AUG 2016
Scandinavian
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DCCC: Welcome Back Party
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Coming Events
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Where: The Royal Danish Embassy in Beijing When: 2 Sep 2:00 - 01:00 Danish Chamber of Commerce in China Beijing, DCCC, will once again be hosting a Welcome Back Party. It will be the biggest Danish BBQ party in Beijing, and it will be at The Royal Danish Embassy. SAVE THE DATE so that You and your friends do not miss out on this cozy party with fantastic prizes and music!
Annual Crayfish Party Where: By the pool at Royal Hong Kong Yacht Club, Causeway Bay, Hong Kong When: 9 September 2016, 7.30 PM - 12.30 AM Swedish Chamber of Commerce, Hong Kong
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Your FREE ScandAsia Magazine in China ScandAsia is the only magazine that covers all the Danish, Finnish, Norwegian, and Swedish residents in China. We also publish a ScandAsia magazine in Thailand, Singapore and the rest of South East Asia.
DCCSC: Business event - Factory visit at ECCO Where: Ecco factory When: 9 sep, 10:30 - 17:00 Venue: ECCO Registration: Please send an email to dccsc@dccsc. net with name(s) and company. Price: Price: Members: RMB 250 | Non-members: RMB 400 Language: English
Please sign up for your own FREE copy: www. scandasia.com Publisher : 211 Soi Prasert Manukitch 29 Prasert Manukitch Road Chorakae Bua, Lad Prao Bangkok 10230, Thailand Tel. +66 2 943 7166-8, Fax: +66 2 943 7169 E-mail: news@scandasia.com Editor-in-Chief : Gregers A.W. Møller gregers@scandmedia.com Managing Editor: Joakim Persson Joakim@scandmedia.com Advertising : Finn Balslev finn@scandmedia.com
Nordic Business Forum Shanghai in September On 23-24 September 2016 the primary Nordic Business Event - the Nordic Business Forum Shanghai takes place, arranged jointly by several Nordic chambers of commerce in China. This forum brings attendants two full days of business talks, relevant and enlightening panel discussions and inspiring workshops. A large number of Nordic companies from a variety of industries venture to China to seek inspiration for innovation, opportunities in new markets and proximity to the world’s most exciting inventions. The Nordic Business Forum Shanghai aims to
Graphic Designer : Peerapol Meesuwan Peerapol@scandmedia.com Distribution : Wanvisa Rattanaburi wanvisa@scandmedia.com Printing : Siamprint Co., Ltd.
tell the story of their journey, share experiences and discuss common challenges. Registration opens in September.
Daily news and features here: www.scandasia.com
Source: Swedish Chamber of Commerce in China, Finncham Shanghai August 2016 • ScandAsia.China 3
News Brief
Swedcham HK Young Professionals celebrates Midsummer!
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0 members from Young Professionals gathered on Saturday the 25th of June to celebrate midsummer Swedish style. This is an annual tradition and that’s been one of the main events for Young Professionals in Hong Kong. This year, the YP Midsummer Junk headed to Clearwater Bay, Sai Kung. The boat was loaded with herrings, meatballs, pies, crisp bread, potato salad, snaps and a delicious blueberry pie with vanilla sauce. Hong Kong Beer Pong Association sponsored this junk with a floatable beer pong table so the traditional pentathlon took place in the water this year! For more information about YP and if you want to become a member, contact SweCham Hong Kong. Text and photos: Jesper Karlsson, SwedCham Hong Kong 4 ScandAsia.China • August 2016
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News Brief
Chinese delegation visits Swedish municipalities
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n 27 June 2016 representatives from Lanzhou Munici pality in China visited the Swedish city of Karlshamn. The purpose of the visit was to get inspiration from Karlshamn municipality’s civil affairs effor ts in general and urban planning in particular. Representatives from Lanzhou Municipality in
China contacted Karlshamn in the spring before a visit to Europe. During their stay, the Chinese delegation to visit three Swedish municipalities and then three organizations in England. “It’s exciting that they chose Karlshamn as one of three Swedish municipalities to be inspired by during their European tour. I saw it as very positive to be able to highlight and discuss how we in Sweden are working with the planning process, civil dialogue and cultural environment,” said Emina Kovacic, city architect in Karlshamn. “We appreciate these kind of exchanges to get the opportunity to learn more about how other countries work with similar issues while giving us the opportunity to reflect and question our own practices because of experiences-sharing,” said Per-Ola Mattsson, Mayor of Karlshamn. In addition to city architect Emina Kovacic and Mayor Per-Ola Mattsson, Daniel Wäppling, head of the Civil Administration; Jan Bremberg, Chairman of the Building Committee; street engineer, Jonas Johansson and Yi Chai from NetPort also attended.
Ural Airlines brings more Chinese visitors to Finland
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he Russian airline Ural Airlines on 1 June began operating new scheduled flights from Yekaterinburg to Helsinki Airport. Ural Airlines closely collaborates with the travel agents UTour, which brings passengers from China to Finland via Yekaterinburg.The route operates twice weekly to Helsinki Airport from June to October, using Airbus A320 aircraft. “On behalf of Finavia, I would like to bid Ural Airlines and UTour’s passengers warmly welcome to our airport and Finland. The number of Chinese passengers at Helsinki Airport has increased considerably recently, and this trend is continuing. This year, we are investing strongly in services and shopping opportunities for Chinese tourists”, says Joni Sundelin, Senior Vice President at Finavia. Shopping guides who can tell passengers especially about shopping opportunities at the airpor t in Chinese will star t working in the summer. Employees with Chinese language skills have been hired by Finavia’s customer service 6 ScandAsia.China • August 2016
in the past as well to make travelling easier for Chinese passengers. “There are now excellent connections from Helsinki Airport to Asia. In addition to the new Ural Airlines connection, there are 17 direct connections from various destinations in China to Helsinki Airport. The latest destination in China is Guangzhou, and the opening of that connection was celebrated at the airport in early May”, says Sundelin. On 1 June new waiting facilities were also inaugurated at Helsinki Airport. Finavia provides and develops airport and air navigation ser vices with focus on safety, customer-orientation and cost efficiency. Finavia’s comprehensive network of 22 airports enables international connections from Finland - and to different par ts of Finland. Helsinki Airpor t is the leading Nor thern European transit airport for long-haul traffic. Revenues in 2015 were EUR 353 million, and the number of employees 2300.
