8th Day (19th March 2007)

Sunten Technology




The main products of the company are:
o Dry type transformer (8 billion sales)
o Rector
o Substation (3rd in the world)
o Switch Gear for industrial use (1-1.5 billion sales)

Their current strength of workers is 1500 workers. Amongst the workers, 600 are university graduates. Production workers take up to 900 heads. The company is actually established in 1988 since then it’s currently 19 years old. In 1996 it is the first to set up 160 000 KVA and in 2000 it set up 200,000 KVA. The company is well recognized for their product quality as they check every product thoroughly. It product has basically been awarded in
o ISO
o Environmental Friendly
o Daily operation is very important
o Germany imported technology and facilities






They have also keep close in relationship with the following universities:
o General Electric
o Tsinghua University
o Xi An Jiao Tong University

Exzition Transformer is one of their best products as well and it is used in most of the large operating dams.

Methods of sales used by Sunten were:
o One way business transactions
o Agent sales were in its minimal
o Two way business transactions

Sales orders are firstly received, and then the order is eventually separated and distributed out evenly to the workers. Production at the end of the day has to go through a quality check and then the final product is obtained. The final product will then be delivered to the consumers or buyers.

Regular outings are carried out to help foster the relationship between workers. Other services provided by the company are to the airport, railway stations and big shopping malls. It is mentioned during the Q and A session that the challenges met by the company was when the price of copper has raised rapidly over the years, so has the price of the steel. These are all raw materials of the production. The time delay of production to the actual sales has a big gap therefore its harder to predict the growth of the price, this eventually results in the lose in the difference of materials prices. This can be a very significant amount of loss made by the company.

Next challenge met by the company was the growth of competitors. They had provide many similar services and products. Internal company problem was another challenge to the company as well, these problems are mainly, capital, and labour. Its capital has to be enough to buy the raw materials as it is constantly picking up in its cost as mentioned. Next is the labour, as university grads for example they job hops frequently. They will stay for a year or so just to gain enough work experience and leave for a better job.



The next question asked during the question and answer time by the team was; what are the basic things foreign investors should equip themselves. The response given by the presenter was that one must have the correct mindset and the knowledge of the culture in China is very important. It is important that your own set of culture and China’s culture must not clash. Main Zi is important as well as said by the presenter. It is said that one should “ru xiang shui su”. The company should be able to make use of the local to work for them, so that one will be able to understand the culture of the local better through its local workers.

Thereafter “Guan Xi” can then be formed. It is again advice that “Guan Xi” serve as only an enhancer, to help smoothen the business. When the company meets with any problems, the local workers who are more familiar with how things work in China will be able to help the company solve the problem to a certain extend which non local is unable to.

It is expressed, as well that market share is important. No market share will eventually means no sales and business failure is unavoidable. One will have to study the surrounding environment carefully before deciding in any actions taken. For example if main consumers of the company comes from the locals in China. Therefore the company will have to focus on the local needs and meet their requirements.

The company has advertised its products faithfully. But the presenter has expressed that he feels that advertisement is a short-term solution. Good quality of the product is still the key to business deals and successful stories. The company being the first one to set up such a company is therefore rich with experience, this has been their main selling point and support to its excellent quality in product.

He also mentioned that the reduction in tax is only a short-term attraction of foreign investors. In the long term aspect, companies do not take that as a major component that is able to affect their finally decision making. The company has also opened itself to ke ji ta hui. Main countries that use the company’s products are:
o Dubai
o Hong Kong
o Maccu
o Zhong Dong as the biggest consumer.