| |
 |
| |
Chairman Niels Huber accepts the Cathay Pacific China Trader Award on behalf of Boon Edam |
| |
 |
| |
One of the firm's energy-saving revolving doors at the entrance to the CITIC Bank Headquarters in Beijing |
A 136-year-old company that has built its name making innovative, high-quality entrance products and services is the recipient of this year's Cathay Pacific China Trader Award. The award recognises Dutch business success in Hong Kong and the Chinese mainland.
Royal Boon Edam is a leading Dutch designer and manufacturer of energy-saving revolving doors and security door systems. The company has been producing revolving doors for more than a century, expanding internationally with 15 subsidiary companies and 55 distributors worldwide, including a manufacturing plant in the mainland.
"We're honoured to receive this award, especially given the high-calibre of the other nominees," Boon Edam Group Chairman Niels Huber said. "The award recognises the hard work of our management and staff worldwide, and reflects the confidence shown by our customers around the world."
Focus redefined
The Edam-based company started out as a carpentry factory, which built the first wooden revolving door in 1903. Twenty years later, Boon Edam shifted its focus completely to designing and producing the energy-saving entrances.
The decision to open a production facility in the Chinese mainland in 2002 proved timely. "We found that importing products into China was getting expensive," explained Nick Kersey, Boon Edam Group Managing Director. "At the same time, the quality of China-made products was improving. In the long term, the only way for us to compete in the mainland was to manufacture there." Boon Edam set up a joint venture with its distributor to build a factory in Beijing, its first outside of Holland.
The plant undergoes strict quality control to ensure the same quality as those produced in the Netherlands.
Boon Edam now holds more than 60 per cent of the market share in the mainland, and with the current global economic climate, "we're happy to have a strong market presence in Asia," where he expects the impact of the global financial turmoil will be less severe.
High-profile projects
The company has been involved in several high-profile projects, including some of the venues for the Beijing Summer Olympics. It is supplying the doors for the Beijing CCTV Tower, designed by renowned architect Rem Koolhaas. Boon Edam was also awarded the contract for installing the world's two highest revolving doors in the China World Trade Tower in Beijing.
The company now hopes to expand market share there by promoting its security products. "Until three to four years ago, security in the mainland was mostly manned by people. But more foreign companies entering China are bringing with them their own type of security to their facilities, and it's catching on with Chinese companies." Mr Kersey foresees its security products, such as waist-high turnstiles and authorised-access revolving doors, to eventually outpace the sale of its conventional revolving doors.
The company opened a subsidiary sales and service office in Hong Kong last year to develop its mainland, Hong Kong and regional markets. "It was a natural extension to come to Hong Kong," Mr Kersey said. Hong Kong architects, he noted, are heavily involved in major construction projects in the region, especially in the mainland. "Being here allows us to work closely with them." Mr Kersey added that doing business with the rest of Asia is easier done in Hong Kong.
Market opportunity
But with the move towards more energy-efficient buildings in Hong Kong, Boon Edam also wants to make revolving doors in commercial buildings more ubiquitous in the city. "Revolving doors, traditionally, have been sold in cold climates, and it has always been a challenge selling them in warm climates. But it costs three times more to cool air than to warm it," he said.
Mr Kersey attributes Boon Edam's success to its philosophy of integrating the company with the local culture. "Unless the local nationals are running the business on the ground, you're always going to be struggling."
The 11-member jury of the Cathay Pacific China Trader Award, co-sponsored by the Hong Kong Trade Development Council, said it chose Boon Edam over two other nominees – Hyva and Spil Games – because of the company's ability to "fully integrate in the Chinese market by delivering a 100 per cent Dutch product."
Related links
Boon Edam
China Trader Award