Business news : Essex company Wilks Rubber Plastics secures a new chinese business contract

Essex company sails to success in China, and secures a new business contract worth thousands

Established in 1973, Wilks RubberPlastics is now one of the world’s leading companies in the manufacture and supply of fendering and PVC decking systems for the marine industry.  A family-run SME, the company produces a wide range of goods for use in the marine and shop-fitting sectors.

“The marine industry is naturally a global business,” said MD Chris Berry.  “Although we have always exported, over the last five years we have made a concerted effort to expand our international activity.” The decision was, in part, a pragmatic response to shrinkage in the UK market caused by the economic downturn, but was mainly driven by the ease with which the company’s new PVC decking products could be sold via overseas distributors, without the need to deal directly with numerous individual boatyards – an important consideration for an SME with limited manpower.

The company particularly wanted to explore the potential for working with a distributor in  China:  “We had become aware that an increasing number of Chinese boat-builders were using European or US fittings, due to their high quality, and we wanted to find out if there was a viable market in China for our products,” said Berry.

In 2010, exports of goods from companies in the East of England to China topped half a billion pounds.  With sustained growth that out-performs all other major economies, China is widely recognised as the great economic success story of the past 30 years, and a key export market across many industries.

Having previously worked closely with UKTI East when entering other international markets, Berry took up an invitation to join a Trade Mission to China. UKTI East provided a Market Visit Support grant and the assistance of an international trade adviser prior to, during and after the visit, to help the company navigate Chinese business culture effectively.  During the trip there were opportunities for Berry to meet officials from the British Embassy and CCPIT, China’s international trade organisation, in addition to individual meetings, briefings and other key events.

“We went on the UKTI trip hoping to identify one potential distributor and came back with a choice of four,” said Berry.  “Our PVC decking product proved amazingly popular with boat owners, boat-builders and distributors.   

Since the visit we have established a new production line which has created additional jobs at our plant in Essex; we have also taken on a UK sales manager to allow us to focus more closely on the export market.  Although still in the early stages, we have been very encouraged by developments so far.”

“Entering the Chinese market usually requires several ‘relationship-building visits’ that can be costly for SMEs,” said UKTI Trade Advisor John Tingle, “but Chris and his team didn’t put a foot wrong and have already secured significant initial orders in China as a result.  Unusual, but Wilks has shown that it can be done with the correct approach.”

“With opportunities in abundance for UK companies large and small, the Chinese market is one that Wilks just couldn’t ignore,” said Tingle.  “However, it’s a difficult market to break into without support - for example, many UK firms make costly mistakes within the first five seconds of a meeting simply by presenting their business card in the wrong way, or failing to get their cards translated before the trip, which is considered extremely rude and could eliminate them from future business contracts. Trade missions offer a great opportunity to pick up know-how, ideas, contacts and ultimately, contracts.”

Berry agreed.  “Our major challenge, when doing business in Asia, is that people tend to say ‘yes’ out of politeness, even when they mean ‘no’.  Face-to-face contact has been vital in allowing us to study body language so that we can interpret what people really mean, as has the opportunity to visit the factory floor and put questions to the workforce directly.”

The Trade Mission to China represents the latest link in an ongoing relationship between Wilks and UKTI East.  Wilks had been operating independently within European markets before first approaching the UKTI in 2007 for help with an exhibition it was due to attend in Dubai.  Through the Tradeshow Access Programme (TAP), which helps SMEs to attend trade shows overseas, UKTI East provided grant support to help the company maximise the potential of the event. 

The exhibition proved key in establishing a strong, ongoing relationship with the UKTI and its trade advisors.  The company subsequently passed though other UKTI schemes such as Passport to Export and Gateway to Global Growth, both one year programmes, before the recent Trade Mission to China.  Future goals for Wilks involve exploring US and South American markets, again with support from UKTI.

“UKTI East has always looked after us.  Their help and advice, coupled with grants that have allowed us to invest time and money in different markets, have undoubtedly increased our success overseas.”

To find out more about UK Trade and Investment services in the East of England contact your local International Trade team:

Tel:  0845 641 9955

Email: info@uktieast.org.uk

Website:  www.ukti.gov.uk