Norway China Investment Conference 2016
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8 - 24 September Beijing and Shenzhen will be host cities for the Norway China Investment Conference 2016. Innovation Norway, Royal Norwegian Embassy in Beijing and Royal Norwegian Consulate General in Guangzhou will host the 3rd Norway China Investment Conference, in Beijing on 20 September and in Shenzhen on 22 September. Over the past decade, China’s outward foreign direct investment (FDI) has increased substantially and exceeds USD 100 billion, which makes China the world’s third largest overseas investor. China is now a major player in the global investment market. A growing number of sophisticated and confident Chinese investment companies have entered the global market including Norway. In 2015, Chinese investors invested in hotels, beverages, ICT and renewable energy businesses in Norway. The focus of China’s outward FDI is also shifting from natural resources such as energy and mining to high technology- and consumption-oriented sectors. Chinese privately owned enterprises (POEs) is also growing and investment from these POEs currently accounts for half of China’s outbound FDI. The organisers invite companies who are looking for Chinese capital and cooperation with Chinese partners to join this conference. The conferences in Beijing and Shenzhen will focus on bio economy and ocean economy. The modern metropolis of Shenzhen is located right next to Hong Kong on the South China Sea coast. With a rapidly growing focus on the opportunities in the ocean, Shenzhen is the business, finance, hi tech centre of Southern China and has repeatedly been awarded “the best place to do business in China”. Anyone interested in joining this business delegation and conferences should contact Innovation Norway China Office , Royal Norwegian Consulate General in Guangzhou and Invest in Norway. Companies from sectors related to finance, bio and ocean economy are welcome to join the sessions of conferences in Beijing and Shenzhen. The sectors include but are not limited to: Financial sector, Business service, Marine bioprospecting (Marine biotech),Marine (aquaculture, subsea, advancing manufacturing etc.) technology companies/Clusters, Renewable marine energy, Marine clean tech, ICT/Data Service related to ocean, Marine and coastal tourism, and Oil & Gas
News Brief
Aritco’s home lifts enters China
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ritco (Swe) launches Aritco HomeLift at the fair Shanghai Villa and Facility Exhibition on 5-7 July 2016. The new lift is the world’s first residential lift uniquely designed to fit in a home environment and is designed by the Swedish designer Alexander Lervik. Aritco HomeLift was launched in Europe in February 2016. The pre-production series will be distributed globally in early July 2016. The official star t of production takes place in the fourth quarter of 2016. Shanghai Villa and Facility
Exhibition is the largest and most prestigious B2B exhibition in China with great influence in the building industry. “Since Shanghai Villa and Facility Exhibition’s audience consists in designers and architects in the residential segment fits perfect for us to locate the launch of Aritco Home Platforms there,” says Sharon Qu, head of Aritco office in China. We have 12 distributors in China and have seen a great interest in the product before the launch, “she continues.
“China is an emerging market with enormous potential. Aritco growing in China each year, and the launch of Aritco Home Lift in Shanghai is an important milestone for us. On a global level, we have seen a great interest in our new villa elevator and we are excited to launch in additional markets, “said David Schilling, Marketing Aritco. Aritco Home Platform is the world’s first elevator uniquely designed for private homes.
Bluair shares air pollution insights with Chinese media
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delegation of 18 Chinese journalists visited the Stockholm head office of indoor air purification leader Blueair in early May as part of a visit to Sweden arranged by prestige auto maker Volvo Cars. The journalists came from mainstream media in China such as China National Geographic, Auto Magazine and Men’s Health. Sweden’s Blueair is the world’s leading provider of innovative indoor air cleaning technologies with sales in over 62 countries and China is the company’s largest single market. “We were honoured to be given the opportunity to explain the problems polluted outdoor and indoor air pose to people at home or work and how our 20-year long expertise
in making the world’s best air purifiers benefits people’s health and wellbeing,” said Blueair’s Bengt Rittri, CEO of the company he founded 20 years ago in Stockholm. At Blueair’s Stockholm head office, journalists were briefed by company staff on Blueair latest indoor air cleaning technologies and products for use in homes, work spaces and elsewhere. Mr.Rittri noted how both Volvo Cars and Blueair are Swedish companies that have grown strong internationally due to their shared commitment to such values as protecting the environment and people with high quality, well designed products. Blueair air purifiers are designed to remove harmful par ticles such as PM2.5 fine dust as well as pollens and viruses from indoor air that
medical research has suggested play a role in many of the major health challenges of our day. A landmark study published earlier this year by two prestigious UK medical institutions, the Royal College of Physicians and the Royal College of Paediatrics and Child Health, said air pollution is is linked to cancer, asthma, stroke and heart disease, diabetes, obesity, and dementia. “Chinese cities like Shanghai and Beijing frequently make headline news because of the polluted air they suffer, but the reality is that air pollution strikes every city on our planet, even Stockholm, posing a cradle-to-grave threat to human health over our lifetime,” Mr. Rittri.
August 2016 • ScandAsia.China 7
News Brief
China lifts Danish beef, poultry import ban
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hina has on 3 June confirmed that it is lifting its impor t ban introduced four years ago on bovine and ovine genetic material from Denmark, France, Germany and the United Kingdom due to Schmallenberg virus. The decision – preceded by joint effor ts of various Commission services and EU Member States – was announced by the Chinese Minister of Agriculture Minister HAN Changfu during the visit of EU Commissioner for Agriculture and Rural Development Phil Hogan to China this week. The Commission welcomes the lifting of this ban that should now quickly allow for real trade to star t taking place and looks forward to seeing China open its market for
these safe products from the rest of the EU in the near future. In May 2012, China introduced a ban on impor ts from several EU countries of bovine semen, bovine embryo, ovine semen and ovine embryo produced after 1 June 2011, referring to an alleged risk of Schmallenberg virus (SBV) which can cause bir th defects and stillbir ths in cattle, sheep, and goats. This measure went beyond the international standards set by the World Organisation for Animal Health (OIE), which considers that the virus does not meet OIE requirements for setting an international standard and that trade measures for this disease are, therefore, not required.
Nevs new trademark as Saab brand is denied business model for mobility, said Jonas Hernqvist, VP Sales & Marketing NEVS. “A transparent approach – with traits such as being inclusive, honest and genuine – is essential for the company, both in terms of behaviour and visualization. From colours to imagery, our new brand design should always reflect our aim of shaping mobility for a more sustainable future,” stated Nevs. Head office and main research and development facilities are located in Trollhättan, Sweden. The car production plant is located in Trollhättan, with a second production plant and a R&D Centre under construction in Tianjin, China, as well as a production plant in Fujian, China.
