Global Connections by wuyunyi

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									        Global Connections
     FOR SCOTTISH COMPANIES DOING BUSINESS INTERNATIONALLY | SUMMER 2003




                                                        EXTENDING
                                                        THE REACH
                                                        OFFICE SUPPORT
                                                        OVERSEAS BECOMES
                                                        TRULY GLOBAL




                                                        MONEY FOR
                                                        OLD MOBILES
                                                        EUROSOURCE EXPANDS
                                                        ITS RECYCLING
                                                        OPERATIONS




Pumps Perestroika
WEIR FLOWS INTO RUSSIA
  NEWS & DEVELOPMENTS


                                          Rhetorical talks the talk
                                          A SCOTTISH company has helped create a              Users of the website scan pictures of
                                          new technology being used by Budweiser,          themselves into their PC which the
                                          the American drinks giant, on its website.       software renders into a 3D talking
                                              Rhetorical Systems in Edinburgh, a           character. Text is then added, converted
                                          world leader in speech software, has             into synthesised speech by Rhetorical’s
                                          joined forces with a US graphics company,        technology, and the completed Veeper can
                                          Pulse, to create ‘Veepers’ – animated            be emailed to a friend.
                                          talking characters.                                 Marc Moens, CEO of Rhetorical,
                                                                                                believes the Budweiser project is an
The world’s                                                                                     excellent example of collaboration

the limit                                                                                       between his company and San
                                                                                                Francisco-based Pulse.
          For a small country,                                                                      “Their technology works brilliantly
          Scotland’s business                                                                   with ours,” he says. “The eyes blink at
          activities overseas often                                                             appropriate moments
have a disproportionately big impact                                                            and the mouth moves.
on the markets they serve. This is                                                              It’s extremely
testament to the excellent reputation                                                           impressive. We also
and hard-working nature of Scottish                                                             found a lot of Americans
firms, many of which have a wealth of                                                           like Scottish accents, so
experience on the international stage.                                                          we included them in the
   Scottish Development                                                                         speech database.”
International already has over 20
representative offices in our major        Rhetorical’s Marc Moens describes the
                                           Veepers technology as “extremely impressive”.
target markets to support companies
wishing to internationalise. And now,
our new Global Service Agreement                                              www.rhetorical.com
with Regus will allow us to offer firms
an even wider reach – covering some
400 locations across the globe.
   Whether you need a virtual or an       Into the Valley
incubation office, your Scottish
Development International account         ELECTRONIC SYSTEMS design company Nallatech has seen
manager can help set you up at            such an increase in sales that it has opened a new office in
highly competitive rates. For the full    California’s Silicon Valley.
story, read our feature on page 4 of         The Cumbernauld-based company has reported sales of
this issue.                               £2.4m in the year to April 2003, up by 50 per cent on figures for
                                          the previous year.
Denis Taylor                                 As a result, Nallatech will take on six staff, and open a design
Director, Trade & International           and sales centre at Los Altos, California. Charlie Cump, a
Business Development                      veteran of the industry, will run the new office as Vice-President
Scottish Development International        of Business Development for North America.
                                             CEO Alan Cantle said: "We recognise the large market
                                          opportunity for FGPA-centric high-performance computers in
                                          North America along with the need for strong local technical
Global Connections is produced for        support."
Scottish Development International
                                             In May, Nallatech joined other industry leaders in sponsoring
by:
Insider Custom Publishing,                Xilinx’s Programmable World 2003, a collaborative industry
Edinburgh, Scotland.                      event on the latest technologies and design. It was simulcast
Tel: 0131 535 5555
                                          throughout the States, attracting some 10,000 delegates.

                                               www.nallatech.com




                                                     Global Connections | 2
                                                                                   NEWS & DEVELOPMENTS

