Commercial Building Group.

As the strategic investor, Fangda Group brought fully market-oriented system and mechanism, abundant advantages in capital resources and new management and development concept into NHI. Through a series of measures, such as the reconstruction of operation system, the sorting of management system, the upgrading of technology research and development, the recovery of market resources, and the comprehensive renovation of existing shortcomings, NHI has been vigorously promoted to deepen the reform, enhance the vitality and market competitiveness, which makes NHI renewed with new vitality, and employees motivated with innovation creativity.

“Enjoy the Shade under Great Trees”, Confidence Gained through Own Strength

After the mixed ownership reform, NHI frequently participated in high-end equipment exhibitions, demonstrating the "New NHI" to all, which laid solid foundations for consolidating customer relationship, exploring potential customers and expanding domestic and overseas markets. India has always been an important overseas market of NHI EPC projects. Since 2010, NHI has made a great number of power plant CHP and bulk material handling EPC orders with BUTIBORI power plant, SASAN mining and ROSA power plant. However, due to the bottleneck in the development of enterprises and the lack of contract performance capacity, the international reputation of NHI had been greatly impacted. In January 2020, with a long business and technical negotiations, NHI successfully signed the contract of QL2000.45 reclaimer with Arcelor Mittal Nippon Steel India Co., Ltd. after recombined by Fangda Group, and once again entered the Indian market.

The signing of this contract experienced great difficulties. India, a big country in South Asia, has a boost economic development. The domestic market of India is animated with severe competitions. The requirements for product quality and delivery are extremely strict, but with very low price and high requirements of post-sale services. However, even in such fierce market competition, the owner of project still actively invited NHI to participate in bidding, which originated from the understanding and trust of Fangda Group. Learning that NHI had joined Fangda Group through mixed ownership reform, the owner of project had performed a thorough research to NHI, by which NHI was invited to the bidding.

During the critical moment of negotiation, the former owner was acquired by the ArcelorMittal Nippon Steel India Ltd, the world’s largest iron & steel producer. The original cooperative parties in many projects had been changed after reviewed by the new owner. The contract of NHI regarding QL2000.45 reclaimer was also involved. However, through a research to Fangda Group NHI, ArcelorMittal Nippon Steel India Ltd finally approved the results of former negotiations, and launched subsequent negotiations. Through the unremitting efforts made by marketing team, NHI not only signed the contract with value of 7.42 million Yuan, but also got the friendly contract terms with the price higher than the lowest bid under such severe competition in Indian domestic market, which was beyond expectation. ArcelorMittal Nippon Steel India Ltd expressed that more can be done between both parties, and expected to extend cooperation in more fields and projects.

Marching Forward, Seize the Moment to Start New Chapter

NHI has regained fully recognition by the international market simply because of the strong support by the Fangda Group. NHI has completely solved the constraints of capital, bank guarantee and other factors.

In July 2019, NHI invited more than 70 overseas agents from 16 countries to attend the first overseas agent conference held in Shenyang after NHI's judicial reorganization and mixed ownership reform, which restarts the prelude of international marketing. With a brand-new look, NHI pressed the "fast forward" button on the journey of development the international market, and had received great news. After signed the contract of SHRI MAHAVIR FERRO ALLOYS PVT.LTD 600,000t/a pelletizing project, NHI successfully signed a contract with Kazakhstan FCL, comprising travelling grate, rotary kiln, annular cooler, disc feeder as well as other auxiliary equipment in 600,000t/a oxidation pellet plant. The contract value was over 8.65 million U.S. dollars. On March 1st, 2020, NHI successfully signed the EPC contract for Port and land conveyor systems with PIBT in Pakistan, with total contract value of over 30 million U.S. dollars. The signing of these contracts had rapidly improved the international market influence of Fangda Group NHI, greatly boosted the morale of the staff and strengthened the confidence of market development.




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