fccc members' portrait in china atlas copco: providing industrial

F C C C M E M B E R S ’ P O R T R A I TIN CHINAOCTOBER 2009ATLAS COPCO: PROVIDING INDUSTRIALPRODUCTIVITY SOLUTIONS IN A FAST-GROWING MARKET11 production plants in China, and stillinvestingThe Sweden-based Atlas Copco Group, aworld leader in industrial productivity solutions,is active in 160 markets and sells itsequipment in almost all countries around theworld. Its products and services range fromcompressed-gas and compressed-air equipment,generators, construction and miningequipment, industrial tools and assemblysystems to related aftermarket and rentalactivities. The Group has 11 production facilitiesin China, with its flagship site for compressorslocated in Wuxi, Jiangsu province.The Group also has 114 field offices and 635dealers in the country. In China, Atlas Copcoproduces air and gas compressors and generatorsfor a wide range of sectors, includingoil, industry and ports. Equipment for theconstruction and mining sector is also in veryAtlas Copco (Wuxi) Compressor Co.great demand in China, production for thissector being concentrated in Nanjing, said Jos Van Beneden, General Manager of Atlas Copco (Wuxi)Compressor Co. When Atlas Copco acquired Dynapac, it also gained a facility in Tianjin. The plant inAntwerp is Atlas Copco’s largest production facility for compressors worldwide, closely followed by itsWuxi facility. “That’s partly why I was interested in Wuxi”, said Van Beneden.FCCC Members’ Portrait in China No 14, October 20091Shared services necessitate central guidance for a decentralised administrationThe financial management of the Atlas Copco Group can be characterised as a centrally guideddecentralised administration, with the same core guidelines and procedures implemented throughoutthe entire Group, while each site has a decentralised administration. Engineering support is availablein India, and Atlas Copco has its own bank for internal financing. On the other hand, each companyin the Group emphasises its local management. “We highly value people’s development”, said JosVan Beneden. “We have three expatriates here for the moment, and when I leave China I hope myjob will be taken over by a Chinese professional”, he went on. The company strives to be a preferredemployer and aims to attract, develop and hold onto qualified, motivated individuals in a professionalenvironment.Recently, Atlas Copco (Wuxi) Compressor received a ‘Very Good (Green)’ company certificate fromWuxi’s Municipal Environmental Protection Bureau. The Water for All programme, which is organisedand managed by Atlas Copco employees, is promoted by the Group’s headquarters in all its companies.Last year it came to China. Under the scheme, Atlas Copco donates one yuan for every oneyuan contributed by the Group’s employees,. So far, 90% of staff on the payroll of Atlas Copco (Wuxi)Compressor have contributed to the programme.The strategy of the Group is to go for wholly-owned subsidiaries. All Atlas Copco companies in Chinaare centralised within a single holding company, the Shanghai-based Atlas Copco (China) InvestmentCo.. Thomas Kung, based in Hong Kong, is its Chairman and the Swede Magnus Gyllo is its VicePresident. The Group also has a trading company and distribution spare parts centre in Shanghai.Edward Jones is Regional General Manager for the Shanghai-based Compressor Technique.

• Atlas Copco (Nanjing) Construction and Mining Equipment, producing surface drill rigs and undergroundrock excavation equipment for the domestic and export markets.• Atlas Copco (Wuxi) Exploration Equipment, producing diamond bits and reaming shells.• Atlas Copco (Shenyang) Construction and Mining Equipment, producing Shenyang-branded pneumatic/hydraulic rock drills and Atlas Copco pneumatic tools and hydraulic breakers for the construction andmining industries.• Shenyang Rui Feng Machinery, producing components for Atlas Copco (Shenyang).• Atlas Copco (Zhangjiakou) Construction and Mining Equipment, producing surface/underground drill rigsand rock drilling tools.• Dynapac (China) Compaction and Paving Equipment, producing compacting and paving equipment.• Tooltec (Qingdao) Tool Co., producing Industrial Technique pneumatic tools for export.All the above companies also provide sales and after-sales services.Retaining qualified personnel“Retaining qualified employees is a big challenge”, admitted Van Beneden. “Over the past two yearswe have been recruiting on university campuses. Three key people in engineering and three in purchasingattended a two-year training course in Antwerp and have now returned to the factory in Wuxias project leaders. During the present crisis it is important to hang on to a well-trained workforce.The Group has also scaled up in-sourcing again, so it is producing more of its own products. Anothercrucial factor is excellent communication and cooperation with suppliers, which makes many thingspossible”, Van Beneden concluded. Atlas Copco (Wuxi) started to feel the effects of the crisis back inSeptember last year, but took swift action, so the Group’s situation started to improve in February.Jos Van Beneden has also launched a traffic safety campaign in the company because he felt responsiblewhen his employees were involved in traffic accidents. “Now that I have warned them to becareful, it is their responsibility to avoid taking risks in traffic and to follow traffic rules”, Van Benedenexplained.Flemish CEO to head Atlas Copco GroupIn June, the 52-year old Ronnie Leten, a Fleming born in Limburg, became the Atlas Copco’s Group’sChairman and CEO, taking over from Gunnar Brock. It is only the second time since Atlas Copco wasfounded in 1873, that a non-Swede has been appointed head of the Group, which had 34,000 employeesworldwide in 2008. Ronnie Leten started his career at Atlas Copco in 1985 and rose throughthe ranks to become head of its Airtec Division in 1999 and of the Industrial Air Division in 2001. Since2006, Ronnie Leten had been CEO of the Compressor Technique business area and of Atlas CopcoAirpower NV/SA in Wilrijk, near Antwerp. He relocated from Mol to Stockholm to lead the Group.FCCC Members’ Portrait in China No 14, October 20093Jos Van BenedenLearning from experiencesJos Van Beneden has some advice to give companies thinking of investing in China, saying thatanyone “only starting to think about doing so now is way too late except when the presence in theChinese market with manufacturing or a strong sales organisation is a priority.” Before any companytakes the plunge, he suggests it contact other well-established companies in China to learn from theirexperiences. They would also do well to contact local companies intent on attracting foreign investment.Atlas Copco’s man in ChinaJos Van Beneden is an Atlas Copco veteran, spending five years in Germany for the Groupfrom 1996 to 2000, followed by four years in France. In 2004, he went to China to becomeGeneral Manager of Atlas Copco Wuxi after the Group decided to double the company’sproduction capacity in China.His wife accompanied him to China and the couple feels at home in Wuxi and are not enviousof others living in bigger cities like Shanghai and Beijing. Communication is sometimesdifficult, as Chinese is a difficult language. The Van Benedens visited China for the first timein 2001, on holiday, not knowing that a few years later they would move there.At weekends, Jos likes to play golf, while during the week his wife joins the activities of theWuxi Ladies Club.

Jos Van Beneden’s favouritesJos’s favourite book on China is Wild Swans by Jung Chang, because it shows how things used to bein China, in contrast to all that the country has achieved today.His favourite restaurant is the Provence Steakhouse in Wuxi, which serves French cuisine and is alsowarmly recommended on the Wuxi Life website.Jos Van Beneden’s favourite spot in China is the River Li and the surrounding hills of Yangshuo inGuilin province, which are also depicted on the 20 yuan banknote.Contact informationJos Van Beneden, General ManagerAtlas Copco (Wuxi) Compressor Company, No.22, Changjiang Road, New District,CN-2140028, Wuxi, ChinaTelephone: +86 510 8521 6496; fax: +86 510 8521 1410E-mail: jos.van.beneden@cn.atlascopco.comWebsite: www.atlascopco.comFCCC Members’ Portrait in China No 14, October 20094