      BUSINESS ESSENTIALS
                                                                                              HERIOT-WATT TO THE RESCUE
Upwardly mobile                                                                                  An arrangement potentially worth
                                                                                              £500,000 has been struck between Hong
A FALKIRK-BASED company is selling             Eurosource encourages people to recycle        Kong authorities and Heriot-Watt
used mobile phones overseas so                 and give a donation in the process.            University to provide free access to online
successfully, it has plans for extending its      Strategic Development Manager,              educational resources for the SARS-hit
representation to Spain and the USA, after     Gareth Fernandes, confirmed that               region. The Interactive University (IU), a
launching in France in September 2002.         Eurosouce’s French operation signals the       spin-out from Heriot-Watt University,
    Eurosource Europe was founded in a         beginning of an expansion into Spain and       publishes interactive online learning
back bedroom in 1999 by Chief Executive        the USA sometime in 2004 – good news           materials for school students in key
Jamie Rae and Finance Director David           for recipient countries like parts of China,   subjects, and has provided an innovative
McCabe. It now employs 65 people in its        Russia and Africa where there is huge          solution for thousands of Hong Kong
Falkirk HQ. By placing recycling bins for      demand for affordable phones.                  students who are currently prevented
mobile phones and printer cartridges in                                                       from attending their schools and colleges
offices, each bearing the name of a                www.esel.co.uk                             because of the outbreak.
charity, school or community group,                                                              IU provides materials to 90,000
                                                                                              students in 15 countries - the potential
                                                                                              Hong Kong uptake is 30,000.
                                                               ANYONE WANT A MOBILE?:
                                                                     Eurosource signals
                                                                   overseas growth in its     FUNDING INITATIVE FOR SMALL TO
                                                                     recyling operations      MEDIUM SIZED ENTERPRISES (SMEs)
                                                                                              Small businesses with big technology
                                                                                              ideas can now source help under an EU
                                                                                              fund. Scottish Enterprise is encouraging
                                                                                              applications under Framework Six (FP6)
                                                                                              and has launched the Scottish Proposal
                                                                                              Assistance Fund.
                                                                                                 During the next three years, over 100
                                                                                              grants will be awarded for researching
                                                                                              and developing leading-edge technology
                                                                                              within European partnerships.
                                                                                                 Applications must come from a
                                                                                              Scottish organisation and must involve at
                                                                                              least one Scottish SME. Contact: Lucy
                                                                                              Taylor or Peter Walker at IRC Scotland
                                                                                              Tel: 0141 946 0500. Email:
                                                                                              irc@targetinginnovation.com
     FOR THE DIARY...
ENERGY & ENGINEERING                           NEW TECHNOLOGIES                               GENERAL
further information on tel:                    further information on tel:                    Further information on tel:
0141 228 2732                                  0141 228 2374                                  0141 228 2367
email: des.roache@scotent.co.uk                Email: martin.harvey@scotent.co.uk             Email: enquiry@scotent.co.uk
2-5 Sept 03 – Offshore Europe. Aberdeen        21-25 Sept 03 ECOC Exhibition.                 August 03 – Edinburgh International
                                               Rimini, Italy                                  Games Festival. EICC, Edinburgh
LIFE SCIENCES                                  12-18 Oct 03 ITU World Telecom.                10 Sept 03 – American Stock Exchange
further information on tel:                    Geneva, Switzerland                            Presentation. Scottish Enterprise,
0141 228 2813                                                                                 Glasgow
Email: wendy.mccutcheon@scotent.co.uk          SERVICE & CONSUMER                             28 Nov 03 – Scottish Council for
7-9 Oct 03 – Biotechnica.                      INDUSTRIES                                     Development & Industry Gala Awards
Hannover, Germany                              further information on tel:                    Dinner. EICC, Edinburgh
19-22 Nov 03 – Medica.                         0141 228 2491
Dusseldorf, Germany                            Email: jennifer.gunning@scotent.co.uk
                                               11-15 Oct 03 – Anuga Food Fair, Germany


        you can request a full list of forthcoming events by using the attached reply card

                                                      www.scottish-enterprise.com | 3
GOING GLOBAL                      AT A GLANCE › Firms can now widen their global reach
                                                                                              Following a Learning Journey to
                                                                                              Houston, Ty-Com’s VP Business



A Truly                                                                                       Development, Colin Black, has
                                                                                              established a successful virtual
                                                                                              office in the city




Global Affair
Opening an overseas office is a daunting prospect for
most businesses. Now Scottish Development International’s
new service agreement can support your move to around
400 locations.

