"Going out" is an important part of my country's opening-up strategy, and an inevitable choice for my country's economic transformation and upgrading, active participation in international competition, and global optimal allocation of resources. In recent years, Shuangma Group has thoroughly implemented the national "going out" development strategy, actively planned and constructed overseas large-scale raw material production bases, and promoted the transformation of the company from importing raw materials to resource development, and initially established the development from palm plantation to fatty acid and its derivatives. The entire international industry chain of R&D, production and sales has realized a major transformation from product production to capacity output, brand output, and standard output, and has become a leading enterprise with certain influence in the industry.

1. The basic situation of the enterprise

Shuangma Group was founded in 1997 and is headquartered in Rugao City, Nantong. After more than 20 years of continuous development, the company has continuously extended from the initial petrochemical production to the upstream and downstream of the industrial chain. Build four major business segments: oil production, fine chemicals, agricultural planting, and equipment manufacturing, and become the world's top industrial group specializing in the research and development and production of fatty acids and their derivatives. Shuangma Group owns more than 10 subsidiaries (branch) companies in China, including Nantong Kaita Chemical, Nantong Xinbang Chemical, Nantong Safe Machinery, etc., and has formed a sales network covering most of the country. In 2006, it began to expand overseas and expand related businesses. Indonesia has established the "Indonesia Kalimantan Agriculture, Industry and Trade Economic Cooperation Zone", which has laid out industries including planting, processing, trade, and logistics, and realized the international operation of the research and development, production and sales of fatty acids and their derivatives. In 2014, "Indonesia East Kalimantan Agriculture, Industry and Trade Economic Cooperation Zone" was recognized by the Jiangsu Provincial Department of Commerce and the Department of Finance as a cluster of overseas industrial cooperation in Jiangsu Province. The Department of Finance has identified it as a cluster of overseas industrial cooperation in Jiangsu Province.

2. "Going Global" to establish an international production and management system

(1) Uncertainty of raw materials is the driving force for enterprises to "go global"

Palm oil is squeezed from palm fruit. The pulp and kernel produce palm oil and palm kernel oil respectively. Palm oil in general terms only includes the former and is mainly used in catering, food processing, and oleochemical industries. Because palm tree planting requires high light and heat, it can only grow in the 5° north-south latitude. In my country, except for a very small part of Hainan, it cannot be planted effectively. This has caused most of my country's petrochemical producers to rely on foreign markets for raw materials. Big. Southeast Asia and Africa, as the main palm oil producing areas, account for about 95% of the world's total palm oil production. Indonesia, Malaysia and Nigeria are the world's top three palm oil producers.

The palm oil required by Shuangma Group's oil production is mainly imported from Southeast Asian countries. As the production capacity of enterprises gradually increases, the stability and safety of the supply of raw materials are becoming more and more important. Uncontrollable factors such as import price fluctuations, tariff policy changes, and sudden severe weather at sea have had a greater impact on the normal production and operation of the company. The company's ability to control the raw material market and product market is very limited, and supply chain management has become a weak link in the growth of the company . These factors not only have an adverse impact on the Shuangma Group, but are also a pain point and difficulty in the sustainable development of China's petrochemical industry. The problem of raw materials "stuck neck" needs to be solved urgently.

With the in-depth implementation of my country's opening-up strategy, my country has gradually entered the development stage of "bringing in" and "going out" simultaneously. Shuangma Group grasps the general trend and objective laws of economic development. In particular, corporate decision-makers are keenly aware that the corporate development model must be closely aligned with the national economic transformation and actively provide service support for the national strategy. "Going out" and using comparative advantages to allocate resources globally is an inevitable choice for a company to grow bigger and stronger, and it is also the only way for a company to move towards an international business model. It can not only fundamentally solve the problem of raw material supply uncertainty, but also in the fierce international market. Learn from experience in the competition, open up the market, and create a brand. Since 2006, as a leading enterprise in the industry, Shuangma Group has taken the lead in launching an international strategy, focusing on the construction of the industrial chain and supply chain, and starting to plan "going out" methods and destination countries, and strive to completely solve the shortage of raw materials and raw materials in the industry and the industry. The price.

(2) Take the lead in exploring the construction of overseas raw material production bases

Indonesia, Malaysia, and the Philippines are the main palm oil producers, and the three countries together account for more than 80% of global palm oil production. After repeated inspections of Indonesia, Malaysia, the Philippines and other countries, comprehensive consideration of political, economic, cultural, climate, tariffs, logistics and other factors, the focus is on comparing Indonesia Palembang, Sulawesi, East Kalimantan and Central Kalimantan. After waiting for the island's soft and hard investment environment, it was decided to locate the raw material base on the island of Kalimantan, Indonesia. In 2006, under the guidance of the national "going out" strategic policy, for the sustainable development of the enterprise and the entire industry, and at the same time, to enhance the competitive advantage of competitors in the world, Shuangma Group registered and established Dukuda in the Free Trade Zone in the northern part of Jakarta, the capital of Indonesia. (Indonesia) Co., Ltd., officially started the construction of an overseas raw material production base. Its main business is to purchase palm fruit from the local area and transport palm oil back to China for intensive processing. In 2009, in order to further reduce the cost of raw materials and extend the industrial chain upstream, Shuangma Group acquired 6 plantation companies in East and North Kalimantan, Indonesia, merged and leased 2 wood processing companies, and the contract controlled land area up to 1,000 square kilometers, actively carry out the construction of the entire industrial chain such as palm tree planting, palm oil pressing, and oil production and processing. At the same time, in order to efficiently use land resources, it actively develops businesses such as wood processing, agriculture and aquatic product breeding.

