ScandAsia China - August 2016

AUG 2016
Scandinavian
design
on the Hong Kong market
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Coming Events
AUG 2016
DCCC: Welcome Back Party
Scandinavian
design
on the Hong Kong market
Where: The Royal Danish Embassy in Beijing
When: 2 Sep 2:00 - 01:00
Annual Crayfish Party
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!
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Where: By the pool at Royal Hong Kong Yacht Club, Causeway Bay,
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When: 9 September 2016, 7.30 PM - 12.30 AM
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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
tell the story of their journey, share experiences
and discuss common challenges.
Registration opens in September.
Source: Swedish Chamber of Commerce in China,
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August 2016 • ScandAsia.China 3

News Brief
Swedcham HK Young
Professionals celebrates
Midsummer!
30 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

At KIS International School in Bangkok, Thailand, all students
can shine. The midsize, caring community allows KIS students
unique dreams and strengths. The school is a full IB school,
“With the power of imagination,
Jun, Grade 11.
age groups (IB Primary Years Programme, IB Middle Years
Programme and IB Diploma), ensuring an academically
rigorous curriculum that not only prepares students to be
successful at university, but also teaches important life skills.
KIS, it’s all about Knowledge, Inspiration and Spirit.
Check out the students’ videos to learn more
about their passion www.kis.ac.th
World School
Accredited
Bangkok, Thailand
Tel: +66 (0) 2274 3444
Email: admissions@kis.ac.th
August 2016 • ScandAsia.China 5

News Brief
Chinese delegation visits Swedish
municipalities
On 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 efforts in
general and urban planning in particular.
Representatives from Lanzhou Municipality in
Ural Airlines brings more Chinese visitors
to Finland
The 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
airport in Chinese will start working in the
summer. Employees with Chinese language skills
have been hired by Finavia’s customer service
6 ScandAsia.China • August 2016
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.
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 services with focus on safety,
customer-orientation and cost efficiency.
Finavia’s comprehensive network of 22 airports
enables international connections from Finland
- and to different parts of Finland. Helsinki
Airport is the leading Northern 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
18 - 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

Aritco’s home lifts enters China
News Brief
Aritco (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 start 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
A
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 particles 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
China has on 3 June confirmed that it is
lifting its import 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 efforts 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 start 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
imports 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 birth defects and stillbirths
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.
On 21 June media reported 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 framework 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 cars 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

Finnish district heating analysis for China
News Brief
VTT 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 10-
20% 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 Ministry of Housing, Urban
and Rural Development (MoHURD) requested
Finland to analyse the results and draw up
a handbook on building-specific district
heating centres to support 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 secondary 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 opportunity. 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 report 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 Northern China.
Finnish Company receives social responsibility recognition in China
Finnish 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
Hong Kong is the sparkling design
hub of the Asia. It’s hip, wealthy
and carries 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 expert 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 art and design world and
a Hong Kong-expert. 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.

ong 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 Contemporary art 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”.
Persson 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 part of Scandinavian
design and has been for many years. So in this
aspect we’re far ahead.” Persson explains.
For Persson 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 story. “Now I’m very
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 comfort.
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
On 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 report 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 arbitrary legal
system – effective enforcement of intellectual
property rights throughout China’s provinces is
highly inconsistent. Nearly half of respondents
report 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
Anders 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 very
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.
A will to help
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
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.
Defining a modern church
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.
“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.”
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 important, 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 supporting it the church
wouldn’t mean anything. To some extent when
people meet in this community it’s the church
that meet”.
Anders Johansson’s contract runs 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
During 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.
Participants 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 participants’ 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 Sundgren-
Andersson, 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 partner 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 participants 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
Wind and solar power is
increasingly becoming
a part of China’s future
energy 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 non-
Chinese 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 service – 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 Engineering
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
Ericsson (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 reported 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 report
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 report the Board fully
supports the cost reduction plans. In addition,
the Board supports 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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