IN RECENT YEARS, there has been              areas, cyber cafés, lounges, and even
growing recognition of the diverse needs     shower facilities.
and ambitions of Scottish companies. In           So a virtual office facility with a local
that time, Scottish Development              telephone number, answering service,
International has established offices in     local address, mail forwarding, and a
more than 20 locations around the world      voucher for £500 of support, could cost as
which can offer help and support for firms   little as US$168.75 a month ($206.25 in
wishing to internationalise.                 New York and San Francisco).
    Now Scottish Development                      For that, a business can benefit from
International has entered into a Joint       the excellent professional support of
Agreement with Regus, the largest            Regus’ telephone services and transit
managed office space provider in the         facilities around the world. Scottish
world, which will provide access to some     Development International field staff and
400 locations and give client businesses a   account managers will also be on hand
discount of at least 20 per cent on both     to help further the international
virtual and incubation offices.              ambitions of Scotland’s growing
    Says Ellen Stallins, Director of Cross   businesses.
Geography Initiatives at Scottish                 An actual office ranges from a
Development International: “We have          single workstation to a global HQ-style
focused our own incubator locations in
key sites identified by our client base –
Boston, Houston and San José in the
United States; Shanghai, China; and
                                               The Scottish Development
Singapore. However, with the Regus             International/Regus Global
agreement in place, we can now offer the       Service Agreement includes:
same professional support across 400           Virtual office
sites worldwide – not just Scottish            • Over 400 centres worldwide
Development International sites – to           • US pricing $168.75 per month,
Scottish companies with diverse                  $206.25 New York & San
international aspirations, at an extremely       Francisco
competitive rate.”                             • Central London pricing £150
    And the agreement goes beyond                per month
physical space. It includes discounts for      • Singapore pricing s$262.50
virtual office operations and access to a        per month.
range of other Regus services such as          Actual office
meeting and training rooms, reception          • Global network of outsourced
                                                 office space
                                               • Priced per workstation
For further details on where and
                                               • Local charges for taxes and
how you can set up an office                     alternative Regus services
under the new agreement, con-                  • Business Service Package, Telecoms
tact the International Business                  Package and Data package available.
Helpdesk on 0141 228 2367.



                                                        Global Connections | 4
                                                            GOING GLOBAL
facility and is subject to a minimum 12-
month contract. Costs are based on the
number of workstations and length of               Asian incubator
contract, with discounts on bigger deals.          gateway
   Again, Scottish Development
      International staff will continue to          A SEPARATE AGREEMENT has been
         work with companies venturing              made between Scottish Development
         into new world markets, helping to         International and Singapore’s Economic
         identify the best prospects                Development Board (EDB) to open a
         geographically and providing               gateway to Asian markets.
         overall support and guidance.                 The Singapore High Commissioner,
             Once a company has                     Michael Teo, is keen to support
         established a location of interest to      innovative knowledge-based Scottish
         them, they should contact their            enterprises seeking to develop business
         Local Enterprise account manager           opportunities in this marketplace.
        to proceed. If they do not have one,           Scottish Development International
       they should contact the International        will have a field office from which it will
      Business Helpdesk at Scottish                 work closely with the EDB and relevant
     Development International. Details at          sister organisations to allow access to
     the foot of page four.                         support services for Scottish companies
          Regus connection services can be          using the incubator facility.
      booked in advance by the hour,
      half-day or full day, offering
      discounts of 7–10
                                               SINGAPORE: Gateway to Asia’s markets
       per cent.




       Texan delight
       for Ty-com
    TY-COM BUSINESS SYSTEMS
     Ltd, based in Aberdeen, and now
     Houston, has over 25 years’
     experience of the IT services
    sector, as well as an enviable list
    of customers and recognition
    awards.                                       has come from the installation of Ty-com
       VP Business Development, Colin             Operations and financial software
    Black, joined a Scottish Development          probity® and Competence Assurance,
   International Learning Journey to              Certification and Training Management
   Houston last November when the                 Software, capability core® in many
   company decided to develop its global          worldwide locations. Colin says: “Our
   presence.“Historically, we have found          broad experience has enabled us to
   that most decisions are made in                develop innovative solutions for a diverse
        Houston regarding UK installations,       range of clients across a wide variety
        so this gave us the opportunity to        of sectors.
        meet key decision makers.”                    “Houston is a good primary base for
            Such was the success of the           us, and we are now well on track for
        trip that Ty-com has decided to           developing strong commercial links and
       establish a virtual office run from        doing business globally.”
       the Scottish Development
International field office.                            www.tycom.co.uk
    International expansion of its business




      www.scottish-enterprise.com | 5
SUCCESSES                  AT A GLANCE › Scottish successes across the globe




                                                                                                                     The University of
                                                                                                                     Dundee’s Professor
                                                                                                                     Sir Philip Cohen,
                                                                                                                     pictured here, is a
                                                                                                                     leading authority
                                                                                                                     on drugs
                                                                                                                     development


