Australian export case study
An Australian brake testing company, in only a few years, has begun to capture significant commercial opportunities in key Asian markets.
Romteck PTM (RPTM) has designed, tested and exported its innovative technologies and services to Thailand and Malaysia and is now making inroads into China.
The company develops special testing systems for automotive components, specialising in brake systems. RPTM also provides testing services, equipment, and training and consultancy services.
Formed in 2007 in Melbourne, RPTM has penetrated overseas markets with the assistance of Austrade and a national auto strategy geared to helping Australian auto firms compete globally.
Gaining traction in Thailand
RPTM recognised the desire of Thai automotive component manufacturers to break away from their dependency on the Japanese industry and find alternative customers and markets.
With Austrade’s help, RPTM set about understanding the Thai auto industry and its business culture, including identifying and approaching suitable companies for potential business.
“The most surprising and interesting feature of the Thai domestic industry is their eagerness to embrace technology and know-how. For many years they have been confined to manufacturing only and denied access to design and development,” said Michael Lindroos, Managing Director of RPTM.
In January 2011, with their first Thai customer, RPTM secured a Memorandum of Understanding (MoU) for a five-year plan with orders in the first year of A$200,000 for technical services and a pending A$800,000 of testing equipment, wholly designed and manufactured by RPTM in Australia.
Malaysia proves promising
An introduction to Proton Automobile by Austrade secured RPTM a service contract which saw a group of Malaysian engineers visit RPTM’s hi-tech facilities for advanced technical training.
RPTM has also established a relationship with SIRIM, the Malaysian equivalent of CSIRO, with the help of Austrade. A MoU has been signed with SIRIM that seeks to form a joint enterprise in Malaysia using RPTM’s services in Australia as a model for a testing laboratory in Kuala Lumpur, a program with a three-year budget of A$1 million.
“We found that the Malaysian automotive industry is making a serious effort to increase its quality and development capability. They also have a strong stance on independence that invites collaboration on equal terms,” said Mr Lindroos.
China’s scale beckons
After several Chinese automotive trade delegations to Victoria in 2010, RPTM was invited to visit two major vehicle manufacturers in Anhui, China. Austrade staff in China assisted RPTM in navigating the language, culture and administrative processes.
With firm interest shown by Chinese auto companies in acquiring knowledge about Western automobile R&D practice and technologies, RPTM submitted a proposal to a Chinese auto maker for the establishment of a commercial testing laboratory – an A$6M to A$8M budget over a three-year period involving 80% investment from the Chinese firm.
“China is our greatest opportunity and challenge. The most impressive aspect of the many features of China’s automotive industry is their commitment to attain global recognition of their products. In doing so they are making impressive efforts to explore and engage with western business,” Mr Lindroos noted.
Building for the future
Over the next few years, China will be RPTM’s focus for potential joint ventures involving the transfer of technology with local auto producers. For India and South-East Asian markets, RPTM will provide testing and knowledge-based services with equipment sales tailored to an end-user technical environment.
“One has to take into account the unique characteristics of the supply chain and the business culture to make a sensible proposal. That takes time, but trust and patience is rewarded in the Asian relationship and that is where the majority of our long-term business will take place,” Mr Lindroos said.
|