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n 21 June media repor ted that the Swedish Saab car brand had been dumped on the scrapyard of automobile history as National Electric Vehicle Sweden, NEVS, launched its new trademark, having been denied to continue using the venerable name. Nevs was created to take over the assets of Saab Automobiles in 2012 following the automaker’s bankruptcy, Saab cars were then built for a short while, until running into renewed financial trouble in May 2014. Since then Nevs has failed to persuade trademark owners the Saab aero and defence group to let it continue to use the Saab name for its own future generation of electric cars. The vision is to shape mobility for a more sustainable future by focusing solely on electric vehicles with mobility solutions built around them. To support this vision a new brand identity has been developed. Nevs will be the trademark of the company’s products including the first electric vehicle based on the 9-3 platform with start in 2017.That means that Nevs will no longer use the Saab trademark. The automotive industry is changing rapidly to better fit societies struggling with pollution and congestion problems. Nevs intends to be in the forefront of this change, said a press release. “With sincere respect to our history and heritage, we want to be recognized as ourselves – 8 ScandAsia.China • August 2016
A sustainable mobility solutions provider who are committed to the environment with a focused growth plan with its own brand as a corner stone, said Mattias Bergman, President Nevs. The car maker’s long-term business goal is set globally, with China as its first priority and most demanding market for the coming years. Nevs intends to build a strong footprint in China as a base for a global expansion, and continue to establish partnerships with forefront runners to shape the future of mobility solutions. A number of framewor k agreements have already been signed, including a strategic partnership agreement with Panda New Energy to deliver 150,000 electric cars and another 100,000 electric commercial vehicles, as well as the collaboration with Chinese State Grid, the world’s largest electric utility company. Nevs has a unique position by combining proven ability to develop and build high quality premium car s and at the same time the opportunity to build an automotive company for the future with new owners and partners specialized in for instance car sharing solutions and charging infrastructure. “I believe the tipping point for electric vehicles is very near in many key markets. We aim to contribute to a more sustainable city planning, and together with our partners such as State Grid and Panda New Energy jointly introduce a new
Mattias Bergman, President Nevs
Jonas Hernqvist, VP Sales & Marketing NEVS
News Brief
Finnish district heating analysis for China
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TT Technical Research Centre of Finland Ltd (a leading research and technology company in the Nordic countries) and Nuorkivi Consulting announced on 25 May that they have analysed the suitability of Finnish heat distribution centres for Chinese conditions. China, which is already the world’s biggest user of district heating, currently uses traditional joint district heating centres. China could benefit from energy-efficient and better functioning district heating. Introduction of building-specific heat distribution centres would result in 1020% savings in energy costs and reduction in CO2 emission Building-specific heat distribution centres are not very well known in China. The World Bank implemented a pilot project on district heating in the Liaoning Province in China, where almost a hundred building-specific district heating centres were installed in ten sites. The Chinese Ministr y of Housing, Urban and Rural Development (MoHURD) requested Finland to analyse the results and draw up a handbook on building-specific distr ict heating centres to suppor t the heating reform currently being promoted by MoHURD. VTT and Nuorkivi Consulting took advantage of the results from the EUR 360-million project that the World Bank funded in 2014-2016. The use of building-specific heat distribution centres allows direct distribution of heat to buildings and building-specific adjustment of heating. The benefit is that the long delay between the joint distribution centre and separate houses is eliminated. Water flow is also reduced by 60-80%, which significantly reduces pumping expenses. In addition, the traditional method is prone to corrosion, because water rich in oxygen can enter the secondar y pipeline after the joint distribution centre. These problems are
eliminated and the service life of the system can be extended, because a primary network ending at a building-specific heat distribution centre is a closed system. The buildings must be equipped with radiator-specific thermostatic valves in order to enable functioning of building-specific heat distribution and adjustable flow rate pumps in old buildings. The radiator can thus be adjusted according to heating requirements and the pump according to the need for water circulation. In the pilot projects, it was observed that building-specific heat distribution centres produced major savings in energy consumption compared to the traditional Chinese district heating system based on joint distribution centres with 2 to 6 pipes and 30 to 40 houses connected to the network. The use of building-specific heat distribution centres saves investment costs on district heating networks, because only two pipes are needed instead of several. “We estimated that, depending on the method of implementation, 10-20% of energy can be saved,” says Kari Sipilä, Principal Scientist at VTT. The change would also save coal and electricity, and reduce CO2 emissions. When the heat distribution system is changed to a building-specific one, the investment costs increase 2.5-fold compared to those of joint distribution centres. Savings can however be achieved by optimising the network in such a way that the overall costs of the building-specific system can be even lower than when using a traditional construction model. As the operating costs of a building-specific system can be lower or at most the same as those of a traditional joint distribution centre, the life cycle costs of a building-specific system can be significantly lower.
The investments made divided by the savings achieved annually, when calculated without interest, place the payback period at approx. 6.5 years, which may well vary from case to case. On the basis of the results obtained, the World Bank is in the process of launching a continuation project in Hebei Province. “Our goal is that Finnish companies would be involved in the implementation of these projects. This is a great oppor tunity. We must have good technical competence and a competitive price level,” Kari Sipilä emphasizes. The project was funded by Finnish Energy, Finpro – Beautiful Beijing, the City of Turku, Alfa Laval Nordic Oy, Högfors Valves Oy, Kolmeks Ltd, Enoro Oy, Oilon Oy, Vexve Oy, VTT, and Nuorkivi Consulting. The results have been compiled into a publication that has also been published in Chinese. Minister Kimmo Tiilikainen handed over the repor t in China in March 2016.The Chinese ministry MoHURD distributes information on the project to such organisations as engineering offices and district heating companies in the area of Nor thern China.
