Thanks to its globalization strategies, the Moon Group has maintained sustainable growth during the past five years, despite growing competition in the market.

Located in Yantai, Shandong province, the group focuses on products such as air-conditioning and refrigeration systems for industrial use, castings, sealing materials and heat exchange equipment.

Its revenue has grown 17.3 percent annually over the past five years to reach 5.14 billion yuan ($86.4 million) last year, while its profits increased 30 percent annually during the same period reaching 540 million yuan last year.

"The Moon Group cannot maintain sound growth without globalization strategies," said Li Zengqun, chairman of the group.

Its products have been sold to more than 70 countries and regions, thanks to its global network of sales and service offices that cover Asia, Africa, the Middle East, South America and Russian-speaking regions.

Li said cooperating with foreign companies to build joint ventures in China is part of the group's globalization strategy.

"By cooperating with foreign heavyweights, we can get access to advanced technologies and efficient management skills, as well as investment," said Li.

Its foreign investment has reached $80 million, and the group has set up joint ventures with companies such as Dunham-Bush in the United States, Ebara Corp in Japan, Hyundai Heavy Industries in South Korea.

With regard to exploring overseas market, Li said the group has set its sights on building branches and acquiring foreign companies.

In 2006, it spent $5.52 million to build a branch in Vietnam. Revenue generated from the branch reached 41.87 million yuan in 2013, more than 10 times the amount in 2009.

In 2012, the group spent $173.9 million to buy a stake in Dunham-Bush, one of the world's top five companies in central air-conditioning systems. The acquisition package includes Dunham-Bush's factories in Malaysia, Britain, South Africa and China, as well as its global network of sales and service centers.

Li said the acquisition has helped the company expand its business in overseas markets and sharpened its competitive edge in the manufacturing of cooling facilities.

The group is the first in China to have mastered the technology of producing refrigeration systems using CO2 as the refrigerant. The technology has been recognized by the Multilateral Fund of the United Nations and the Chinese Ministry of Environmental Protection as being environmentally friendly.

The group's globalization strategies are supported by technological innovations, Li said.

Technologies developed by the Moon Group for producing screw compressors are up to the world's leading standards, and since 2010, the group has used information technologies to raise efficiency of its businesses worldwide.

These include online systems for enterprise resource planning, research and development management and office automation.

Li said the company's globalization strategies will help the group become a world-renowned name in the temperature control field.

Contact the writers at zhaoruixue@chinadaily.com.cn

(China Daily 06/25/2014 page12)