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SPX-CQ Presentation April, 2006. About SPX-CQ About SPX-CQ Subontracting and Partnership Exchange of Chongqing(SPX-CQ) is a non-for-profit organization.

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Presentation on theme: "SPX-CQ Presentation April, 2006. About SPX-CQ About SPX-CQ Subontracting and Partnership Exchange of Chongqing(SPX-CQ) is a non-for-profit organization."— Presentation transcript:

1 SPX-CQ Presentation April, 2006

2 About SPX-CQ About SPX-CQ Subontracting and Partnership Exchange of Chongqing(SPX-CQ) is a non-for-profit organization founded by China Chongqing Government in cooperation with UNIDO (United Nations Industrial Development Organization) in western China in 2004. Subontracting and Partnership Exchange of Chongqing(SPX-CQ) is a non-for-profit organization founded by China Chongqing Government in cooperation with UNIDO (United Nations Industrial Development Organization) in western China in 2004.

3 United Nations Industrial Development Organization United Nations Industrial Development Organization UNIDO is the UN ’ s industrial specialist UNIDO is the UN ’ s industrial specialist Responsible for the sustainable economic development of developing countries and countries with economies in transition Responsible for the sustainable economic development of developing countries and countries with economies in transition

4 The Aim of the SPXs SPXs are technical information, and matchmaking centers for industrial subcontracting and partnerships between buyers and suppliers (often SMEs), aiming at optimizing the manufacturing capacities of the affiliated industries. SPXs are technical information, and matchmaking centers for industrial subcontracting and partnerships between buyers and suppliers (often SMEs), aiming at optimizing the manufacturing capacities of the affiliated industries.

5 Objectives of the SPX-CQ Objectives of the SPX-CQ Establishing and developing the long- term and stable business cooperation between European and American SMEs and Chinese SMEs from Western China. Establishing and developing the long- term and stable business cooperation between European and American SMEs and Chinese SMEs from Western China.

6 Activities of SPX-CQ SPX is an enabler of a better performance of the purchasers SPX is an enabler of a better performance of the purchasers and suppliers through his various activities. and suppliers through his various activities. Matchmaking: select, locate suppliers Training & Consultancy : i.e. Improve quality, technology & productivity Oraganisation of fairs : Raising images and brands of local enterprises

7 Target Groups of the SPX-CQ Target Groups of the SPX-CQ  European enterprises -- having strong desire of developing Chinese suppliers in metal and plastic Chinese suppliers in metal and plastic processing and be willing to provide processing and be willing to provide support for the suppliers support for the suppliers -- specializing in R & D, production and/or sales of automotive, motorcycle parts sales of automotive, motorcycle parts system or machinery equipment system or machinery equipment

8 Target Groups of the SPX-CQ Target Groups of the SPX-CQ  The SMEs in Western China -- strong desire of entering into international market and be willing to invest for improvement -- having strong metal and plastic processing capability, good plant, equipment and other infrastructures -- having idle production capacity or capability to enlarge production -- having ISO9000 certificate, adequate management level and skilled technicians management level and skilled technicians -- having annual production value within 1 million to 30 million EURO

9 Expected impact on target groups Expected impact on target groups Cost Control Cost Control Technological improvements Technological improvements Total quality (zero defects) management Total quality (zero defects) management Better organization of work within the enterprise Better organization of work within the enterprise Logistics (just-in-time practices) Logistics (just-in-time practices) Environment protection Environment protection

10 Benefits for Target Groups Benefits for Target Groups  For European enterprises : -- build up their own supply chain in China China -- reduce the purchase cost -- gain the new trading and investment opportunities and promote their opportunities and promote their competitiveness in the market. competitiveness in the market.

11 Benefits for Target Groups Benefits for Target Groups  For the SMEs in Western China: -- creating and sharing the new trading opportunities and expanding their opportunities and expanding their export export -- improving in cost control, technology upgrading, quality management, upgrading, quality management, internal organization, logistics and internal organization, logistics and environment environment

12 Collecting data about enterprises in the country Constantly updated local (SPX level) database Entering collected data into Database The SPX staff enters criteria's given by caller into the software SPX-CQ receives your enquiry Database finds the results of the search And the enterprise, after finding what it is looking for, is rerouted to the SPX-CQ, for more information. How does a SPX work?

13 Standardized Tools Standard Questionnaire Standard Questionnaire  General Information on the Enterprise Headquarters and plant address Headquarters and plant address Client references Client references Partnership informationPartnership information  Enterprise Activity Sectors and subgroups of activity Sectors and subgroups of activity Products (catalogued items) Products (catalogued items) Subcontracting demand (main contractor) Subcontracting demand (main contractor) Quality certificate, patents and licenses Quality certificate, patents and licenses  Production Related Data Subcontracted products Subcontracted products Raw materials and components Raw materials and components Specialized subcontracting supply (sub-contractor) Specialized subcontracting supply (sub-contractor) Machines and operations Machines and operations

14 Standardize Tools Database The database is established with UNIDO methodology, nomenclatures and “ Outsourcing ” software. At present 300 enterprises ’ data have been entered into the database after the assessment of SPX-CQ. Most of these enterprises specialize in manufacturing of the mechanical equipment and components of automobiles and motorcycles. It is planned that by the end of 2006 there will be 500 enterprises ’ data in the database, including the enterprises in the electronic, chemical, and house electric appliance industries. The database is established with UNIDO methodology, nomenclatures and “ Outsourcing ” software. At present 300 enterprises ’ data have been entered into the database after the assessment of SPX-CQ. Most of these enterprises specialize in manufacturing of the mechanical equipment and components of automobiles and motorcycles. It is planned that by the end of 2006 there will be 500 enterprises ’ data in the database, including the enterprises in the electronic, chemical, and house electric appliance industries.

