FLC (ASX) Fluence China

Originally posted by ywtoh: ↑

This article was written in 2019, but all the more relevant today. https://www.fluencecorp.com/fluence-making-china-market-inroads-with-aspiral/

In light of the developments with BEWG this week, it is worthwhile to reproduce some parts of the above article to explain why FLC has entered into a joint research and development co-operation agreement with BEWG.

(1) To build trust relationships.

Moreover, human trust relationships rival technology in the PRC business landscape, and China is becoming more competitive for equipment sales due to pricing and local support. Limits on foreign involvement in projects give products manufactured within the PRC a significantly larger opportunity.

(2) Foreign yet be local.

Fluence has adapted to this landscape by setting a foundation of local manufacturing and local representation. To establish the type of business relationships highly valued by the Chinese, Fluence took time in 2016 and 2017 to set up an infrastructure to meet client expectations, giving the company an edge over competitors.FLC quoted this article on how to do business in China. http://www.launchfactory88.com/how-you-can-find-a-market-within-chinas-industrial-water-sector/As a student of international business, it has been educational to observe why FLC has built up local leadership and local research and development capabilities. To build trust relationships. Foreign, yet be local to help in the cause of assisting in China's development goals.

Leaving you to decide whether FLC is a good proxy to China's growth in sectors approved by the Central Govt.

Expand

@ywtoh

Fluence has done very well for itself in China to date.
But where you say "as a student of international business, it has been educational" ... I would say that only an Israeli business (or maybe a Singaporean one also) could have done what Fluence have done. Had Fluence been considered an Australian or American business, it would never have been able to make the same inroads. More than any other company I have ever seen before, they are assisted by, and leverage Israeli Embassy backing and government schemes. Fluence are part of, and will have to pay dividends to the Israeli Government through the Israel Innovation Authority, but the opportunities it has brought about are worth the cost.

https://www2.deloitte.com/il/en/pages/innovation/article/the_israeli_technological_eco-system.html

Given a few hours, I think I could come up with at least 20-30 direct examples of Fluence worldwide being granted opportunities through the Israeli Government.

From 2016, Emefcy were able to set up their manufacturing base in the Israeli Ci3 Incubator Innovation Park in Changzhou, Jiangsu. The Israeli run park helps with promotion plus IP Protection.

From 2018, this Israeli matchmaking conference docking between Fluence and Hunan Kaitian opened up the Yiyang tripartite agreement, manufacturing hub and led to the agreement with 3 Gorges Group and now BEWG.

More of these are happening in 2021 at various Chinese trade shows.

There have also been these types Israeli Embassy related opportunities in Israel itself, the Philippines, Vietnam, Taiwan, the USA, Australia, South Africa, Ghana, India and opportunities set up in the Middle East and Ethiopia by Israeli investors that I have seen.

These are the types of business approaches in China that Fluence have used helped them thrive.

https://hbr.org/2014/05/right-up-the-middle-how-israeli-firms-go-global

Israel also are the highest recyclers of wastewater in the world at around 90% reused for primarily agricultural irrigation, which gives Israeli water companies a higher profile and respect from other countries trying to emulate that amount of wastewater reuse.

For the Chinese, as an Israeli company, Fluence are not a national threat, and if their MABR technology can help them achieve their targets, then it appears that they will be embraced as a partner.