After 14 years of unremitting investment and construction, Dukuda (Indonesia) Co., Ltd. has become the largest and most tax-paying Chinese enterprise in the northern Jakarta Free Trade Zone. Dukuda produces 300,000 tons of various fatty acids each year, with sales exceeding RMB 1 billion, 70% of which are shipped back to China, and 30% are exported to Germany, the United States, South Korea and other countries. In addition, the project also drives the export of other Indonesian products by nearly 200 million yuan each year, increasing local employment by 500 people. The "Duanma" oil and fat product brand owned by the group has also successfully "breached out of the country and into the world", realizing the true "going out" of Chinese private oil and fat brands.

(3) Create provincial-level overseas industrial clusters with high standards

After the 18th National Congress of the Communist Party of China, my country's opening to the outside world has moved toward higher quality and deeper levels, and cooperation with the world economy in a wider range of fields. In particular, the implementation of the "Belt and Road" initiative has opened up a new space and new model for my country's opening to the outside world, and the ways and models for enterprises to "go global" are also constantly innovating. Our province attaches great importance to enterprises going out to explore the international market, and has issued relevant policies to encourage and support powerful enterprises to build industrial parks, commercial cities, agricultural and forestry ecological parks and other economic and trade cooperation clusters overseas, and use this as a carrier to export China’s superior production capacity, Chinese technology, Chinese standards, Chinese management experience, etc., strengthen bilateral cooperation with the host country for mutual benefit and win-win results.

In order to cooperate with the relevant departments of the provincial government to accelerate the creation of provincial-level overseas industrial clusters, to promote the construction of overseas raw material production bases with higher standards and broader perspectives, and to greatly improve the raw material supply capacity of enterprises and industries, Shuangma Group invested in the establishment of Indonesia East in 2013. Kalimantan Island Agriculture, Industry and Trade Economic Cooperation Zone Investment Management Co., Ltd. has established the park management committee and invited professional organizations to design the overall development plan of the park. The plan will be 5-8 years to build an approximately 1,000 square kilometers that will gather natural resources. Development, large-scale palm orchard planting, industrial supporting processing and business logistics services are integrated multi-functional compound economic and trade cooperation park. The planning and construction of the park aims to use Indonesia’s advantageous resources on a larger scale and more efficiently based on the “going global” development foundation and experience, transfer the province’s advantageous production capacity, open up the upstream and downstream links of the industrial chain, and further resolve the contradiction between the supply and demand of raw materials in the petrochemical industry. Significantly reduce costs, realize large-scale and intensive business development, and improve the international competitiveness of the enterprise and the entire industry.

The planned area of ​​the agglomeration area is 1,000 square kilometers, of which 16 palm plantations of 50 square kilometers are planned to be built, each palm plantation is equipped with a palm oil mill, and every four palm plantations are built with a refinery, and a total of 16 oil mills will be built. And 4 refineries. At the same time, a large logistics storage area is planned to be built in the gathering area to manage the storage and delivery of all goods in the park. In addition, 500 acres of industry office area and 2,000 acres of life service area are planned. After the development of the park began to take shape, in order to share platform resources and drive the joint development of domestic and foreign investment enterprises, the group began to integrate international and domestic industrial resources, and actively applied for projects in the overseas industrial clusters of Jiangsu Province. The "Cooperation Zone" was recognized by the Jiangsu Provincial Department of Commerce and the Department of Finance as the first overseas industrial cluster in Jiangsu Province.

At present, the agglomeration area has developed a land area of ​​about 40,000 hectares, of which 20,000 hectares of palm trees bear fruit, two oil mills have been built, and the annual sales of crude palm oil are expected to be 50,000 tons. Palm plantation in the agglomeration area is still developing steadily at a rate of 2500-3000 hectares per year. The investment in the plantation project alone has reached 300 million U.S. dollars, and 12 companies have entered the park.

(4) Accelerate the extension to the downstream high value-added industrial chain links

The industrial uses of palm oil are mainly divided into two categories: one is the products directly obtained from palm oil, such as soaps; the other is oleochemical products, such as fatty acids, glycerin, etc., and the use of different chemical methods for fatty acids, etc. Various derivatives are obtained from intensive processing, and the more downstream the industrial chain is, the higher the technical level and the higher the added value. Palm oil is an important export earning item in Indonesia. About 40% of the country’s GDP and 60% of the country’s citizens are related to the palm oil industry. A stage in urgent need of development. On the basis of summarizing the development experience of "going out", Shuangma Group has continuously achieved new self-breakthroughs, benchmarked against world-class petrochemical production enterprise groups, accelerated the extension to the high value-added links of the industrial chain, and focused on improving the core competitiveness of the enterprise. Help the local industry upgrade.

