Making a Chinese brand cool

Aucma redefines refrigeration technology with lifesaving Arktek project for medical industry

Aucma Co Ltd, one of China's largest refrigeration equipment suppliers, is making efforts to reshape Chinese brands as trustworthy and responsible as part of its go-global strategy.

The Qingdao-based company is keen on improving its innovative capability through high-level international cooperation.

For example, in cooperation with the Bill & Melinda Gates Foundation, the company developed a portable, passive cold storage device called Arktek, enhancing its cold chain technology as well as boosting its international reputation.

Arktek, which looks like a green toy bucket, can keep vaccines at temperatures as low as -80 C without extra energy support for a week, according to Ren Yizhao, deputy general manager of the project.

The device proved to be essential in transporting the Ebola vaccine during the outbreak of the disease in West Africa in 2014.

Statistics from the World Health Organization show that around 1.5 million children under age 5 die each year worldwide from illnesses such as diarrhea and pneumonia that can often be prevented with vaccines.

Despite immunization being one of the great success stories in modern medicine, one in five children worldwide remains unprotected, without access to even the most basic vaccines. Some of the biggest challenges come from difficulties in delivering interventions like vaccines.

"With its excellent sealing performance, Arktek can easily be delivered on rugged and rough roads and installed at sanitary stations in remote areas as a vaccine storage device," says Ren. "One Arktek barrel can meet the needs of a village of 6,000 people for a year."

Currently, Arktek has been tested in many countries, such as Nigeria, India, Senegal and Ethiopia, and has been welcomed by consumers there.

However, success was not built in a day.

When the Bill & Melinda Gates Foundation looked for a worldwide partner to invent a refrigeration device that could be used in countries with limited cold chain and ice pack production capacity, Aucma was among the candidates, but not the most hopeful one.

Mark Suzman, president of the foundation's global policy, advocacy and country programs, says that Aucma is "a Chinese enterprise showing great potential for tackling development challenges in sub-Saharan Africa".

"And we share in common devoting our intelligence and efforts to saving lives and improving health conditions in Africa, as well as other countries."

Li Wei, chairman of Aucma Co, was longing to work with world-class teams and cherished the opportunity.

"Earning money is important but does not always take priority," Li says. "To earn a reputation internationally, Aucma needs to first further consolidate its foundation in various areas."

It took two years for Aucma to develop Arktek, reaching WHO standards of quality, safety and efficacy after the cooperation agreement of 2013.

To date, Aucma has sold more than 2,000 Arktek barrels, and the remaining market in Africa alone is estimated to be more than 30,000 units.

Globalgood, a research institute invested in by Bill Gates, has sent several scientists to work with Aucma.

"Through working with and learning from scientists from the United States, our staff has been much inspired and have improved their innovation skills," says Li.

To date, Aucma has also worked with German industrial giants like Siemens and Bosch. The latest development is that the company will build a joint laboratory with Siemens for robot application.

"The collaboration with Siemens brings the latest industry 4.0 technology, as well as enables our staff to learn about the renowned German manufacturing spirit," Li says. "With Bosch, we've learned stricter standards from the Germans."

By working with international manufacturing giants, Aucma has been able to sell its products to more than 100 countries and regions in Asia, the Middle East, Africa and Europe.

Last year, its total sales value stood at 3.75 billion yuan ($562 million; 477 million euros; ￡426 million), up by 4 percent year-on-year, and it sold 500,000 products abroad for 620 million yuan, up by 20 percent.

With China's Belt and Road Initiative, Aucma sees more opportunities.

This year, it set up joint ventures in Malaysia and Nigeria. Both are expected to begin operations by the end of this year.

"The Belt and Road Initiative does not mean only selling our products or transferring overcapacity to other countries and regions," says Li.

Aucma brings the latest technical skills and managerial concepts to its overseas plants. It hires and trains a number of local employees, helping local economies to grow.

"We study local laws and regulations, respect and try to understand local cultures and insist on win-win or even all-win with local partners as well as consumers."

Founded in 1987 and listed on the Shanghai Stock Exchange in 2000, Aucma has products ranging from freezers to refrigerators to household appliances. It also specializes in cold-chain products, cold-chain logistics equipment, cryogenic equipment, washing machines, air conditioners and vending machines.

In June, the World Brand Lab said Aucma was among the top 500 most valuable brands in China, with brand value estimated at 28.6 billion yuan.

xiechuanjiao@chinadaily.com.cn

(China Daily European Weekly 10/13/2017 page29)