£15m funding for University of Dundee
SIX OF THE WORLD’S best-known               the amount awarded for the previous five      Phosphorylation Unit at Dundee, said:
companies have renewed their support for    years.                                        “The availability of so much… ‘know how’
collaborative drugs development research       The pharmaceutical companies behind        in a single centre is a major reason why
with the University of Dundee.              the deal include AstraZeneca, Boehringer      we have won this award. It shows how
   The University’s work on diseases such   Ingelheim International GmbH,                 useful the technology we have developed
as cancer, diabetes and rheumatoid          GlaxoSmithKline, Merck KgaA (Germany),        has become to the pharmaceutical
arthritis has a solid reputation for        Merck Co, Inc (Whitehouse Station, NJ,        industry.”
attracting overseas commercial interest,    USA), and Pfizer.
and this renewed funding – more than           Professor Sir Philip Cohen, Director of        www.dundee.ac.uk
£15m over five years – is almost double     the Medical Research Council Protein



Aberdeen offshore accommodation specialist wins $450,000 contract
                              BOUND FOR     AN ABERDEEN offshore accommodation            strengthened our presence in the South
                                 BRAZIL:    specialist has landed a major contract to     American market and we have the Trade
                        An accommodation
                                 module     supply high-specification accommodation       Partners UK Oil & Gas team to thank for
                                            modules for installation onboard an FPSO      their assistance and continued support.”
                                            floating unit.                                   The two companies joined up after the
                                               Shell in Singapore has contracted          Aberdeen-based business commissioned
                                            Duffy & McGovern to provide the               research through Scottish Development
                                            specialist units for use on board the FPSO    International and Trade Partners UK’s
                                            Fluminese, currently en-route to Brazil.      services via the Commercial Team at the
                                            Duffy & McGovern, in turn, won the deal       British Consulate in Rio de Janeiro.
                                            as a result of a partnership with Brazil-        Petrocean has provided the vital local
                                            based distributor, Petrocean.                 knowledge for Duffy & McGovern to break
                                               Commercial Director of Duffy &             into the Brazilian market and win repeat
                                            McGovern, Craig Russell, welcomed the         orders.
                                            new contract, saying: “This particular deal
                                            demonstrates our global capabilities. Our         www.dm-accommodation.com
                                            relationship with Petrocean has
                                                                                                                                      photo:




                                                      Global Connections | 6
                                                                                                      SUCCESSES

       ‘FAIR COMMENT’
                                                                                       PharmaLinks in
   Tom Shepherd, Chief Executive of                                                    Korea deal
   CXR Bioscience in Dundee, on                                                        A UNIQUE partnership between the
                                                                                       Universities of Glasgow and
   Scotland’s biotech sector.                                                          Strathclyde has secured £1m from a
                                                                                       Korean company to help develop anti-
   TOM SHEPHERD returned to his              perhaps involving                                         obesity drugs.
   native Scotland after 20 years in         more mergers,                                                 The deal between
   life sciences in Silicon Valley and       so that real                                              Pharmalinks and
   in France.                                synergies are                                             Hyundai
       “When I graduated, people were        created.                                                  Pharmaceutical will
   leaving to find work, but now the            “People know                                           involve study into a
   outlook is much more international.       about the San                                             plant extract which has
   As a result, those same people are        Francisco                                                 elements potentially
   coming back. They are high quality        biotechnology                                             useful to this sort of
   individuals, and they are attracting      grouping, or the                                          drugs development.
   others back too, especially in the        Boston                                                        Professor Alan
   technology-based industries.              biotechnology                                             Harvey (pictured left),
       “But Scotland’s business model        grouping - not                                            Director of
   should now aim to be a small              because they know the cities, but         PharmaLinks at the University of
   number of strong companies,               because there are major companies         Strathclyde, said: “We are very
                                             there that have led the way.              encouraged by our findings and
                                             “Similarly, I think people have heard     welcome the opportunity to continue
                                             about Dundee because of                   our research with a view to developing
                                             companies like Cyclacel, rather           advanced, anti-obesity drugs. With
                                             than Dundee’s biotech sector as           Hyundai’s support we will use
                                             a whole.                                  genomic techniques to understand
                                                “This is the route we need to          our compound’s unique mechanism.”
                                             go down.The Scottish biotech                  Research coming out of the two
                                             industry will become globally             participating universities has already
                                             competitive because there are a few       led to nine products on the worldwide
                                             strong companies, not because             market, generating more than £15bn
                                             there are very many small ones.”          in sales for the licensees.
    TOM SHEPHERD:
                                                 www.cxrbiosciences.com                    www.pharmalinks.org
    Chief Executive,
    CXR Biosciences



Japan calling
ROTHESAY-BASED Telecom Service                    Managing Director Jim Park
Centres (TSC), the call centre operation       said: “This is the start of some
set up in 1994 by entrepreneur Lennie          very important moves for TSC. We
Moffat, is establishing a Japanese base in     said at the time of the take-over
the form of a 100-seat Tokyo contact           that it was a major Scottish
centre.                                        venture that we wanted to turn
    TSC was recently sold for £28m             into an international
following a Lloyds Bank management             success story. It is
buy-in, and the new owners have acted          happening already.”
quickly to win business overseas. The
Japan centre will handle a £10m contract            www.tsc.co.uk
with American insurer Transamerica
Corporation, and is the beginning of a
longer-term working relationship,
according to the new board.