Finnish Company receives social responsibility recognition in China
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innish company UPM Raflatac – one of the world’s leading suppliers of self-adhesive label materials – has received the prestigious 2015 GoldenBee CSR China Honor Roll Award – as the only company in the label industry – in recognition of its commitment to sustainability, and particularly its Label Life concept. Covering nine different award categories, the GoldenBee awards are given to companies
who are at the forefront of sustainable business development in China. UPM Raflatac has been awarded with “The GoldenBee Customer Focus Award” due to its alignment with the concept of responsible competitiveness promoted by GoldenBee CSR Consulting. Based on the most comprehensive life cycle assessment (LCA) in the industry, UPM Raflatac’s Label Life tool delivers reliable and easy to understand information to help label printers and end-users make sustainable choices.The Label Life concept was first launched in Europe in 2013 and has since expanded to other markets. In 2015, it was introduced to Chinese customers and brand owners. “Our holistic approach to sustainability is at the heart of our global Label Life concept,” says Kaisa Vainikka, Global Sustainability Manager for UPM Raflatac. “The Label Life tool helps our customers
understand the environmental performance of our label products during their entire life cycle in terms of carbon, water and energy, and the endof-life impacts of liner recycling.” “Over the past decade, we have seen the vibrant development of CSR in China,” comments Sharon Xiao, Sustainability Manager, UPM Raflatac Greater China. “We are delighted that our efforts are recognized by the GoldenBee CSR China Honor Roll in this important area. We will continue to work with customers and end-users to help them make sustainable choices.” Hosted by the Chinese financial journal China WTO Tribune, the GoldenBee CSR China Honor Roll has been published since 2008 and supported by more than 2500 companies since its launch.The 2015 awards were presented at the 11th International CSR Forum in Beijing, China on June 7th, 2016. August 2016 • ScandAsia.China 9
Scandinavian design on the H Views and case stories By Frederik Guy Hoff Sonne
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ong Kong is the sparkling design hub of the Asia. It’s hip, wealthy and car r ies a deep-rooted genuine interest for design. This combined with a rooted tradition for consumerism and a location at the footstep to the industrial powerhouse of China makes Hong Kong a mecca for designers and design companies all over the globe. ScandAsia has been in Hong Kong to find out how the Scandinavians could tap into this blooming design scene and conversely whether Hong Kong is excited about Scandinavian design. Let’s begin with a story of success - the tale of Roger Johansson. In the autumn of 2014 Roger Johansson, Swedish entrepreneur, was invited to open a pop-up shop selling Scandinavian design in Hong Kong’s design studio and shop site - PMQ. At first he was far from confident. And with good reason. He did some research and interrogated with the retailers in PMQ.They were not exactly encouraging. The management at PMQ was working slow and expenses were high. “Maybe you should sell smaller stuff - like pens,” he was told. Johansson himself was mainly an exper t in selling alcohol in Hong Kong and mainland China, but had some years of experiences in distributing Scandinavian design and goods in the region as well. “In the end we were really skeptical that this 10 ScandAsia.China • August 2016
was a good idea,” Johansson says. But he ended up jumping into it anyway. “Then I thought, it’s only for a month and we will get subsidies from the Hong Kong government. So let’s see what happens”. There was not too much at stake. A day in November 2014 he sat up the Stockholm shop with three employees. It was raining. Johansson was wearing his Stutterheim raincoat, a brand they also displayed on rails outside of the shop. Johansson offered to get coffee for the others, so he left his raincoat on a cardboard box in the opening chaos and did a coffee-run. When he came back 20 minutes later his coat was gone - and so were the three coats hanging on the rail. “Someone stole my coat,” he yelled. The others were confused. “No we just sold four Stutterheim raincoats to an elderly Hong Kong woman,” they answered. “Including the grey one on the box?” he asked. “So we sold four raincoats, including mine, when we haven’t even opened yet. The woman didn’t care that we didn’t have a cashier or bags and so on. Since then it has escalated, snowballed really.” Johansson says. The numbers speak for themselves. Opening in November they made 450.000 HKD. In December it was 630.000. The average shops in PMQ sells for 80.000 in December, and that’s the busiest month. Since then Johansson
has opened 3 Stockholm shops in Hong Kong, selling nothing but Scandinavian design. Even though sales are not as sky-high as in the honeymoon period, Stockholm is still having a turnover that is triple as high as their competitors, Johansson tells. “When you run a retail, you’re happy if you can earn the rent in a week and rent plus salaries in approximately 10 days.That’s a healthy business. We usually earn that in 3 to 4 days”, he says. The story of Johansson and Stockholm is undoubtedly one of the most positive tales one can find on Scandinavian design in Hong Kong. Thus it might not be solely representative. So let’s see how other Scandinavian spectators views the Hong Kong market for Scandinavian design. Swedish heavyweight “foray is still to come” First and most obvious man to hear out is Lars Nittve. He’s a Swedish and international heavyweight in the ar t and design world and a Hong Kong-exper t. Most recently he was executive director for the ambitious M+ museum for visual culture in Hong Kong from 2010 until January 2016. Nittve is a man that offers a perspective on the broader tendencies in the regions design hub. He sees that the Hong Kong market contains a great potential for Scandinavian design. “Hong Kong has an extreme consumer culture, which results in a very wasteful culture.
Hong Kong market For me this represents a market for Scandinavian design to tap into. Scandinavia is associated with functional and green design, moreover its very core presents a value, a good morale. These are strong selling points. Environmental design could be a profitable approach for Scandinavia in Hong Kong.” Moreover Hong Kong prevails a natural interest in design and especially Japanese design, which Nittve says might work as an advantage for Scandinavian brands: “In some ways there are many similarities between Japanese design and Scandinavian design. There is a similar attitude to design in Japan and Scandinavia, where respect for material, the craftsmanship and quality is important. So there’s already a demand for this,” Nittve explains. Though this sounds very positive, Nittve is still not convinced about that Scandinavian design is a success in Hong Kong yet.The great foray into Hong Kong is still to come, he ends. Before entering Hong Kong Nittve was the founding director for Tate Modern in London and Center of Contemporar y ar t in Malmö, former director at Moderna Museet in Stockholm and Louisiana Museum of Modern Art outside of Copenhagen. He still works with M+ as a consultant. Scandinavian thoughts and ideas in demand Back at PMQ, where Stockholm’s success
took off, and from Nittve’s helicopter perspective, we want to get on ground and meet with some foot soldiers at the Hong Kong design scene some with hands-on experience as designers in Hong Kong, that can tell what Scandinavian design offers to Hong Kong. ScandAsia meets Swedish Hong Kong-based designers Johan Persson, industrial designer and founder of C’Monde Studios, and Anders Hellberg, co-founder of Boris Design Studio, in Persson’s studio at PMQ. Persson and Hellberg have been working with design in Hong Kong for 10 and 7 years respectively. When asked if they experience a Hong Kongcrave for Scandinavian design, they give conflicting answers. Hellberg says that he’s been called up and asked if Boris Design could do “some Scandinavian design” several times. “If the demand comes out of a deeper interest or just a trend, I don’t know,” he says. But he surely sense that the connotations following Scandinavian design works as an advantage. “I find that people are asking for Swedish products because they are Swedish,” he explains and uses the Stockholm shop as an example. “When they opened they had a line for days”. Per sson disagrees. “The guys behind the Stockholm shops were plainly just good at business,” he assess, declining to discuss Scandinavian design in such specifics. “I’m not
really sure what Scandinavian design is. It’s very vague and It might have a different meaning to different people.” When asked about a tangible demand for products, he says that Hong Kong has a demand for smart design and functionalism connected to Northern Europe. “I recently read a Form Magazine (Scandinavian architecture and design magazine ed.) from 1956. On the front cover there was a feature about functionalism and universal design. Functionality for everyone and design where the user is at the center of the design, is a new trend in global terms, but it’s a natural par t of Scandinavian design and has been for many years. So in this aspect we’re far ahead.” Persson explains. For Per sson it’s not the products of Scandinavian design, but foremost the Scandinavian thoughts, ideas and work processes - in other words the designers themselves - that are in demand. “There’s a tradition in working with design here and in China, that you tend not to ask too many questions. In my opinion asking questions is the core of a designers work. In Scandinavia we are good at asking why. That’s why they’re paying us 3 or 4 times more.” he says. Scandinavia has a long history in developing processes and that is where the Nordic advantages for designers are. It’s in consulting Scandinavia has something to offer.
