Keeping power cool in Hong Kong

Most of the world's electrical power has passed through a series of transformers by the time it reaches the consumer. These transformers reduce the voltage so that the electricity can be transmitted safely and economically. Many of these transformers are filled with fluid, which acts as a dielectric,
a non-conducting barrier between electrically conducting materials, and also as a coolant to transport the heat away from the inner windings.

Historically, mineral oil has been an acceptable insulating fluid. However, with transformers increasingly being placed within urban areas, there has been a specific need for a more fire safe and environmentally friendly transformer fluid.

MIDEL, produced by M&I Materials, is a transformer fluid which is readily biodegradable, has a fire safe ‘K Class’ rating and has a perfect safety record. As a result, it is a trusted product used by companies around the world.

“Most of the worldwide customers that we have worked with over the past 50 years have been based in Europe,” says Jason Cho, Sales Manager of M&I Materials Ltd. “But, in recent years we have found that many original equipment manufacturers have moved their manufacturing, production, and even R&D facilities to the Far East, through joint venture or technical co-operation arrangements.”

Exploring the market overseas

To keep up with the market trend and develop their client base, the company decided to pursue business opportunities further afield.

“We recognised that there was potential scope for working with Hong Kong power utilities companies,” says Cho. “Our products have had an excellent track record in western power utilities markets for many years. But, whilst this is impressive, we knew that this would not be enough to get us into a new market.”

M&I decided to use UK Trade & Investment’s Overseas Market Introduction Service (OMIS) to investigate the potential of the market in Hong Kong for MIDEL. Through OMIS, M&I was able to identify appropriate contacts in relevant companies.

“The market information that we got from OMIS was just what we needed to know,” says Cho. “UK Trade & Investment also gave us lots of useful suggestions about how to get into the market initially, which meant that we didn’t have to make any unnecessary mistakes due to misunderstandings, or not being familiar with the local market.”

“ The market information that we got from OMIS was just what we needed to know,”

Making an impression

M&I clearly made a good impression because the company was invited to make a technical presentation about Ester Transformer Fluids, at the Annual Symposium of the Hong Kong Institute of Engineers. This was a great chance for them to demonstrate and publicise their products within the industry. The Symposium led to some positive follow up meetings and the start of successful long term working relationships.

“It was a great honour to be invited to present at the Symposium,” says Cho. “UK Trade & Investment also lined up a series of meetings for us with possible end-users of our products, both in Hong Kong and in Macao.”

Having made an exciting start, M&I is continuing to develop business channels with key customers in Hong Kong. But, the company recognises that it can take time for industrial products to be integrated into an industry.

“You need to have patience when you are hoping to do business with a large utility company,” says Cho. “These opportunities do not come around often, but you have to be ready when they do, so that you can make the most of them. UK Trade & Investment’s OMIS has helped us to do just that.”

M&I is continuing to develop business channels with key customers in Hong Kong

The UK and Hong Kong

Hong Kong and the UK are close trading partners. In 2006, the UK exported £4.1billion worth of goods and services to Hong Kong, primarily made up of power-generating machinery equipment, electrical machinery, telecommunications and office equipment. As a result, the UK is ranked as Hong Kong’s sixteenth largest trading partner.

As well as being a major market in its own right, Hong Kong serves as a trading gateway to mainland China. It has a dynamic and accessible market, with no barriers to market entry. It also offers a long established and diverse network of British businesses able to provide support and services to new businesses entering the region.