                                                     www.scottish-enterprise.com | 7
GETTING INTO... RUSSIA                             AT A GLANCE › Making moves on a vast market


The gradual evolution of
Russia towards a market
economy is bringing new
                                               The Russian Bear
opportunities for
entrepreneurs and a strong
demand for western goods.
                                               Gains Strength
        or the best part of 10 years, Russia

F       has fought, and succeeded in, cre-
        ating a system which is supportive
of the private sector and which encour-
ages the creation of joint ventures and
the promotion of trade.
    President Putin has personally
encouraged an ambitious programme of
domestic reforms based around the 10
year economic plan of Economy Minister
German Gref. During his visit to
Edinburgh in June, Putin paid specific
tribute to the influence Scotland has his-
torically had on Russian life, and encour-
aged modern Scottish businesses to take
advantage of the healthy economic
growth there.
    In February, BP made a $6.75bn
investment in a joint venture with Russian
oil company TNK – the largest ever
investment in Russia. It is anticipated
that decision will lead to an increase in
                                               Pump up the business
foreign investment.                            FOR A WELL-ESTABLISHED Scottish             construct old pump stations with
    Some analysts are forecasting a real       manufacturer with a proven international    modern, high-efficiency equipment."
boom in the Russian consumer market            track record, Weir Pumps has been in the        And the opportunities in water are
which will be followed by what Ernst &         Russian market for a surprisingly short     potentially vast in a country home to 42
Young predicts will be “an explosive           time. However, Regional Sales Manager       cities with populations greater than
growth in the mortgage market.” Retail         for Eastern Europe, Geoff Inshaw, says      Glasgow – many, as Geoff explains, with
chains are expanding and competition in        that, since taking the plunge in            very antiquated infrastructure. This July
the capital is intense.                        December 2001, things have moved very       sees the arrival in Scotland of a senior
    In total, the Russian consumer market      rapidly indeed.                             delegation representing Russian
is worth $240bn, 80-100 per cent larger            Pump manufacturing can be adapted       municipal water companies,
than official statistics show, and is grow-    to various sectors, and this has not been   supported by Weir, Glasgow City
ing by 10-15 per cent a year according to      lost on Weir and Russia. Among others,      Council and Trade Partners UK.
the Interactive Research Group.                the company has supplied safety pumps       Geoff sees this as a prime
    For Scotland, Russia is beginning to       for Kola Nuclear Power Station, tanker      example of Russian interest in
move up the list of priority markets. The      oil loading pumps for a new oil terminal    British expertise. "Don’t ignore
Scottish Council for Development and           near St Petersburg and pumps for the        the Russian market. What may
Industry (SCDI) places it 35th in the top      Bravo beer brewery in the city itself.      appear to be an informal enquiry
40, but even at that, we exported £75m of          Initial support for Weir came from      scribbled on the back of a
manufactured goods and £3,244m in              Scottish Development International’s        cigarette packet could turn out to
services during 2001. It is a marketplace      Russian office to help get the company      be genuine. If you’re presented
that is opening up, offering great poten-      established there. And through a            with an opportunity, follow up on it,
tial for exporters.                            Glasgow City Council twinning               because Russians are definitely
                                               arrangment with Rostov-on-Don, Geoff        prepared to work with Scottish
For further information on                     explains how he was introduced to the       companies."
opportunities in Russia, contact               town’s municipal water company: “That
                                                                                                www.weir.co.uk
                                               meeting led to a pilot project to re-
the International Business
Helpdesk on 0141 228 2367