Telling the story of Scandinavia Last stop is at the Luxe Manor restaurant in Hong Kong’s Tsim Tsa Tsui area to get some advices on the business and marketing perspectives of Scandinavian design. “4 years ago McKinsey made a report on whether it would be profitable or not to actively present your brand as Danish. Back then the conclusion was that it wouldn’t add any value to your product”, says Anita Vogel, senior director at Skagen and vice chairman at the Danish Chamber of Commerce in Hong Kong. Today it’s another stor y. “Now I’m ver y positive that it would.The interest has flipped and using the DK label grants value”, she says. For her selling Scandinavian design is all about storytelling. And the stories told about Scandinavia in recent years are a good ones. “The knowledge on Scandinavia has grown the last 3 to 4 years. For instance if I ask people about Denmark, they know that we have been ranked as the happiest people in the world. Here Denmark equals happiness,” Anita Vogel explains. Sweden, Norway, Finland August 2016 • ScandAsia.China 11
and Denmark are all in the top 10 ranking of UN’s famous World Happiness Report. Denmark tops the list. So Scandinavia might have strong connotations to something as abstract as happiness. But what sells and represents Scandinavian design more specifically? Vogel has an answer to that as well: “Scandinavian design represents sustainability. It’s high quality but yet affordable,” she says before working her way up on the ladder of abstraction again. “But it also represents values and ethics. Everything is combined. If you look at the conditions of a Scandinavian workplace, it represents value sets with a high degree of freedom, equality, room, space and comfor t. People are interested in that. In some way that is also the idea they buy when they buy Scandinavian products.” A Scandinavian brand that has benefited from this in Hong Kong is the Danish shoes brand Ecco. They have marked themselves successfully on the Hong Kong map by opening unique Ecco store concepts. They now have three retail stores there made with imported interiors from Denmark and other places from Europe. Everything down to the light bulb is carefully thought out that gives these experiences that connect people to the Scandinavian value sets says Joanna Ho, deputy general manager at Ecco in Hong Kong. It’s not profit-making in the short run Ho says, but it is a very successful way to build your brand and sell the Scandinavian idea which will 12 ScandAsia.China • August 2016
make your brand a success in Hong Kong. This matters, Vogel adds. Skagen has now been in Hong Kong for 9 years, and she experiences that consistency has been key. This makes your brand special, makes it stand out and gives it quality. “The main thing here in Hong Kong is that people want something special, something with a history,” Vogel says. Skagen were purchased by the Fossil Group in 2012 for stock and cash in transaction totaling approximately US $237M. Ecco was recently ranked 10th as Danish companies with the best images on a list made by 4081 Danish business executives.
The success behind Stockholm To complete the circle let’s end where we began - with Roger Johansson. He never expected Stockholm to turn into such a great success, he says. Now looking at it in retrospect he gives his analysis. Like Ho and Vogel, Johansson recognizes the urge to do something extra as beneficial. When Stockholm opened in Hong Kong they had whiskey-tasting, invited speakers and did a lot of Scandinavian concept events that are not usually expected for a normal store. In his view standing out from the others has been essential. He’s positive that Scandinavian design is looking towards a bright future in Hong Kong. “I think Asia is starting to understand the simplicity of Scandinavian design, the beauty of
the minor.” ”We should thank Ikea for that. They are the main source for what Asians know about Scandinavian design. Ikea in one way represents the lowest quality of Scandinavian design and that is a very, very high quality in Asia for a reasonable price,” he says. Ending with the key to Stockholm’s success Johansson says: “We have followed our guts. We have chosen to trade the products that we felt a personal connection to, something we grew up with. If that personal feel is there, it’s easier to tell the story about why one should by this and that generated sales in the end.” After a decade of an extremely overheated market in Hong Kong, it’s beginning to reach natural levels. One reason is that the products that Mainland Chinese came to shop are now also available in Mainland China. Many bigger brands can feel that, but Stockholm is still growing with on average 3 to 5 percent per month, which isn’t huge for a small company but still it’s growth, Johansson tells. Hopes are to open the 4th shop in Hong Kong by the end of 2016. Next year he will hopefully open one in Singapore as well, China is the next logical step to expand into, while he also wants to open in Bangkok and is looking into Jakarta and Seoul and possibly also Tokyo in the future. But it all began in Hong Kong.
Scania, other European businesses treated unfairly in China
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n 7 June the European Union Chamber of Commerce in China (European Chamber) released, in collaboration with Roland Berger Strategy Consultants, their annual Business Confidence Survey with a focus on that Beijing’s failure so far to deliver on promises that foreign-invested enterprises would enjoy a more open, competitive market has fostered mounting pessimism. Its members Companies, which includes Swedish bus and trucks maker Scania, increasingly perceive that China’s reform progress to have stalled. According to the survey a significant 41% of European companies are now re-evaluating their China operations and planning to cut costs, including through headcount reduction. Although 47% also repor t that they plan to expand their operations in China, this represents a thirty-nine-point decrease from 2013, when an overwhelming 86% of European companies were intending to do so. However, a clear majority of European business would likely increase their investment in China in the event of market access barriers being removed. China’s economic slowdown continues to pose a significant challenge to both Chinese and European companies. However, European business is suffering more acutely from its effects due to an increasingly challenging business environment, coupled with a playing field that is perpetually tilted in favour of domestic enterprises. More than two years after promises of
market reforms and equal treatment were made at the Third Plenum, which European business had welcomed as a potential breakthrough, European companies still perceive that they are treated unfairly. When compared to domestic Chinese companies, 57% of respondents report that FIEs tend to be subjected to unfair treatment. As the Decision was a reform package that the Chinese authorities chose to publicly announce of their own free will, the lack of follow through has been particularly disappointing. Although pronouncements made in the Decision committing to a market economy, and gradualist reform efforts such as the once-hailed pilot free trade zones initially piqued great interest among European companies, the absence of concrete developments has deepened their disillusionment in China’s reform agenda.
