OEMS AND SUPPLIERS

Jincheng - An order in record time

CONDUCTING business in China can be extremely time consuming, particularly at the negotiation and...

Staff Reporter

The normal procedure is for all prospective vendors to be invited to China where formal meetings are arranged with the end user and their selected import/export partner. At this meeting the formal request for tenders are issued and discussed. Prospective vendors then submit detailed a technical proposal and quotation.

Meetings then follow to clarify all specifications and adjustments to pricing and other commercial issues so that the scope of supply can be refined. Once this is completed commercial negotiations can begin. The total time for this process is in the region of six months.

In the case of the Shanxi project it was very different. DBT had done some preliminary work on the project. Because of improved coal demand globally and in China in particular, the project was accelerated. Prospective suppliers where invited to Beijing at short notice where the formal issuance of tender bid documents were provided and discussed on April 16. Vendors were advised the system had to delivered before the end of the year 2001.

DBT was able to mobilize a team immediately for technical transfer. The team included Keith O’Neil and Harry Martin of DBT America, Dr. Paschedag and Holger Rusch of DBT Luenen and Peter Cebula of DBT Langfang. Werner Traphan joined the group for the final commercial negotiations.

Normal days immediately lengthened to day and late evening as technical issues were addressed and refined to the point where the commercial negotiations could commence.

By May 22, DBT had received a letter of intent to supply shield supports and AFC system. The deal was concluded in record time.

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