                                                       Global Connections | 8
                                                                                              GETTING INTO... RUSSIA
         A taste for the ginger stuff
        IT WAS BACK in 1994 that soft drinks         began production in 1998."                  continues this year along with in-store
        company AG Barr began direct exports of          Barr has since secured a new            promotions, and there will soon be a
        its trade-mark brand Irn-Bru to Russia. In   franchise deal with the Pepsi Bottling      Russian Irn-Bru website.
        the years following the break-up of the      Group (PBG). It began production in            "This arrangement has opened up a
        Soviet Union, Barr spotted the rising        February 2002, using all five of PBG’s      much larger distribution network for us,
        demand for consumer goods, including         factories to                                                 and it also gives our
        soft drinks. Says a company sales            make Irn-Bru in                                              product a presence in the
        spokesman: "We started to get enquiries      plastic bottles                                              many PBG coolers to be
        from distributors who were interested and    and cans, plus                                               found in Russian
        we held an exhibition in February 1994.      one of their co-                                             supermarkets. PBG are
        That immediately converted into about        packers to                                                   very, very professional."
        $500,000 in direct sales."                   produce Irn-Bru                                                  The Irn Bru sales
            But direct exports meant long lead       in 250ml glass                                               team now sees fantastic
        times and occasional customs delays, and     for bars and                                                 growth opportunities in
        it made sense for Barr to look to local      cafés.                                                       this developing market.
        manufacturing. "Unfortunately at that            The company                                              "The place has a buzz.
        time there wasn’t the infrastructure in      has been very                                                There are lots of street
        place to make soft drinks to our high        active in above-                                             cafés, clubs, restaurants
        standards." But with the help of Scottish    the-line                                                     and far more designer
        Development International, Barr made         advertising                                                  shops than you would
        contact with a local Pepsi distributor       activity and ran a                                           see in many large cities.
        seeking to open its own soft drinks plant.   six-week                                                     There are 144.5 million
        "In 1998, once we had looked at sites,       campaign in                                                  people, making it the
        finance and all the other hurdles, we were   June last year.                                              seventh largest country
        able to produce a business plan and we       TV advertising                                               in the world, so there is
                                                                                                                  great potential for Scots
WEIR PUMPS is                                                                                                     to export in many areas."
winning lucrative                                                                                                     AG Barr reached its
business re-building
antiquated Russian
                                                                                                                  sales target in 2002 and
water supply                                                                                                      expects to do so this year
systems                                                                                                           and beyond.

                                                                                                      www.agbarr.co.uk




                                                                                                      Trade Statistics

                                                                                                  2002 UK EXPORTS
                                                                                                  £989.6 million
                                                                                                  office/data machinery, telecom and
                                                                                                  audio equipment,
                                                                                                  industrial/electrical/specialised
                                                                                                  machinery

                                                                                                  2002 UK IMPORTS
                                                                                                  £1995.5 million
                                                                                                  Non metallic mineral goods, non ferrous
                                                                                                  metals, petroleum, inorganic chemicals

                                                                                                  2002: Russia exports: $105.8 billion
                                                                                                  2002: Russia imports: $46 billion




                                                           www.scottish-enterprise.com | 9
LIVING THE LIFE                         AT A GLANCE › The German experience    › Scotland’s Queen’s Awards winners
                                                                                                             Hamburg’s BLOHM +
                                                                                                             VOSS shipyard is a major
                                                                                                             client for Colin and his
                                                                                                             business




Breaking
the Ice
Colin Watson took the
plunge and went to Germany
25 years ago with nothing but
his expertise. His company,
ICE GmbH, is now a key player
in Hamburg’s shipyard                                                                            ICE GmbH –
industry.                                                                                        Germany and
         o-one would normally encourage                                                          beyond
N        the average businessperson to
         approach their international activi-
ty without a planned support structure.
                                                                                                 COLIN AND JOHN have
                                                                                                 their premises with the
                                                                                                 freeport at Hamburg, allow-
But ironically enough for Colin Watson,                                                          ing them easy access to
approximately 25 years’ hard work having                                                         their biggest clients such as
to deconstruct the complexities of                                                               Blohm + Voss, famous for
Hamburg’s shipbuilding and shipyard sec-                                                         building the Bismarck. They
tor has had its reward in an exciting                                                            can pick up heavy work-
career, along with an unrivalled insight                                                         loads from such companies
into the German way of doing things.                                                             and, with 15-20 trusted
    With his long-time business partner,                                                         sub-contractors, pass it
John Wright, Colin has slowly but surely                                                         back as a completed pack-
carved out a successful consultancy                                                              age. But the world no
capable of providing shipyard design,                                                            longer stops at Germany.
planning and expertise to major compa-                                                           Ironically, work has come
nies such as Blohm + Voss AG and HDW                                                             their way from ports back in
Kiel, specifically when their workload                                                           the UK, and new opportuni-
becomes too much for the available man-                                                          ties are coming to fruition in
power. But as the old cliché goes, it cer-                                                       Romania. "Rather than hav-
tainly was not plain sailing.                                                                    ing all our eggs in one
    Colin’s first opportunity for employ-                                                        country," says Colin, "we’re
ment in Germany came on the back of                                                              now in a position to get
difficult times for shipyards in the UK at                                                       work elsewhere."
the end of the 70s – but at this stage it                                                           ICE GmbH is now in the
wasn’t a permanent move. It was, howev-                                                          process of consolidating its
er, a chance for him to decide on reloca-                                                        international activity, and
tion. “So many other young people at the                                                         despite the difficult times
time were doing the same,” he says. “We                                                          facing Germany, Colin’s vast
were encouraged by others who had cho-                                                           experience tells him it’s all
sen to stay in Britain to set up their home                                                      worth it.