Some of the survey’s other key findings: • 56% of respondents report that doing business in China has become more difficult, a five-point increase from 2015. • 58% of respondents state that the recent tightening of Internet controls and access restrictions has a negative impact on their business, a 17-point jump from 2015. • 55% would likely increase their investment China if afforded greater access. • 57% of respondents believe that environmental regulations are strongly enforced against foreign companies, while only 14% think that they are strongly enforced against Chinese
state-owned enterprises and only 12% think that this is the case with privately-owned Chinese companies. • 40% of respondents feel that foreign companies are being discriminated against through recently promulgated national-security-related legislation. • 70% of respondents feel less welcome in China than they did 10 years ago. Commenting on the report to Wall Street Journal Mats Harborn, Executive Director of Scania Sales China Co., among the companies surveyed, said weak enforcement of vehicle-safety standards in China often favour local players in a position to bend the rules. “Transportation is a good indicator of how China’s doing as a whole. They’ve made some progress but it’s far from enough,” Mr. Harborn said. “There’s massive overcapacity when it comes to transportation. It’s quite messy. We’d like to see proper enforcement so everyone follows the same rules and competes on service.” Furthermore, European companies’ willingness to invest in R&D in China has dropped from 85% in 2015, to 72% in 2016, indicating that the Chinese Government’s on-going efforts to attract innovation are not having the desired effect. A major area of concern for China that only 28% of respondents have a R&D centre in Mainland China, which is indicative of European distrust of China’s vague and arbitrar y legal system – effective enforcement of intellectual property rights throughout China’s provinces is highly inconsistent. Nearly half of respondents repor t that China’s R&D environment is less favourable than the worldwide average. The successful completion of the EU-China Comprehensive Agreement on Investment is seen to be integral to improving the business environment and reducing market access barriers. European Chamber President J?rg Wuttke said, “European companies now need a roadmap. This will give them with the confidence they need to commit more to China’s future development in these economically challenging times.” “Despite slowing and L-shaped growth, China’s economy could be powered for another two or three decades of high-quality expansion by measures including further pruning overcapacity, supply side transformation and strengthening innovation,” said Roland Berger CEO Charles-? douard Bou?e. “Addressing these tasks and the challenges highlighted by the Business Confidence Survey will ensure both that all of this growth ultimately takes place and that European business is able to make a major contribution toward attaining it.” August 2016 • ScandAsia.China 13
Swedish Priest : What I’ve learned in Hong Kong By Frederik Guy Hoff Sonne
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nders Johansson was constituted as the Swedish priest in Hong Kong October 2014. He shares his experiences and thoughts about his position and the Church’s role in Hong Kong after almost two years of practices. When Anders Johansson left Sweden in the autumn of 2014 he left behind 20 years of Ministry Priest duty in Kalmar. He left the historical Kalmar Cathedral build in 1703 and he left the steadfast local churchgoers, a 10-man church team and fairly good means available in the church’s budget. Altogether a very normal and, in his own words, “spoiled” position as a priest. What he arrived to was ministerial work in an area that is incomparable to his former parish in Kalmar, covering Hong Kong and China as the sole representative for the Swedish Church but with assistance from his wife, Kerstin Johansson, managing with significantly smaller means and no permanent physical church for sermons and other duties. Adding to this Hong Kong and China is a revolving door to business people and momentary positions, which means an ever changing expat community.
A restless community “People are almost never coming here to stay 14 ScandAsia.China • August 2016
permanently. They are always on the run, it’s a restless community in one sense or dynamic on might say. It’s changing all the time and that is of course a challenge for me”, begins Anders Johansson. In Kalmar he could plan his work for the long-term. He would ask himself how to act with the congregations and the municipality and make a plan for the coming 3-4 years. In Hong Kong that’s impossible; for one thing because the contract only runs for three years. Also there would be a core of churchgoers in Kalmar. In Hong Kong the faces turn up, only to fade away just often, which requires a different approach to Anders’ work. “In one way I do more pioneering work here in Hong Kong and China than I used to in Sweden. When the community change so swiftly, I constantly have to try and engage and meet new people.”
A church without a church Anders is not one to complain though; the work is just different, with one of the main differences being the absence of a permanent church. The church can accommodate for sermons and so on, but it’s different. “In Kalmar they had a room to sit in, light a candle, make a prayer and get inner peace. A
place to go to basically. We don’t have that in the same way here, so my main task is to be present in as many different situations as possible to create awareness of the church. Of course I’m still not the church, but just a representative”, he says. This brings him more out of the office and “out in the field” for meetings in Hong Kong - in the park, in restaurants etc. and of course to meet the congregations in Shanghai, Beijing and Taipei once every month.
The church as a cultural embassy As it goes for every church abroad the Swedish Church in Hong Kong plays an important role for the expat community. Being a small village in a big society, running a church for people who are foreigners in a country changes what the church represent to people. Anders explains: “Of course we’re first and foremost a church, but for many people who are abroad we’re also a representative for Sweden. In that way this is also a kind of cultural embassy”. For some people the church is the only place where you can go and have an open conversation in Swedish. As a foreigner there’s a greater risk of feeling lonely. Conversation about different problems and concerns that one would have with friends or family at home, is not
It’s a good challenge. You learn to be creative to find solutions and get as much as possible arranged and done with very small means. I think that is the future of the church, that we’ll have to get used to. We (the church of Sweden) have been very privileged in economic terms so far.
possible in the same way when you live abroad, thinks Anders. He has professional secrecy in his position, but he tells that the concerns people come to him to talk about are largely the same as back home. In a church abroad there’s also a ver y different demographic to the church in Sweden, because people doesn’t necessarily attend out of deep-rooted believe in Christianity. “The sermons have to be different here. You have to be speaking the same language as the people attending and if they’re not that familiar with the church, I’ll have to adjust to that,” he says.
others that are less privileged”. This fits perfectly to Anders’ values for the church as an institution. It’s important for him to engage and educate in the surroundings of the church. ”Even in Hong Kong there is a social need, there are people in situations far away from the luxury and the fashionable lifestyle that is often associated with this city.” He has tried to incorporate education on this and create awareness of the life of asylum seekers and migrants with his confirmands for example.
