Interview to José Ignacio Artamendi, director of the CSMC and of the Office AFM-China
20 April 2012
The Hispanic Institute Chinese of Professional Learning of the Machine-tool of Tianjin – China (CSMC) was inaugurated in November of 2003 and is an excellent platform for those companies interested in realising actions in China, especially in the zone of Beijing-Tianjin, one of the main industrial areas of the country. Besides Tianjin is one of the four cities of provincial administrative level in China, beside Peking, Shangai and Chongquing. In April of 2011 realised the transfer of the CSMC to some new installations in the same city of Tianjin that duplicate the available surface of the Institute.
The CSMC has the codirección of José Ignacio Artamendi, that after nine years in the institute contributes his experience for the support of the Spanish companies in China. From 2008, AFM has a department devoted to loan service to companies associated with a team of four people formed by the own Artamendi, an assistant with excellent command of the Spanish, an expert in moulds and an agent of projects. In addition to being a platform of learning for personnel of Chinese companies related with the mechanical manufacture, the CSMC gives services of learning to Chinese personnel of Spanish companies in China, so much in his installations as in the ones of the customer in any place of China. In the CSMC,
The Chinese market is an opportunity or a threat?
Chinese has arrived to be the greater consumer, producer and importing of machine-tool of the world. His domestic production stands out for now by quantity, and no so much by the technology and innovation that contributes, although they go it incorporating of progressive way.
Often it has the perception that Chinese is an immense market, far and of difficult access Is like this in reality?
In fact is an immense market, but also are them the European or the like this expressesed American. China seems more to a continent that to a country. I think that it is necessary to situate regarding the reality of the Chinese market and know in depth his different areas, the characteristics of each region, of each sector. I understand that what sucede is that there is an important desconocimiento of the country.
The geographic distance, although it operates, do not think that in these moments was the most notable. Yes I agree in the complexity that involves to tackle it, since the desconocimiento of the language and the difficulties of communication are the elder hándicap, as well as the habits and the ways to do, together with the importance of the relations that in a lot of cases minimise from the western perspective. We can not project our way to do neither to think in a country that has opened to the world does very little time, and that therefore it has some very different characteristics that it is necessary to understand.
There is market for the Spanish manufacturers of machine-tool?
Himself. It is clear that any one can not tackle this market, but there is distinct strategies that do that it can be accessible to more realities of which a priori can think. The dimension matters and our companies are of size rather small, but on the other hand have technology to contribute to this market. It is necessary to look for the form to connect; it is important to know present our value added in that that transfers , the knowledge, utilities, applications, etc. and not to remain in a mere economic transaction.
In general, how they see in China the Spanish technology?
This is a more complex question to answer. It is not easy that understand . Of an a bit brusque way could say that they do not have an image of technology of our country, although already they are giving advances in this regard. They know us by other things that are the commonplaces of always, bulls, football… but that it is the reality and it is necessary to take it into account and do that it play in favour. I consider that it is missing us still create the image of Spain like technological country that afterwards the companies of individual way can contribute to reinforce. It would be important that from the institutions contribute to the generation of an image of industrial and technological country, as it does it the Association AFM, supporting in the companies that are leaders in his segment of market.
This country is the main producer, consumer and importing of machines-tool of the world. If a company of the sector decides by a global market, is China a necessary bet?
Nowadays internationalisation associates to globalisation, and all the companies are forced to pose to be competitive as a whole. I understand that it is clear that it is a market with which it is necessary to explain, and if possible, be. Another question is the way to do it. It is here where it is necessary to work, so much to level of companies (alone or generating alliances) institutions, etc. Is desirable to approximate with a mentality to share, no only of business, that will come later. Anyway and with general character, a company that precie to be truly competitive has to be in this country, as not being means to be out of the world-wide market.
And it gives the contrary case (companies that ‘desexternalizan' and go back to Spain)?
On my part do not have references of companies that know that they go back . There is of course, cases of success and cases of failure. This is law of life and the employers know it and manage these situations.
From the Hispanic Institute-Chinese, how help to the companies to go in in the Chinese market?
The Institute supposes on the one hand a reference for those companies with first contacts in China and that somehow want to know experiences having an interlocución of landing for calling it somehow. For which decide to test through the Office AFM-China have a complete battery of services that put to his disposal of a transparent and personalised way. I think that it is the main value of the Institute and the Office AFM-China. We are a flexible platform of service, with strong capacity to activate institutional contacts, indispensable facet in this country.