                                                     Global Connections | 10
                                                                                                          LIVING THE LIFE
  and family, that we should make the move         label before we became limited in 1996.        the doors will only open when you inte-
  now or we’d lose out later.”                     That said, setting up is straightforward if    grate as much as possible with the
      Armed, as he puts it, with only “some        you know what you’re doing. We made            Germans.
  money in my inside pocket, along with a          certain mistakes but learned by them!”            Tenacity and commitment are valuable
  couple of pencils, pens and calculator in a         And what of using the language?             words in Colin’s vocabulary – he is happy
  case”, Colin and John flew themselves            “Everybody wants to practise English on        to have done what he has done, and has
  over to discover just how difficult it was       you,” says Colin. “They make it too easy       won the hard-earned respect of his
  going to be to get themselves established.       and that’s a mistake.” So learning             German clients as a result. His advice to
  The legal issues and initial expenses con-       German is a must if you intend to make a       others setting up in Germany is to “stick it
  nected with setting up in Germany were           go of any operation. It is easy to find oth-   out for a minimum of three months”
  not enough to scare them off the very real       ers ex-pats whom you can stick with, but       before deciding on a permanent move.
  opportunity they knew they could grasp by
  working for the major shipbuilders.
      “You need at least €25,000 to set up a          “ We traded for years under a ‘self-employed’
  limited company, and you need to care-              label before we became limited in 1996. But
  fully learn the laws of the land, because
  the business culture is very lawyer and
                                                      setting up in Germany is straightforward if you
  accountant-led,” Colin explains. “We                know what you’re doing.”
  traded for years under a ‘self-employed’            Colin Watson, ICE GmbH




      A right royal achievement
      Six Scottish companies have been honoured in the
      Queen’s Awards for Enterprise – testament to the country’s
      ability to excel in international trade.

      THE QUEEN’S AWARDS, presented to               Excell Biotech, had the honour of being
      UK firms showing excellence in                 presented with its Award by the Duke of
      International trade, innovation or             York in July, when he was invited to open
      sustainable development, are a real            its new manufacturing facility. The
      benefit to companies, adding as they do        company, a subsidiary of Canadian
      significant prestige to their activities.      parent Qbiogene, was formed in 1997 to           Peterhead-based Fresh
                                                                                                      Catch Ltd exports pelagic
         This year’s Scottish contingent             bridge a gap in the biotechnology                fish to 50 countries
      includes companies in some of the              market between research, development
      country’s strongest sectors, including oil     and manufacturing by developing
      & gas, finance, biotechnology and fresh        advanced biological products for             exports to 50 countries.
      produce.                                       customers in the diagnostic,                     This year’s four other Scottish
              One winner, Livingston-based           pharmaceutical and animal health             winners are
                                                     industries worldwide. In just three          Trinity International Services,
                                                     years, it has seen an eight-fold increase    Aberdeen – catering management for
                                                     in its exports.                              the oil & gas industries worldwide
                                                         Also worthy of note is Fresh Catch       Univation, Aberdeen – commercial arm
                                                     Ltd of Peterhead, which has had              of Robert Gordon University, with
                                                     success in a notoriously difficult sector.   markets in 11 countries
                                                     A pelagic exporter, Fresh Catch has          The Royal Bank of Scotland, Edinburgh
                                                     nearly doubled its overseas business in      – Now one of the 20 largest banks in the
                                                     three years. Its new plant will have a       USA, through its Citizens Bank Group
                                                     freezing capacity of 950 metric tonnes       operation.
                                                     of fish daily and total cold storage of      IPA Energy Consulting, Edinburgh –
                                                     18,000 metric tonnes, making it one of       specialist in the creation and support of
Excell Biotech has seen an eight-fold
                                                     the largest freezing and storage             liberalised electricity and gas markets.
increase in exports over three years                 facilities in Europe for pelagic fish. It    Now operating in 35 countries.