A will to help
As society modernizes it secularization and traditional religion becomes less important, it is said in common social science. The Swedish Church statistics on members tells the same story: since 2004 (and probably earlier) there’s been at least four times more members leaving the church than new ones entering. With continuously falling member numbers, Swedish churches might have to overcome many challenges in the future. In that sense the priest feels practicing as the priest in Hong Kong has strengthened him for the future. One challenge could be joggling with a smaller budget - something he has gotten used to.
Another difference in demography in the church comes out of why people are in Hong Kong. People working abroad, often puts them in a somewhat privileged position financially. “The Swedes in Hong Kong have one thing in common: they’re very skilled, that’s why they are here. This means the social need is not that the churchgoers or our community is out of money”, Anders Johansson explains. This fact creates a social will to help, he says: ”When you have a good economic situation, it’s not just about keeping as much as possible for your self. It can also open up the will to do something for
Defining a modern church
“It’s a good challenge. You learn to be creative to find solutions and get as much as possible arranged and done with ver y small means. I think that is the future of the church, that we’ll have to get used to. We (the church of Sweden) have been very privileged in economic terms so far.” One of the solutions, which have been a necessity for churches abroad for a long time, is the need for voluntarily engagement from the congregation. It is especially impor tant, when covering such a big region, as Anders Johansson rarely can be present in China. This means “that people need to engage if they want something to happen. It’s very dependent on the people,” he says. “That’s one of my greatest learnings that without people suppor ting it the church wouldn’t mean anything. To some extent when people meet in this community it’s the church that meet”. Ander s Johansson’s contract r uns out October this year. At the time of the interview he had not yet decided whether to apply for an extension or not.
August 2016 • ScandAsia.China 15
Thanks to the School of Economics’ long-standing relationships with partner universities and companies in China, we are able to provide the participants with visits to innovative and successful companies and teaching modules at reputed universities.
China week
for Gothenburg Executive MBA students
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uring eight intense days in Hangzhou and Shanghai, the participants of the Executive MBA program at the University of Gothenburg have had the opportunity to study China’s economy on site. Given the global uncertainty about how the Chinese growth will develop this year’s study tour participants is extra valuable. The stay in Shanghai and Hangzhou, which in May ran without interruption over a week, is an integral part of the Executive MBA program. Parallel to the study of Chinese and multinational companies, participants have studied logistics and Chinese business culture at two of China’s top universities, Zhejiang University and Shanghai Jiao Tong University. Par ticipants of the program have diverse backgrounds and are active in various industries. The common denominator is that they all are business leaders, in this year’s group representing global companies such as SKF, AstraZeneca, Volvo Cars, AB Volvo, AECOM and Etteplan. The Executive MBA program, which stretches part-time over 21 months, has a clear focus on growth markets in Asia and aims to strengthen the par ticipants’ skills in terms of business in countries like China and India. The Education week in China is divided into two parts: four days in Hangzhou and four days in Shanghai. Hangzhou, with its population of 16 ScandAsia.China • August 2016
nine million people is the capital of Zhejiang province, which is characterized by a tradition of Chinese entrepreneurship. Geely and Alibaba are two well-known examples of successful growth companies with headquarters there. “China is a very interesting market that is now clearly about to leave its role as the factory of the world economy factory and instead mainly be driven by domestic purchasing power. Staff turnover in Chinese companies is a common problem, affecting all businesses. During their stay in China, I understood more about the culture that drives people’s decision to change careers. I hope to discuss this insight with our HR business partners to see if we can improve our current personnel policy in China, “says Anna SundgrenAndersson, Head of Clinical Development at AstraZeneca. “What would I say to someone who asks for advice to sell to China? It’s easy to fall for the sheer size of the Chinese market, but you still have to carefully choose the segments you focus on and be clear about what differentiates your offering. The pitfalls are many, and therefore I would advise to first find a Chinese par tner with the right local networks, “concludes Lionel Boubli, Head of Demand Chain and IT on SKF Aerospace BU. During their eight days participants visited among other companies Geely, Sunwin Bus, Shanghai Harbour and Jiashan Green Logistic
Center. They also met managers working on site in China for companies such as Volvo Car Group, AstraZeneca, Ericsson and SEB. “Thanks to the School of Economics’ longstanding relationships with partner universities and companies in China, we are able to provide the par ticipants with visits to innovative and successful companies and teaching modules at reputed universities. Through roundtable discussions and networking meetings with managers stationed in China, one also gets a much better understanding of what is required today in order to have business success in China, “comments Håkan Ericson, President GU School of Executive Education at the School of Business, Economics and Law in Gothenburg. The different phases of the course during the trip includes themes such as innovation in China, Chinese business practices, culture and leadership, CSR and sourcing, the establishment of startups in China, as well as logistics. Both Zhejiang University and Shanghai Jiao Tong University are ranked as among some of China’s best universities. GU School of Executive Education provides Sweden’s only AMBA-accredited Executive MBA program, as well as customised educations aimed at Nordic companies with an international focus. The educations are provided in the U.S, India, Singapore, Hong Kong, China and South Korea, among others.
Ramboll first foreign company to design Chinese wind farm
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ind and solar power is i n c r e a s i n g ly b e c o m i n g a par t of China’s future ener gy supply and the construction of offshore wind is on the rise. China is now constructing one of its 10 first offshore wind farms, consisting of 100 turbines with a capacity of 400 megawatts, which amounts to the total energy consumption of 35,000 households or the production of a small coal-fired power plant. The SPIC Binhai North Phase 2 Offshore Wind Farm in the Jiangsu province, five hours north of Shanghai, will be one of China’s largest. Denmark’s Ramboll will, as the first nonChinese company, be designing the wind farm. The contract of more than EUR 4 million includes design of the 100 steel turbine foundations, the 400 MW substation, concept for the transformers, breakers and cables, as well as developing the design basis for waves, currents and geotechnical conditions. The project is a continuation of phase 1, where Ramboll was the head designer of the turbine foundations. This will be the first time a single consultant on an offshore wind farm will design this large part of the total project. The wind farm will be located 22 km off the coast in an area prone to earthquakes and very soft soil-conditions, where the seabed consists of deposits washed out by the large rivers, which
poses a high risk of soil liquefaction. This puts unique demands on the design and construction of the foundations that will be placed 60 m below seabed, in order to support the turbines in depths of 14-18 m. “This project is exciting because the soft soil conditions in the Jiangsu province challenges us to design differently from what we are used to in the Northern European market. The technical challenges and the sheer scale of the project requires us to draw on skills from the entire business, and this is where we see the advantages of being a multi-disciplinary consultancy”, Søren Juel Petersen, Global Market Director in Ramboll Energy and Project Director of the SPIC Binhai North, explains. The Chinese wind power market is the largest worldwide with a global market share of 52%, according to the World Wind Energy Association, and the expectations for the country as the next big offshore market are big. China is currently planning to install 10 gigawatts of offshore wind energy before the end of 2020, which amounts to 25 wind farms the size of the recent Anholt Wind Farm in Denmark. “As the most populous country in the world, China has recognised the need to utilise more sustainable energy in order to meet the rise in demand of energy and to increase the air quality. The growing offshore wind industry presents
an opportunity for increased exports, not only for Ramboll’s spearhead ser vice – designing foundations for offshore wind turbines – but also for all the other disciplines that we provide when designing wind farms.We hope that this milestone project will pave the way for future projects in China”, Søren Juel Petersen says. The first power of the SPIC Binhai North wind farm is scheduled for 31 December 2016. Compared to similar wind farms in Europe, this project will be done in half the time. Ramboll’s ability to deliver cost-efficient results very quickly during phase 1 of the project was therefore critical in securing the winning bid for the second phase. Experts from across Ramboll carres out the project in close cooperation with Ramboll Environ in China. The client is Huadong Engineer ing Corporation. The developer and owner of the wind farm is State Power Investment Corporation (SPIC). SPIC is a large state-owned enterprise committed to developing sustainable energy and in doing so staying globally competitive. SPIC is present in 36 countries and is through its subsidiary SPIC Jiangsu Offshore Wind Power Ltd. interested in engaging with local partners to establish presence on the European offshore wind market.
