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The CEA was appointed by UK Trade & Investment to plan, recruit and implement the seminar which was held in Ulaanbaatar, Mongolia in order to highlight UK expertise in the construction and mining equipment sectors. The seminar was complemented by a trade mission to Ulaanbaatar and the mining region of the South Gobi (around 600km south of Ulaanbaatar).
The aim of the mission was to explore opportunities in these sectors in Mongolia, assess the scope of the market, identify major players in the sector and better understand the scope of and issues surrounding the Mongolian mining sector.
The Mongolian economy has slowed somewhat from the dizzy heights of 17.5% GDP growth in 2011, due to reduced commodity prices and some political instability between the government and the Oyu Tolgoi (OT) owners, a Rio Tinto led consortium, over licenses and ownership share of the mine.
However, GDP growth was still 12.3% in 2012 and forecast to be around 11% in 2013, depending on the outcome of the Government negotiations with OT (Source: Bloomberg). Initial feedback from the seminar and mission shows a very high level of satisfaction with the programme and mission organisation. Already around £10 million of sales have been reported with several companies having achieved their goal of appointing a distributor.
A recent market study on Mongolia by UK market analyst specialists Off Highway Research, showed a five year equipment sales average of around 1,200 p/a reaching a peak in 2011 of almost 2,200 machines.
This total fell to just over 1,000 machines in 2012 but is forecast to double from 2014 onwards and to 2,700 by 2017.
Ten UK companies, including Aggreko, Brendon Powerwashers, Dosco, Gomaco International, Industrial Power Group, JCB, Off Highway Research Powerscreen, Rapid International and Terex, participated in the seminar and mission with a variety of goals from just scoping the market for opportunities to signing up a distributor or product support. The Seminar attracted over 75 delegates from Mongolia who came to listen to UK speakers showcase the best of UK construction and mining equipment.
Mission Accomplished – Already in excess of almost £10 million of sales have been reported.
Delegates included equipment distributors, end users, government ministries, contractors and funding bodies.
During the rest of the trade mission, missioners received briefings from the British Embassy team, the Mongolian Ministry of Roads and the Ministry of Railways highlighting the massive infrastructure plans underway in Mongolia, and the British Business Group in UB.
Joanna Oliver MBE director of Global programmes at the CEA and seminar and mission organiser said, “The British Embassy team were brilliant – so very helpful and incredibly knowledgeable. Their input and help with the seminar and trade mission contributed greatly towards its success, we could not have done it without them – I look forward to working with the British Embassy team on the next mission to Mongolia!”
While some missioners went on to private meetings, the rest of the missioners flew down to the South Gobi to visit the Oyu Tolgoi (copper and gold) and Energy Resources Tavan Tolgoi (coal) mines.
Mrs Oliver added, “Over 150 invitations were sent out for the seminar to Mongolians and ex-pats in UB. Just over 90 acceptances were received and around 70 delegates attended on the day – apparently a very high percentage by Mongolian standards.
A number of delegates commented that it was one of the largest and certainly best organised events of its kind that they had attended. Comments that our UK event was much better than similar ones organised by the Germans and Americans were especially gratifying!”
The Seminar was chaired by Joanna Oliver MBE and began with an introduction from HE Christopher Stuart, British Ambassador to Mongolia. This was followed by a briefing on rail infrastructure improvement plans from the Mongolian Ministry of Railways. Each UK Company then had up to 30 minutes to make a presentation on their products including Q&A if required.
CEA member company Brendon Power Washers was amongst the British companies participating in the mission, brothers Chris and Rob Hendy represented the company “The first exports for Brendon were in the late 1980’s to the Middle East and developing the export opportunities has always been the company philosophy.” Said Brendon’s export sales director Chris Hendy.
“The main reason that we went on this mission was that three years previous we had supplied some units to a mining company in the Gobi Desert…..and from this we felt that there must be a market for well-engineered, robust equipment.” Added Mr Hendy.
“We also had several other very good contacts in the Country which were keen to enter the market with our products. So as with all new business the only way to develop the trust required, would be a visit and face to face meetings.
Joanna had organised some trips to the local Ministries and talks with the Deputy UK Ambassador for Mongolia. They enlightened us with the current economic and political situations, well worth attending.”
That WOW moment – Chris and Rob Hendy find a Brendon machine in the Gobi Desert!
Mr Hendy concluded, “The trip to the Gobi Desert part was particularly of interest to myself and Rob as potentially we could actually see a "Brendon in the Gobi". Following the visit to the mine we had a Wow! moment as we discovered one of our Brendon Bowserwashers on site!
This was a great first mission for us with the CEA and Joanna, but will certainly not be our last.”
Contact Joanna ([email protected]) for further information. You can download the full mission report from the CEA Website http://www.coneq.org.uk/Mongolia/Mongolian_Seminar_TradeMission_CEAReport_September2013.pdf
Source: CEA