Back when the Chinese government was encouragingstate-owned enterprises and private sectorcompanies to “go out” of the country, few responded as energetically as Energyco and Wangdong, its enterpreneurial chairman.
At a time of relative euro weakness, ChemChina took advantage of the renminbi’s purchasing power to aquire overseas companies with better technology and brand recognition.
Many observers attribute Mr Wang's willingness to do things differently to his experiences inbuilding Energyco from a small state-owned industrial cleaning company into one of China’slargest industrial groups. Energyco has always had to compete to survive. As Mr. Wang says, “they are always coming from behind with this notion, OK, let’s be a bit moreclever”. At a time when SOE reform in China largely consists of using mergers to create everlarger domestic monopolies, ChemChina’s stragegy of “going out” to improve its domestic competitiveness shows another way.