15 Standardize Tools Database SPX Sector Distribution

16 Standardize Tools Database Output Value of SPX Members (EURO)

17 Achievements of SPX-CQ Achievements of SPX-CQ Matchmaking Activity 312 purchasing orders received from international buyers 312 purchasing orders received from international buyers 203 local enterprises selected from database received the 203 local enterprises selected from database received the purchasing order purchasing order 115 local enterprises put up their quotation for the 115 local enterprises put up their quotation for the purchasing products purchasing products 36 quotations have been accepted and in further 36 quotations have been accepted and in further negotiation. negotiation.

18 Achievements of SPX-CQ Achievements of SPX-CQ Organization of fairs Abroad:  Subcon in Birmingham in May 2005, Chongqing delegation:11 persons, exhibiting and visiting  MIDEST in Paris in December 2004, Chongqing delegation: 16 persons, exhibiting and visiting  MIDEST in Paris in November 2005, Chongqing delegation: 12 persons, exhibiting and visiting

19 Achievements of SPX-CQ Achievements of SPX-CQ Organization of fairs Home:  Auto Chongqing 2004: Exhibitors: 500, Visitors: 86,000; Business match-making meeting: 102 suppliers meeting with 22 purchasers Business match-making meeting: 102 suppliers meeting with 22 purchasers  Auto Chongqing 2005:Exhibitors: 500, Visitors: 119,000; Business match-making meeting: 111 suppliers meeting with 20 purchasers  Subcon China 2005: Exhibitors: 525, Visitors: 8,236; Business match-making meeting: 130 suppliers meeting with 30 purchasers Business match-making meeting: 130 suppliers meeting with 30 purchasers

20 Achievements of SPX-CQ Achievements of SPX-CQ Asia-Interprise Programme Successful preparation of Asia-Interprise program application as the main applicant in March 2006. Successful preparation of Asia-Interprise program application as the main applicant in March 2006. Project Title: Fostering the industrial subcontracting and partnership exchange between European and American SMEs and Western China SMEs Fostering the industrial subcontracting and partnership exchange between European and American SMEs and Western China SMEsLocation China , West part of China , Chongqing

21 Asia-Interprise Programme(Cont’d) The aim of the action: Establishing and developing the long-term and stable business cooperation between European SMEs and Chinese SMEs from West China, helping them develop subcontracting business; reducing European SMEs’ purchase cost; enhancing the management level and export capabilities of Chinese SMEs. Establishing and developing the long-term and stable business cooperation between European SMEs and Chinese SMEs from West China, helping them develop subcontracting business; reducing European SMEs’ purchase cost; enhancing the management level and export capabilities of Chinese SMEs. The main activities: Face-to-face matchmaking meeting between European SMEs and Chinese companies in Chongqing Face-to-face matchmaking meeting between European SMEs and Chinese companies in Chongqing The duration of the project: From 2006, 18 months From 2006, 18 months Achievements of SPX-CQ Achievements of SPX-CQ

22 Why Should You Come to China Why Should You Come to China Reasons for Companies Outsourcing Reasons for Companies Outsourcing

23 Why Should You Come to China Why Should You Come to China Annual Cost of Labour (USD) Annual Cost of Labour (USD)

24 ABOUT CHONGQING ABOUT CHONGQING Chengdu

25 Upgrade is a key word for Chongqing. While still lagging behind its coastal counterparts, the city, inaugurated into a municipality directly under the central government eight years ago, is striving hard to upgrade its infrastructure facilities, shore up its core competitiveness in pillar industries and transform into a real economic hub in Southwest China. “Chongqing City Upgrade”, China International Business, May 2005 About Chongqing About Chongqing Set in the middle reaches of the Yangtze, this former trading centre and treaty port has long been the economic hub of western China. But after its government was given municipal control of surrounding territory the size of many countries, it has grown and grown, becoming what is now the world's biggest municipality with 31 million residents (more people than Iraq, Peru or Malaysia). The population in its metropolitan areas will double from 10 million to 20 million in the next 13 years. “Invisible City”, Guardian Unlimited © Guardian Newspapers Limited 2006

26 Chongqing’s Industry Chongqing’s Industry Chongqing is one of the most important Manufacturing bases in China. It is very strong in automobile and motorcycle, machinery, mechanical/ electronics and Chemical industries.

27 Automobile Industry Share of the automotive sector of the whole industry in Chongqing and of the whole automotive industry in China (2003) Source: Market Study Automobile Manufacturers and Suppliers in Chongqing by DIHK Branch in Chongqing ( % ) in China ( %) Automobile16.84.7 Motorcycle7.525.5 Automobile Part & Component 4.93.0 Motorcycle Part & Component 11.835.8 Total Automotive 39.56.8

28 Welcome to contact us to do business in Middle and Western China. Welcome to contact us to do business in Middle and Western China. http://www.spx-chongqing.org http://www.spx-chongqing.org http://www.spx-chongqing.org

29 Thank you Thank you Muchas Gracias Muchas Gracias Muito Obrigado Muito Obrigado Merci Beaucoup Merci Beaucoup Danke Danke


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