August 2016 • ScandAsia.China 17
Ericsson in crisis: CEO fired, suspicions of corruption
Mats H. Olsson
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ricsson (the Swedish world leader in communications technology and services) is in a leadership crisis and being investigated on corruption. The corporation also announced that large lay-offs are imminent. With mounting pressure on Ericsson its Board of Directors announced on 25 July 2016, in the middle of the Swedish vacation break, that its President and CEO Hans Vestberg was stepping down with immediate effect. Jan Frykhammar, Executive Vice President and CFO, will assume the CEO position until a new CEO is in office. This follows on Ericsson in early June firing its former Chairman of Region North East Asia and Senior Vice President Asia-Pacific, Mats H. Olsson (who has previously been accused of corruption with regard to Ericsson’s Chinese operations, according to Swedish daily Svenska Dagbladet – SvD.) On 27 May SvD repor ted that Ericsson’s management team had since 2010 has cost shareholders 1.3 billion, of which CEO Hans Vestberg 265 million. The salaries of the telecom giant’s top executives has increased and are significantly higher than in other large listed companies. Meanwhile the stock has gone into disrepair. Dissatisfaction with Ericsson rose on the stock market after the weak first quarter report and a poor share price performance over time. After the report, earnings estimates for 2016 turned down sharply. The criticism had been hard on CEO Hans Vestberg who had been able to take a cash bonus of just over SEK 16 million in 2015, especially as the company had not revealed exactly what criteria is the basis for payment. Ericsson has lost nearly a third of its market value in the past five years, while the Stockholm 18 ScandAsia.China • August 2016
Hans Vestberg Stock Exchange has risen by about 30 per cent. Since Hans Vestberg was appointed CEO on 1 January 2010, the Stockholm Stock Exchange index has risen by almost 60 per cent, while Ericsson’s stock has fallen by about 5 per cent, said the SvD news report. Jan Frykhammar takes on the role as CEO until a new CEO can be appointed, while Carl Mellander is appointed acting CFO. Hans Vestberg leaves all assignments, effective immediately, said a press release. During his years with Ericsson Hans Vestberg held various positions in China, Sweden, Chile and Brazil. “Hans Vestberg has led the company for seven years through significant industry and company transformation. Hans has been instrumental in building strong relationships with key customers around the world and his leadership and energy have been an inspiration to employees and leaders across Ericsson. However, in the current environment and as the company accelerates its strategy execution, the Board of Directors has decided that the time is right for a new leader to drive the next phase in Ericsson’s development,” said Chairman of the Board Leif Johansson. As recently as on 1 July Ericsson announced a series of organizational and structural changes to strengthen strategy execution to drive growth and profitability. A new Executive Leadership Team (ELT), was then appointed, still with Hans Vestberg as CEO. “As we move into a new phase of the company development I want to give a special recognition and thanks to the leaving ELT members. They have been instrumental in building our market leadership and setting us on our current path of change,” said Hans Vestberg, President and CEO of Ericsson. Ericsson also stated on 25 July that in conjunction to presenting its earnings repor t
for the second quarter on July 19, the company presented a strong action plan to significantly reduce cost and adapt to the current market environment. “As stated in the repor t the Board fully supports the cost reduction plans. In addition, the Board suppor ts the company business strategy and new company structure,” Johansson continued. In addition Ericsson on 17 June commented on recent media reports on questions concerning corruption, following information revealed by SvD, that the Swedish telecom giant is being probed by US authorities on suspicions of corruption, said to include operations in China. “In March 2013, Ericsson received a voluntary request from US Authorities to answer a number of questions relating to Ericsson’s operations, something we have also confirmed to media in 2013. Ericsson cooperates with US Authorities to answer these and additional questions,” stated Ericsson’s press release. “While we strive to at all times conduct our business in compliance with applicable laws, matters do arise from time to time as a result of the global nature of our business.” “We will not provide any detailed comments on the request as such, but can say that it relates to Ericsson’s anti-corruption program and questions related to the Foreign Corrupt Practices Act. Ericsson cooperates with US Authorities and works diligently to answer the questions.” On 10 June SvD reported that the company’s chief executive for Asia, Mats H Olsson, was suddenly forced to leave the company prematurely, according to SvD Näringsliv sources. Ericsson confirmed the retirement but said it concerned the already announced reorganization. Mats H Olsson, who was to leave Ericsson on 1 July, has worked for Ericsson since the early 1980s and since 1984 has worked for the telecommunications giant in Asia. He has held a variety of positions, including Head of Ericsson in China. As recently as February, Mats H Olsson, then titled Asia Manager, precided over the start of construction of a new Ericsson factory in India, with Prime Minister Stefan Löfven in attendance at the grand ceremony. Ericsson announced at the same time that the company will double its Indian workforce to 40,000 employees in just a few years. SvD sources testifed that Ericsson’s internal auditors have initiated a review of Olsson’s activities during his many years as manager. The reaction at the Ericsson office in Hong Kong was described as shocking as Olsson in late May were visited by staff from Ericsson headquarters. Olsson was deprived of keys, access cards and computers at the same time as he was escorted out of the building, according to SvD.
August 2016 • ScandAsia.China 19
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