Dow Chemical CEO Lee Wai-shing.
Capital-intensive energy giant - Dow Chemical is willing to continue deep plowing the Chinese market to share the fruits of China's development
There are news reports that some multinational corporations have withdrawn their low-end manufacturing operations from China in the face of rising labor costs in China and the fierce competition from Chinese rivals. In this regard, Li Weicheng, chief executive of Dow Chemical, (Andrew Liveris) firmly stated: 'Dow will never do that.' For example, Matsushita stopped all television production in China in 2015, ending 37 years of operations in China.On the merits of some multinational corporations in China When investment became more cautious or chose to relocate factories to neighboring countries, Lee Wai-shing said Dow was going in the right direction.
He said: 'These multinationals have moved factories to Vietnam or the Philippines in order to reduce costs, but Dow is different from them, they are labor-intensive, and we are energy and capital-intensive companies. R & D activities are on the rise in China, and we are also actively involved in. Dow has long insisted on investing in various types of intellectual property that was invented, created and marketed in China and there is no doubt that such investments will continue to grow.
Lee Wai-cheng suggested that the Chinese government should continue to push forward the business of mass entrepreneurship and innovation of many people and encourage investment to flow to high-tech areas, boosting China's steadily rising position in various industrial value chains.
He said: 'Now that China can independently develop its own intellectual property rights, Dow is very welcome because the standards and thresholds will be raised and only a handful of companies will be able to invest in R & D-related technologies. In the past 10 years, Dow has developed rapidly in China and surpassed its peers and we will never leave China. '
Recently, Li Wei Cheng introduced China Daily Dow strategy, business opportunities and business prospects. The following is an excerpt after the interview:
Q: Dow business operations in China last year is progress or regress?
A: The company's sales have increased because Dow's solution fits the needs of the Chinese market.
As China is vast in size, it has significant differences in different regions, markets and industries, so both high-tech and manufacturing industries as well as traditional forms of economy co-exist and China should be at the forefront of these fields, especially in the field of environmental protection.
Dow uphold 'integration, innovation' strategy, has been able to adapt well to China's soil, which is why we are always seeking to develop in China because of our strong research and development in China. Shanghai Dow Center has 700 scientists, according to the customer Demand for the development of China's solution.
Geographical diversification is also a big goal we are pursuing. We not only open up markets such as the Bei Shang Guang metropolitan area but also set up business centers in Huaxi, Huazhong, Northeast and Northwest China so that we can have unlimited access to local markets and provide customers there on-site support.
Q: What business opportunities do you think the 'One Belt, One Road' advocated by China will bring?
A: The Belt and Road Initiative helps to tap the tremendous business opportunities in China, especially in the underdeveloped hinterland.
For example, in western China and northwestern China, large-scale urbanization is continuing and technological progress drives poverty-stricken people out of poverty and thereby generating demand for advanced technologies and products.In order to provide these advanced technologies and products, We naturally need to create a factory locally.
Dow's expertise is precisely what we need to address infrastructure, housing, transportation, food and water needs and we are in the process of building a new coating plant in Chengdu that, when put into operation, will provide the vast majority of the buildings and other buildings in the western part of China Materials and roads to provide high-tech coatings.
The Dow Chemical Xinjiang Business Center opened in Urumqi, the capital of the Xinjiang Autonomous Region, in 2015. This is a positive move by Dow to respond to the Chinese government's 'One Belt and One Road' strategy. Through seeking partners in the northwestern region and the Central Asian market, , Our business in the northwestern region has rapidly expanded.
Shanghai Dow Center staff Shanghai Dow Center is Dow's business center and innovation center in the Asia Pacific region.
Q: At present, Dow has a total of 10 business centers and 17 production sites in the Greater China region. Is your company planning additional investment?
A: Yes, I think China is consistent with the strategic goal of Dow: Money should not continue to be invested in the original factory but rather should be invested in human capital to provide China with the means to improve living standards, food safety, water management, Continued urbanization and efficient transport initiatives to design a better solution.
We invest heavily in R & D in the past, in the future, and in the future. "Dow's goal is not to build large chemical plants but to build high value-added production lines and invest in human capital to help clients use modern technology.
Q: In your opinion, what impact will economic conditions have on Dow's business in China?
A: Dow is pursuing a sustainable business strategy. We are good at using technology to solve various problems and efficiently provide solutions to our customers. Therefore, Dow's future growth is not a problem. In fact, our company has had 18 consecutive quarters Earnings growth, 14 consecutive quarter sales growth.Although some people say that the world economic growth is declining, but we actually do not feel this point, and even we need to increase production capacity.
Q: How does your business benefit from globalization?
A: Dow long ago sought global growth, and for an international company such as ours, globalization means localization with great efficiency. We employ a large number of local staff and they are a good illustration of us We are not shy about what the word 'globalization' means, and we are a big global company, and we welcome the globalization.
Q: What is your biggest achievement in China and what is your business expansion in China?
Dow's biggest achievement is in the area of human capital, we have a large number of gifted and talented employees, and we recruit staff from institutions of higher learning who are willing to work for Dow.
We are very attractive to our people because we have a great working experience and our staff is both energetic and energetic and has taken Dow China to the next level.
Q: How do Dow and its Chinese counterparts compete?
A: Other foreign multinationals may have similar strategies, but our newly developed business operations are unique, that is, partnerships that innovate and combine customer issues with solutions. Candidly, competition Opponents may do the same, but we are the most successful of them, so I'm definitely not worried about competition.
We have technical solutions based on China's special conditions, so other foreign companies can not replicate and we set a very high barrier to entry.
Q: What is the scale of Dow DuPont after the merger in China and what are the major business activities?
A: Whether in China or elsewhere in the world, the scale will be about the same nowadays DuPont's equal merger with Dow Chemical is somewhat complicated and the scale is not a problem because after the merger, it will also be split into three separate companies, A company focused on materials science, led by Dow; a farm-focused business and a specialty product company led by DuPont.
The merger of the two companies is not long, only a short period of 18 months, especially considering DuPont's history of 215 years, Dow also 120 years.
Q: What do you think is the most important leadership accomplishment?
A: A new type of leadership is called 'followability.' In the past, leadership simply meant managing ability, but things changed a few decades ago, in which our team led the team to lead and follow on its own Is called 'tracing force', 'tracing force' means that one must understand the macro and micro conditions.
Q: What are your hobbies? How do you pass the free time in China?
A: I like to spend time with my family, but I basically have no free time.I like reading, getting obsessed, and studying very fast.Maybe one day I will start writing because I also like to write articles, and Wrote well.