A visitor recently put it succinctly: “Why does everyone here want to be an engineer?”
It was an unwittingly incisive observation. Engineering is traditionally considered a “respectable” degree in India – a route out of poverty and into a well-paid job. But there may be fewer of those jobs to go round.
Another German Mittelstand has been snapped up by a Chinese manufacturer, this time in textiles.
Hong Kong-based Fong’s Industries has just completed its acquisition of Monforts, based just outside Dusseldorf, in the latest example of how Chinese companies are eager to purchase world-class engineering skills and innovation as well as market share in the developed world.
You might think that Zoomlion, a Chinese construction machinery maker, ought to focus on bricks-and-mortar projects, but it just can’t seem to resist the siren call of high finance.
First it ramped up its lending business, providing vast amounts of credit to its customers. Now it’s getting into the insurance trade.
By Eunice Kang of mergermarket
Posco Engineering & Construction has become the first Korean engineering company to make a South American acquisition. The construction unit of South Korea’s steel giant announced on Wednesday that it would acquire a 70 per cent stake in Santos CMI, an Ecuadorian counterpart, for $72m.
While the deal is small, it gives Posco E&C first-mover advantage and a foothold in a continent where construction is set to boom over the next few years.
For multinationals, operate extensively in emerging markets is one thing. To make lots of money is another. Siemens is mastering both tricks at the moment, judging by the German engineering group’s first quarter results, which showed a 17 per cent increase in profits from continuing operations to €1.8bn, powered by business from emerging markets.
Emerging market revenues rose 16 per cent to €5.75bn – or 29 per cent of the total – with jumps of 29 per cent jump in China and 38 per cent in India. Emerging market new orders posted even more dramatic numbers – a 31 per cent increase to €7.8bn – or 35% of the total – with gains of 49 per cent in China and 160 per cent in India. No wonder that Peter Löscher, chief executive, is one of Germany’s greatest advocates of rapid globalisation.