For example one of the last activities that are piloting is a platform of Service of Technical Assistance that leads AFM for five of his companies associated.
Which are the first steps to give to install a plant of production or a commercial office in China?
Firstly have clear which are the aims, of here will go out the way of implantation more convenient, the most ideal location, the research of partners, etc. Is important that really was a strategy of company, that is to say a solid bet, China does not admit half inks. For this it is necessary to understand the country, support in people connoisseur of said reality, of the cambiantes normative legal of the country. It is paramount also that the people that go to carry out the project are personal of confidence and that internalise well the project.
It is necessary to do an evaluation of market and positioning of the product at stake, as well as about his possible future consolidation. Analyse if it goes to give answer to the local demand or if it goes to export to determine the location and the most suitable logistics, of agreement to the eases that this can contribute in the future. In addition to studying strategies of alliances with other companies sharing resources, it is necessary to know the structural cost and especially the efforts to realise in an initial stage where the results no always accompany to the expectations. In summary contrive very clear, patience and perseverancia.
What characteristic business Chinese have adapted more easily the installed Spanish companies in this country? It has sucedido to the reverse, this is, have learnt something the Chinese employers of the Spanish business philosophy?
Speaking of Spanish implantations, first would be necessary to concretise the model of implantation of the companies since the experiences are very different, but in general terms speak of Chinese business characteristics is very complicated, since the majority of the companies have been cream of state companies with a hierarchical system very marked. At the end the companies have local personnel for the development of his activity and what touches is the know the mentality and forms to do. It treats more than adapting one to the terrain and know interpret the situations, being able to of this way find the good steering and not shooting in the dark. On the other hand I think that the most important is the recognition to the importance of the relations and to know cultivate them.
To the reverse, create this subject that remains them quite far.
They have observed if increasingly big tractor trucks Spaniards ‘drag' his subcontractors to follow them to China?.
are giving Cases in this regard and in reality is a very interesting model as somehow they facilitate any implantation of the subcontractor ensuring him activity, without forgetting that these to his time work his distribution to other companies. The only problem is that in the industrial field, are us so many the big companies with capacity of traccionar to all a community of lower companies. They are the companies of average size those that exert usually this paper, of way very loable, but with a lot of more limitations.
Explain us more on his work in learning of Chinese workers of Spanish companies…
With reference to the learning, say that this goes headed to companies and to students, are Chinese or Spaniards, that require it. The centre is essentially practical in the area of the CNC and the manufacture, by what treats fundamentally of continuous learning, customised in function of the formative request of the companies and of the students.
Regarding Spanish companies that already have some implantation, the works required have been, in the first place, of selection of personnel, and to continuation, a learning specifies, consensuada with the company to reach the aims expected. From here they develop productive own services, by the capacity of machinery of the centre, or of technical advice. As it has mentioned previously the centre serves of platform of other services to the companies.
The Basque adviser Bernabé Unda signalled that to compete internationally, “the size yes matters”. It believes necessary the cooperations between small companies to access to this market?
Totally of agreement. I have treated to transmit this idea previously. I think that it can intuir the importance of the size, that in our case probably has to come of the alliances or concentrations of companies in which share structure and resources. I think that here we have a big challenge by in front, as it is a way to do in which although we already have some route, have to follow developing until the last consequence.
In the Chinese market the big is important, therefore can intuir the importance that can us give if we tackle the same of an individual way. Neither it suits to forget the importance of the institutional support or asociativo, that can contribute to generate image of country. It is a question in which all have what contribute.
Changing of third, often the products arrived of China to Europe considered low quality and that competed with the autochthonous only for popping prices. It considers that this image is changing?
First clear that when we speak low quality, do not have to lose of sight the price that want to pay for that. China is very competitive and the ratio quality/price is low. The problem is that, in general and up to now, the markets are had to pay little by the Chinese products. However, in China exists also a segment of the perfectly instrumented industry and able to generate quality. We see it in infinity of electronic components of first level, in technological products like telephones or televisions, and extends to many other things.
In these moments only is necessary to see the change of model of growth that the Chinese Government and his new agents, through his new Plan Quinquenal, want to establish for the immediate development of the country. It speaks already of efficiency, of sustainable development and balanced and wants to bet by the creativity and the innovation. In fact, the transformation in the last years has been substantial regarding the quality of products and his competitiveness, but this also is deriving in a politics of different prices. The manufacturers of low cost confront to a reality that forces them to go up in the chain value, with a greater contribution, by what go to be followed giving adjust structural to be able to consolidate said situation.
