Mining equipment manufacturer glad that it engineered Chinese link

The Leeds-based manufacturer, which traditionally supplied heavy-duty electric motors to drive coal-mining machinery in the UK, looked at other countries where mining was still flourishing and signed its first Chinese contract in 1992.

ATB Morley was one of the first overseas companies to start providing equipment for the Chinese mining market.

It works with an agent based in Bejing but, although it supplies direct to Chinese companies, most of its products goes through other manufacturers in the UK and Europe before ending up in China.

Chinese contracts make up about 50 per cent of export sales and it employs one member of staff – a Chinese national – in the country.

In the last two years ATB Morley, which employs over 200 staff and expects to post a £27m turnover this year, has recruited 30 new employees spread across the business, including 10 this year.

The company’s main factory is in Leeds but it also has bases in Bradford and Stockport.

Commercial director Steve Kolowiecki said: “The main benefit of working in China is that the market is still very buoyant and growing at a phenomenal rate. The other issue is that we have built a reputation based on quality and reliability.”

Mr Kolowiecki said the company’s Chinese agent was a key part of the chain. “Without an agent who is well placed it is impossible,” he said. “They represent us, they know the culture and how to negotiate over there.

“If you are going to try to do business in China then you need well-placed people out there.”

He added: “One thing you have got to watch is the culture difference when you sign a contract.

“In the rest of the world, once you sign the contract you know exactly what you are making but in China that is the start of the process. They will continue to make changes and they don’t expect the price to change. You have to try to button it down to the nth degree.”

Staff from ATB Morley meet their Chinese clients at an engineering level. “We make our products to order so we go out there and develop the product together,” said Mr Kolowiecki.

“However, discussions can be quite disjointed because there are so many people involved over there.”

Mr Kolowiecki said his advice for other businesses was to find a niche market. “As a business, you need to look for a niche market where quality and reliability are the main driver, not price,” he said. “If you start trying to compete on price you are wasting your time.”