Since the founding of the People's Republic of China, China's shipbuilding industry has been among the world's first-class shipbuilding camps by virtue of continuous development and international cooperation. However, the once proud DSIC encountered huge challenges, with a debt of 2 billion yuan and filed for bankruptcy reorganization. What's the story behind this?
From the initial joint venture to the century-old shipbuilding and offshore engineering, its shipbuilding, marine engineering and other fields have created one amazing achievement after another. However, the scramble for a huge order became a turning point in the fortunes of the company. The Norwegian shipbuilding giant has put forward an order for eight drilling rigs, worth 13 billion yuan, which has sparked competition among major shipbuilding companies.
In this fierce competition, Dachuan Haigong was the latecomer, and in order to win this order, he had to make concessions. However, in the process of trading, because of the eagerness to facilitate the transaction, only 10% of the deposit was charged from the other party, instead of the usual 30%, which buried a huge hidden danger.
Even more fatal, the big ship offshore made several fatal mistakes during the construction process. They indulged in the other company's request for customization, and even did not hesitate to meet the small requirements of the Norwegian company, resulting in the construction of drilling rigs that were almost exclusively suitable for Norway itself, and could not be adapted to the needs of other countries.
Subsequently, Norwegian companies began to cancel orders frequently, which caused a series of blows to large ship offshore. At the time of being in debt, DSIC had to give up some orders, and the debt was as high as 192.1 billion yuan, and finally had to file for bankruptcy reorganization.
However, this bankruptcy crisis is not the end of the story. The repeated cancellations of Norwegian companies became a stumbling block on the road to restructuring. Despite the hardships, DSIC was eventually restructured and reborn through the China Export & Credit Insurance Corporation's compensation.
This tortuous experience is a wake-up call for all Chinese companies: whenever they work with overseas companies, they must be wary of the pitfalls of the other party. Principles should not be sacrificed because of the reputation of the other party or the number of orders. Before signing a contract, it is necessary to foresee the possibility of unreasonable demands from the other party and avoid them in time.
Today, DSIC is still strong, continues to manufacture various equipment and machines after reconstruction, and has already received several important orders. Such a company will not fall into a trap, but will move forward more resolutely because of difficulties.
The lessons learned in this difficult journey are not only the unique experience of large ship and offshore engineering, but also a valuable experience summary of Chinese enterprises in international cooperation, hoping to provide reference and warning for future cooperation.
In its tortuous and shocking experience, DSIC has demonstrated the enormous challenges faced by enterprises in the face of international cooperation. This article profoundly outlines the pitfalls and risks that may be faced in overseas cooperation, and provides us with a rare opportunity to observe and think about business cases.
First, it highlights the complexity and risks that Chinese companies face in the international business environment. Even businesses with a wealth of technology and experience can get into trouble due to some uncontrollable factors. In order to win this huge business in the process of competing for orders, DSIC had to give up its own principles and cater to the needs of customers in the form of concessions and concessions. However, these compromises eventually became one of the key factors that led to its indebtedness and bankruptcy.
Secondly, the article presents a real-life scenario full of lessons, which is a valuable accumulation of experience for Chinese companies. In international cooperation, especially when dealing with foreign companies, it is necessary to maintain a high degree of vigilance, not only to grasp business opportunities, but also to pay attention to the risks and pitfalls that may be hidden by the other party. For example, before signing a contract, the unreasonable demands of the other party should be carefully considered and reasonably avoided in a timely manner to avoid ending up in a passive situation.
In addition, the article highlights the strengths and weaknesses of Chinese companies in international competition. Although Chinese enterprises have made great progress in terms of technology and production capacity, they still need to improve and improve in handling business negotiations and risk management in international cooperation. This reminds us that Chinese companies need to continuously improve their technical capabilities, but also strengthen their capabilities in international business communication and risk management.
In summary, the experience of DSIC provides us with a profound business case that underscores the importance of prudence, principle and risk avoidance in international cooperation. Stories like this remind us that no matter what stage of development a business is, it needs to be cautious about international cooperation, not only focusing on immediate benefits, but also focusing on long-term development to avoid potential risks that may arise in the future.
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