Baglioni tanks and Special Pressure Equipment abroad: challenges and opportunities of having a plant in China

It is the early 2000s when Baglioni opens its first production site in China .

A major milestone followed a few years later by a second plant to produce Special Pressure Equipment specifically for the Asian market.

For our Company to operate in the world’s largest market, as well as one of the most important drivers of the global economy, is a source of great pride and incentive to focus further oninternationalization, but it is also a path not without difficulties.

Indeed, the spatial size, cultural differences and exponential growth of this country require considerable effort and deep specialized knowledge.

Let’s delve deeper together in this article.

The challenges of the market for tanks and Special Pressure Equipment in China

One of the main issues in having a factory in China is that of distance.

Traveling to China to give support to local staff requires effort from an economic and organizational standpoint. Efforts that have greatly increased due to Covid and the resulting restrictions that have limited travel options .

Physical distance, but also cultural distance: the language barrier and different ways of thinking about and approaching problems is a factor that should not be underestimated.

To remedy this, we chose to hire entirely Chinese staff, including the plant manager, with only one Italian employee. A choice against the grain compared to many other European companies that prefer to rely on expats instead, but one that allows us to better understand and align ourselves with local customs and traditions .

Then there is an additional wall that Companies operating in China have to deal with: the Chinese firewall. This is a real barrier that acts as a filter between the Chinese Internet and that of the rest of the world.

However, this firewall, which is intended to control Web traffic nationwide, causes a reduction in our line speed in servers and information exchanges, making our work more complex.

Last but not least is the problem related to Covid.

An unpredictable and unexpected event that not only greatly restricted our travel and travel to China, but also slowed down the Asian economy, reducing its growth with worldwide consequences.

Another challenge faced recently was the relocation of our Plant,

for a comprehensive reorganization of our presence in China.

While this has resulted in the loss of several already trained workers from Shanghai not moving to Zhejiang Province, it has also paved the way for new opportunities in the view of:

• increase production capacity
• Targeting supply on higher value-added segments

Tank and Special Pressure Equipment market opportunities in China

As we mentioned earlier, China’s is the world’s largest market and one of the most important drivers of the global economy.

Having our own plant in China therefore gives us access to an immense market with enormous potential that is constantly expanding.

In our mission to internationalize, the opportunities offered by China are therefore too important to ignore.

In addition, China gives us a way to create winning synergies with our Group’s other plants: from China we send semi-finished products and carpentry to Europe and America.

This allows us to have an efficient and responsive supply chain that makes our Company more effective and ready to respond to the needs of customers and suppliers.

AIRCOM Baglioni: the Plant CHINA for Pressure Solutions Baglioni

We have had a presence in China since 2003, the year that marked the opening in Shanghai of the AIRCOM , specializing in the production of:

• Pressure tanks of compressed volume between 10 lt and 1000 lt.

• Special pressure vessels
• Separators and filters

The AIRCOM Baglioni plant in China was established with the need to work in the Asia-Pacific markets, always ensuring the standard of high quality at competitive prices.

In 2021 the plant was moved to Haiyan, Zhejiang Province.

Production is currently divided into three main areas:

• Carbon steel and stainless steel pressure vessels.
• Special Pressure Equipment for the production of air/oil separators.
• Flashtanks for refrigerant gas recovery, pressure tanks for natural gas.

Finally, the plant is suitable for product development according to BG150 DI DII, Japan, Singapore-Malaysia, Australia certifications . ASME, Canada, Brazil, CE, PED, AD2000, Marine.

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