BOC plays international matchmaker for SMEs

China air quality company among those helped to find European partners

While banks provide many services, such as credit, loans and advice, one of their most important, if underrated functions, is introducing commercial opportunities.

Just ask the boss at Encanwell Environmental Science and Technology Co Ltd in Hebei province.

The company, which makes air pollution monitoring and alert systems, may never have formed a joint venture with Ventilairsec, a French positive input ventilation system manufacturer, without the matchmaking skills of Bank of China Ltd.

The two companies signed an agreement in June during a cross-border investment and trade cooperation conference in Tangshan organized by the bank and the Hebei government. The conference attracted nearly 200 companies from 22 European countries and more than 500 Hebei companies, allowing them to discuss business opportunities face-to-face.

Damien Terny, export manager at Ventilairsec, first met with Encanwell's executives last year at an event for small and medium-sized enterprises in Paris that was arranged by BOC and the French Finance Ministry.

"The interest for us at that time was to find the right partner in China to grow in this market," he says. "Before meeting the Chinese company, we heard many things about air pollution in China and thought it was important to learn directly from people in related industries in China. A few months later, we had the first agreement to work together."

As their businesses are complementary, the companies reached a deal to form a joint venture in Hebei to develop and produce smart indoor air quality control systems, with a total investment of $210 million. Their target clients include kindergartens, primary and middle schools, hospitals and hotels in China. The initial investment will be $35 million, of which Encanwell will contribute 70 percent.

Hebei Tangshan Pengfei Machinery Equipment Co Ltd has also benefited from BOC's matchmaking, reaching a 100 million yuan ($15 million; 13.6 million euros) agreement with a Serbian company to build production lines for white sugar packaging.

Through the Serbian partner's introduction, Pengfei Machinery is also now working with a German company on a 150 million yuan project to make intelligent parking systems. The first products will be exported to Germany this month.

"Our company is in transition to redirect part of our business from lifting equipment manufacturing to intelligent parking and automated warehousing system manufacturing. It's in accordance with the adjustment in China's industrial structure," says Liu Yunpeng, general manager of Pengfei Machinery. "BOC helped us make a breakthrough by introducing us to our first overseas client."

The company received a loan of 8 million yuan after reaching the agreement with its Serbian partner and is seeking more support from the bank.

Since 2014, BOC has held 23 cross-border matchmaking events for more than 7,000 SMEs from 52 countries and regions.

Chen Siqing, president of BOC, says: "Pushing forward cooperation among Chinese and Central and Eastern European companies is a crucial step in BOC's program to join hands with Hebei to promote structural reform, economic transition and coordinated development of the Beijing-Tianjin-Hebei region."

The bank will provide financial services to qualified companies during their entire business life cycle to help them to develop cross-border investment and trade.

jiangxueqing@chinadaily.com.cn

(China Daily Africa Weekly 07/02/2016 page27)