New British company in town

It is good to know that despite the current global financial crisis, some British companies are still considering opening branches in emerging countries such as Chile picking up good business opportunities. Chile is not immune to a downturn of the world’s economy, inflation is rising – like in most parts of the world - and the weak dollar is hurting agriculture and wine exporters. Being the world’s largest producer of copper  - with the largest bonanza period in copper price - any industrial downturn could have an impact an Chile's growth. However, Chile´s sound macro financial policies, with an important surplus in public accounts, and solid financial regulations are helping Chile to soften the impact of the international crisis and the economy is more resilient than in the past.

What makes a company decide to open a branch abroad is a strategic decision that could have many different reasons. In this case, Balfour Beatty Rail Projects decided to establish a company in Chile as a result of winning a new rail contract worth around US$80 million for the extension for Santiago’s Metro and the possibility of working in a pipeline of projects. I have been working closely with Metro Santiago to support their projects and getting British companies to participate in them. Some years ago we invited Metro’s senior management to go to the UK as part of a “Meet the Buyers” event - matching relevant buyers and sellers for private, individual ‘face-to-face’ meetings –,  and organised other activities to encourage British participation. As a result, British companies have been successful in different areas e.g. consultancy, modelling pedestrian flows, operations and railtrack installation. This is the second contract that Balfour Beatty has won with Metro Santiago. The previous contract won by Balfour Beatty was to build the 64  km extension line to the southern part of the city, which finished in 2006 and was inaugurated by at the time President.  I have been working with Balfour Beatty since they first became interested in the Chilean market so it is very encouraging that they have decided to open an office here and also to see how a company develops over a period of time.

In my view, it proved strategic for Balfour Beatty to develop a good working relation with Metro, based on trust and long-term commitment. It was also useful to carefully select local partners and to carry out an Overseas Market Introduction Service - UK Trade and Investment chargeable service that provides accurate and up-to-date market information and tailored assistance.

I have also just started working with a company in the environmental sector, helping them with their assessment for a possible joint venture with a Chilean company. If the evaluation proves to be positive we will soon have another British company in town.

 

Posted at 14:49 30 January 2008 by Maria Pia Gazzella  |