                                                         www.scottish-enterprise.com | 11
                                                     DR TRADE                    AT A GLANCE        › Expert advice for Scottish firms

                                                     Setting out your strategy for tackling international
                                                     markets needn’t be a solo effort. Here, Dr Trade answers
                                                     some common questions about market intelligence and
                                                     support available from Scottish Development
                                                     International

              s I want to send a colleague on a
              ➜                                                • identification and assessment of                  use as a base for being introduced directly
              trade mission. How can we make                      potential agents/distributors;                   by Scottish Development International to
              the greatest impact on our                       • customised local contact list;                    key industry players and markets. Before
              contacts in the market?                          • market assessments for your product               embarking on overseas exhibitions or
              ONLY you will know what your best                   or service;                                      missions, check well in advance with
              business pitch is capable of achieving, but      • advice on your market approach;                   Scottish Development International to see
              Scottish Development International can           • information on local investment                   how we can best help you achieve your
              make the trip as hassle-free as possible.           opportunities;                                   objectives.
              We can provide experts to give pre-                  Simply contact Scottish Development
              mission and in-country briefings. We are         International to arrange a report for your          s We are attending a trade
                                                                                                                   ➜
              often in a position to make personal             company.                                            mission in Japan, but we do not
              introductions to overseas contacts on your                                                           speak the language. How can we
              behalf, and travelling in a group allows         s We are considering mounting a
                                                               ➜                                                   warm potential clients up to our
              you the chance to network with other             presence at an overseas                             impending arrival?
              missioners in your sector.                       exhibition, but we are not sure of                  YOUR first priority should be to master
                                                               the options available to us.                        even a rudimentary knowledge of
              s My company has singled out a
              ➜                                                IF the exhibition is supported by Scottish          Japanese phrases before you go out – if
              potential target market overseas,                Development International, then we can              not for doing business, at least for the
              but how can we confirm that our                  help you choose the one that is right for           sake of courtesy. That said, Scottish
              research is accurate before taking               your internationalisation strategy. Once            Development International can help you
              the plunge?                                      you have made your selection we can offer           with advance publicity and promotional
              IF you feel that you need an objective           a package of support depending on where             literature for most overseas markets. This
              assessment of the potential for your firm,       you are going and what you want to do –             can include trade fair/mission publicity,
              you can buy a low-cost tailored market           which could include a grant to help you             preview/PR material for the media, a
              report through Scottish Development              cover your stand space and construction             subsidised promotional leaflet service, or
              International. Reports provide you with:         costs. Some exhibitions may have a                  even catalogues.
              • basic market information;                      Scottish Pavilion, which companies can



             s For further information on the packages of support available to companies considering attending exhibitions, trade missions
             ➜
             or learning journeys, visit the Services to Business International section of our website, www.scottish-enterprise.com



             Scottish Development International helps       RUSSIA SPECIAL                                                   Also for your diary:
             Scottish companies exploit their activites
About us




                                                            Scottish Development International’s Energy &
             and business potential overseas. To get in     Engineering Team has commissioned a wide-ranging
             touch with our staff, contact our              report on the Russian Oil & Gas sector, covering all             Oct 2003 - British
                                                            aspects of the industry.                                         Ambassador’s Mission to
             International Business Helpdesk
                                                            It is split into five sectors reflecting Scotland’s              Western Siberia PLUS
             (Details below).                                                                                                Learning Journey to Moscow
                                                            particular strengths:
                                                            • Drilling Technologies
                                                            • Subsea Engineering                                             For a copy of the report, and to
             Scottish Development International
                                                                                                                             register your interest in any of
             150 Broomielaw,                                • Education & Training                                           the events, contact Phil Stirling
Contact us




             Atlantic Quay,                                 • Safety & Environmental Protection                              on tel: 0141 228 2672.
             Glasgow, G2 8LU                                                                                                 Email:
                                                            • Production Management & Processes
                                                                                                                             phil.stirling@scotent.co.uk
             Tel: +44 (0) 141 228 2367
                                                            To publicise the report and opportunities for Scotland’s
             Fax: +44 (0) 141 228 2089                      firms in the sector, a seminar is being held on 1 Sept
             E-mail: enquiry@scotent.co.uk                  2003, Britannia Hotel, Aberdeen. Key speakers from a             Read more about the Russian
                                                            major Russian company will be attending.                         market in this issue, pages 8-9

 8
       Published by Scottish Development International, 150 Broomielaw, Atlantic Quay, Glasgow G2 8LU, Scotland.
       Managing Editor: Scottish Enterprise Marketing Team. SE/2921/JUNE03
                                                                                                                  www.scottish-enterprise.com

								
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