The oleochemical project of Xingzhong Industrial Park in Indonesia is another masterpiece of Shuangma Group's overseas development strategy upgrade. The project is located in the KBN Cakung Free Trade Zone in Jakarta. It covers an area of ​​5 hectares and is less than 5 kilometers from Jakarta International Terminal. The total investment is 514.2 million yuan. After completion, it can produce 200,000 tons of stearic acid, 30,000 tons of hydrogenated palm stearin, 25,000 tons of palm wax, and products such as glycerin, oleic acid and soap base. The rubber and plastic additives, daily chemicals, surfactants, chemical, food, and cosmetic intermediates and raw materials produced by the project have broad markets and development prospects at home and abroad. The project will realize the upgrade of the entire oil industry chain of the Group and promote the strategic position of Shuangma Group on the international oil and fat map to a new level. After the project is put into production, the annual sales revenue is expected to be 1.6 billion yuan, and it is estimated that it will bring more than 50 million yuan in new taxes to the local area each year, which can enhance the development level of Indonesia in this industry and realize the iterative upgrade of the industry.

3. "Going out" experience and enlightenment

"The sea is wide and the sky is high, and the sky is high and the birds fly." Shuangma, which has gone abroad, has obtained a new development platform. Not only does the industrial chain become more complete, but more importantly, the company's business philosophy has developed from sticking to one place to globalization. It greatly broadens the vision of decision makers and employees, and at the same time enhances the company's self-confidence to compete with the world's strongest players. The development of Shuangma Group's overseas investment projects is inseparable from the guidance and support of governments at all levels. Especially in terms of strategic guidance, policy support, and supporting services, the focus of local government's cultivation and strong support is very important.

One is to earnestly understand the spirit of the Party Central Committee and closely follow the country's various policy guidelines. "Going out" for an enterprise is like a small boat entering the ocean, but our backing is the country and the Party Central Committee. It is like navigating the sea and relying on the helmsman. The enterprise "going out" only has to earnestly understand the spirit of the Party Central Committee and follow. Only under the guidance of national policy can we reach the other side safely. In 2005, Premier Wen Jiabao stated in his government work report: "We must further implement the'going out' strategy, encourage qualified enterprises to invest abroad and cross-border operations, increase support for credit, insurance, and foreign exchange, and strengthen support for'going out'. The guidance and coordination of enterprises shall establish and improve the oversight system of overseas state-owned assets." The leaders of Shuangma Group have national development feelings, macroeconomic strategic thinking, and a spirit of reform and innovation. They firmly grasped the strategic opportunities and boldly implemented the "going out" strategy under the guidance of national policies.

The second is to keep up with the market and stay at the forefront of change at all times. The development of the manufacturing industry relies on two eternal themes, that is, efficiency improvement and cost reduction. Shuangma Group moved from the domestic market to the international market in 2006, and continued to develop upstream with the help of Indonesia’s resource advantages. It lies in keeping up with the market and seizing resources. Especially as a private enterprise at the forefront of the manufacturing industry, it must always maintain its ability to learn and be innovative in order to steadily and steadily improve its own competitiveness in order to gain a foothold in the competition.

The third is to actively promote the development of localization and integrate into the culture and life of the locals. The implementation of localized operations and the formation of strategic cooperation with strong and reputable partners in the investment area can not only reduce costs and avoid investment risks, but also achieve benefit sharing to contribute to the local economy and stabilize the investment position of Chinese-funded enterprises in the local area. Actively participate in public welfare undertakings, participate in the construction and financial support of local residents’ medical, educational and religious activities, and implement social responsibilities. The group invests more than 100,000 US dollars in medical and education expenses in the villages and towns where it is located each year, which has greatly increased Chinese-funded enterprises. Image and reputation. To help solve local employment, the Shuangma overseas investment project has driven more than 2,000 local jobs, including more than 1,400 people in agricultural projects and nearly 600 people in oil processing, all of whom are villagers and laborers in the villages near the investment projects.

The fourth is to make full use of bilateral policies and various financial products to explore the market innovatively. Several financing projects have been developed through various domestic and overseas banks and financial institutions to provide sufficient blood for the sustainable development of the project.

It is a difficult step for companies to go abroad. In an investment environment with incomplete information, language barriers, and different cultures, they need the courage and courage of decision-makers, the courage to be the first, and the perseverance not to be defeated by difficulties. . “There will be times when the wind and waves break, and the clouds will be sailed directly to benefit the sea”. I believe that under the guidance of the country’s “going out” strategy, Shuangma Group’s international business path will become wider and wider, and it will gain huge operating benefits in the enterprise. At the same time, it strives to serve the national development strategy and establish a good image of Chinese manufacturing, Chinese brands, and Chinese entrepreneurs.