Milestone in conquering global market of curtain walls

(Yuanda Enterprise Group)
Updated: 2008-07-30 00:40

Yuanda Group wins the bid of the project of the railway center for Frankfurt Airport, marking a milestone in Chinese enterprises' road to conquering the global market of curtain walls, windows and doors.

Thanks to the rapid progress in opening-up, China has greatly integrated with the global economy. "Made in China" can be seen in all corners of the world. The overseas development of Chinese enterprises has truly expanded. The stable political climate, economic trend and diligent labor force, underpinned by preferential policies have ensured the rapid development of the Chinese manufacturing industry.

The sector of doors, windows and curtain walls manufacturing is but a small branch of the greater Chinese manufacturing industry. However, along with development of the economy of China, this sector will enter the global market and looks set to thrive. On October 14, 2007, Shenyang Yuanda Enterprise Group announced that, it had won the bid to build the railway center for Frankfurt Airport and has signed the contract valuing at 40.00 million euros. Meanwhile, the group also announced the establishment of the group -- the first enterprise group with a sale of more than 10 billion yuan in the sector of door, windows and curtain wall manufacture of China. It is the first time that such a Chinese enterprise has signed such a contract to undertake so significant a project in Germany, where the glass curtain wall derived from and a number of cutting-edge technologies have been developed. The announcement not only shocked Chinese curtain wall sectors but also shocked the global curtain wall sector.

The curtain wall of the project covers an area of 72,000 m2. Its complicated structure and functions, and short project duration, compund the difficulties related to the construction. The design and construction of the projects require the highest-level technologies now present in the international curtain wall market.

Although Chinese curtain wall enterprises have never stopped exploring the overseas market, and some achievements have been made, such as that Yuanda Group participate in the construction of the No.1 building of Russia, Shenzhen Sanxin Glass Technology Co., Ltd has joined in the project of the Europe Center Hotel in Kazakhstan and, Jiayu Group has joined in the construction of Princess Tower in Dubai, and the overseas projects of Chinese curtain wall enterprises is expanding, most of the countries importing curtain wall from China are developing countries from the Third World. As such it is a great surprise and triumph that such a Chinese enterprise can enter the core European market.

In the European curtain wall market, the Europeans have been used to the "Made in Germany" products because these products are excellent in their details. The loyalty of the customers to the German products allows the German curtain wall enterprises to play a leading role in the European market. So, for a long time, the Chinese enterprises have been bothered with the inaccessibility to the core market of Europe. But, this time, Yuanda Group have successfully entered the market and won the bid of the project of the railway center of Frankfurt Airport by its excellent services and favorable price after prevailing over the local manufactures of doors, windows and curtain walls.

The success of Yuanda Group shows that Chinese manufacturers are capable of exploring and capturing this prized market. The announcement also shocked the European enterprises dealing with the same business. They have started to pay more high attention to Yuanda Group and to wonder whether it can do a good job in the project. In addition, due to the advantages in services and price, more and more Chinese enterprises engaging in the field will enter the European market following the example of Yuanda Group. So the European enterprises will also have to worry about their own survival.

Just as the Normandy Invasion is a turning point of World War 2, the success of Yuanda Group not only marks the progress made by the Chinese manufacturers of doors, windows and curtain walls in the overseas markets, but shows the maturity of these enterprises to "go out" to the international market. The latter is truly significant. Now, the Chinese curtain wall sector is standing at a turning point, where there may be a great change in the world curtain wall market and Chinese enterprise may have a big chance to conquer the field.

Here are some best evidences to prove the discussion above:

China is capable of mass production of the most frequently used materials for making curtain walls, including aluminum products, glass, hardware, silicone adhesives and so on, and the output of them have accounted for a remarkable proportion in the international market; China has a great member of designers and engineers currently engaged in the sector; for each year, half of the quantities of engineering originate in China. It can be seen that, the manufacture of doors, windows and curtain walls is now highly developed and, this sector will only continue to improve by relying and building upon these advantages accumulated.

The analysis shows that, Yuanda Group is not the only enterprise engaged in the sector in the national market, but its success in the overseas markets deserves high appraisal. Its sales in the international market account for nearly 50% of its total sales. The success of Yuanda does not only mean a development of the group itself, but also means that it has blazed a new trail in the overseas market for other Chinese enterprises possibly driving the development of the whole sector.

The development of the global economy and the Chinese economy brings a great opportunity to Chinese manufacturers. As a result, the door, window and curtain wall sector has been put on the international stage. Although many Chinese enterprises have undertaken a great number of overseas projects, none of these projects can compare with the project of the railway center of Frankfurt Airport, the contracting of which shook the local manufacturers that represent the highest level in the sector in the home of the curtain walls. That is why the winning of the bid is recognized as the milestone for Chinese curtain wall enterprises suggesting it symbolizes a change in the pattern of the global curtain wall market.