innovation across borders - session 4 marvin de vries
TRANSCRIPT
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Trojan Technologies
Doing Business in China
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Global Offices with staff of 700Canada London & Guelph (475)US Multiple locations (155) Europe 5 Offices (40)China Multiple locations (30)
• >$200M in sales
• >15% CAGR since 2003
• 5.0% investment in R & D
• Over 6,500 municipal UV installations on 6 continents,treating over 1000 m3/sec
• >100 new jobs in Canada during 2008-2010
• Partnerships: Over 200 offices in 90 countries on 6 continents
• Logistics & Manufacturing in Canada, US, Europe and China
TROJAN - BUSINESS OVERVIEW
Winner of the 2009 Stockholm Water Industry Award
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Disinfection UV Oxidation
Inactivation of bacteria, viruses and other pathogens through nucleic acid disruption by UV photons
Destruction of chemical contaminants via direct UV photolysis and UV light-induced activation of hydrogen peroxide (UV-oxidation)
WATER PURIFICATION WITH ULTRAVIOLET LIGHT
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Municipal Drinking Water – New York City – 100 m3/s
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Trojan Installation in Binhe, CHINA Trojan Voted #1 Disinfection Brand in China for last 3 years
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Why Go to China?
• Significant problem of water scarcity
• Water treatment is a stated China government priority
• Potentially large market – business growth opportunity
But …
• Lot’s of “bad news” stories – JV’s gone bad, IP knock-offs
Strategic Opportunity
• Develop the capacity to compete “anywhere” and win
• Invest in a China-based Product Development Centre to develop capacity to innovate at “China pace” for Low
& Medium Price Point markets
• Leverage partnerships at appropriate level
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performance
Trojan
#1
2005 UV Product Picture – China pr
ice
poin
t
lo
w
med
ium
hig
h
#1
#2
#3
#2
Situation:
Start of 11th 5 year plan, municipal waste water market. Primarily big projects.
International brands introduced into China. Local competitors started to emerge.
International
Local
Trojan
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performance
Trojan
#1
2009 UV Product Picture – China pr
ice
poin
t
low
med
ium
hi
gh
#1
#2
#5#6
#3
#4
Situation:
End of 11th 5 year plan. Projects shift to smaller urban centers.
More local competitors entered into market. Local competitors put added pricing pressure into market.
International
Local
Trojan
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performance
2011 UV Product Picture – China pr
ice
poin
t
low
med
ium
hi
gh
New Trojan
Situation:
12th 5 year plan. Projects in smaller urban centers.
Trojan introduces 2 new products to address High and Medium Price point segments of market.
International
Local
Trojan
#6
#1
#2
#4#5
#3
New Trojan
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Sustaining Competitive Advantage
• Requirement: Be cost-competitive vs. local competitors
• Begin with extensive market assessment of customer “must have’s”
• Cost reduce quickly through China team’s expertise:
– “bare bones / high quality”
– ultra cost-conscious at component level
– “intense” collaboration with local component suppliers
• Achieve incremental cost breakthrough via new core technology
• 2 year assignment in Shanghai for Senior research leader from Canada
• Full integration with London-based team
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