Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business...
Transcript of Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business...
![Page 1: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/1.jpg)
2009.03.12
1
Global Technology Integration - A Canadian Perspective
•! David T. Fung •! ACDEG Group
•! At Research Money Annual Conference
•! National Arts Centre, Ottawa (ON), Canada
•! March 12, 2009
![Page 2: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/2.jpg)
2009.03.12
2
Global Financial Crisis - How did one survive?
![Page 3: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/3.jpg)
2009.03.12
3
Real Friends (Innovations)
- The White
Knight on a Brown
Horse
Integrated Technologies
Evolving Markets
![Page 4: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/4.jpg)
2009.03.12
4
Technology and Enterprises
•! A white knight without a healthy horse is a dead knight
•! “NORTEL has technologies stuffed up to its rafters”
•! The “Blackberry” is the right differentiated technology for the evolving market at the right time.
![Page 5: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/5.jpg)
2009.03.12
5
Presentation
•! The ACDEG Group
•!CME Manufacturing 20/20
•! The Rising Emerging Economies
•!New Reality of Value Creation
•!Driving Forces in Global Value Chains
•!Differentiated Technologies
•! Enterprises of Global Integration
•! Summary
![Page 6: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/6.jpg)
2009.03.12
6
ACDEG Businesses
Energy
Environment
Efficiency
![Page 7: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/7.jpg)
2009.03.12
7
Partnerships and Joint Ventures
•!Waste gas to electrical power
•!Renewable energy
•!Recycling packaging wastes
•! Forestry wastes to bio-fuels
•!Wood pulps to paper products
•! Specialty chemicals distribution
•! Specialty electronics
•!Marine Equipment
•! Agri-food and seafood
![Page 8: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/8.jpg)
2009.03.12
8
1980 Sulphuric Acid Distribution System
•!1.5 million MT per year
•!220,000 MT of storage
•!10 storage terminals
•!Unit trains of 36, 54 and 108 cars
•!Dedicated shipper-owned cars
•!Only power and tracks from railways
![Page 9: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/9.jpg)
2009.03.12
9
Distribution Innovation
Unit Trains of Sulphuric Acid
![Page 10: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/10.jpg)
2009.03.12
10
Economic Distance of Acid Distribution
Source: NorFalco LLC
300 km
extended
to
2,000 km
![Page 11: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/11.jpg)
2009.03.12
11
Manufacturing •!Drywall Finishing Tools *
*Business Sold
![Page 12: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/12.jpg)
2009.03.12
12
Advanced Designs and Manufacturing
•! 10 U.S. patents
•!Canadian intellectual property
•!Manufacturing in Canada
•!Capital from Asia
•!Global Sourcing of Parts
•!Markets in North America, Europe and Australia
![Page 13: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/13.jpg)
2009.03.12
13
Waste Plastics Recycling in China
![Page 14: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/14.jpg)
2009.03.12
14
Wet Mechanical Preparation
Central separation of composites -
Pulping and washing the raw materials
![Page 15: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/15.jpg)
2009.03.12
15
Wet mechanical preparation
Shredder - Crushing of packaging
![Page 16: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/16.jpg)
2009.03.12
16
Plastics Processing
Plastics separation Sorting centrifuge
Inlet
Plastics/ water mix
Settlement of light fraction (dehydrated) Water runback
Discharching screw for light fraction
Centrifugal drum
Discharching screw for heavy fraction
Separation liquid
Settlement of heavy fraction (dehydrated)
~ 3,000 RPM
![Page 17: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/17.jpg)
2009.03.12
17
Plastics Processing
Product silos -
Beginning of recycling
![Page 18: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/18.jpg)
2009.03.12
18
New Products from Recycled Plastics
![Page 19: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/19.jpg)
2009.03.12
19
Toys from Recycled Plastics
![Page 20: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/20.jpg)
2009.03.12
20
Environmental Businesses (1)
•!Packaging wastes to recycled products
- Venture in Asia
- Financing from Asia and Europe
- Technology from Germany and Canada
![Page 21: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/21.jpg)
2009.03.12
21
Shanghai WEI-Gang Energy Co., Ltd.
![Page 22: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/22.jpg)
2009.03.12
22
Environmental Businesses (2)
•!Waste gas to electrical power
- Equity from North America
- Debt financing from China
- Technology from North America, Europe and China
![Page 23: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/23.jpg)
2009.03.12
23
Biomass Recovery
Left to rot
Cogeneration
![Page 24: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/24.jpg)
2009.03.12
24
Environmental Businesses (3)
•! Bio-mass Energy
- Financing from Canada, Europe, Asia
- Silviculture rehabilitation and agricultural wastes in the Americas
- Technology from Americas, Europe and China
- Markets in China and Europe
![Page 25: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/25.jpg)
2009.03.12
25
Global Value Generation
Left to Rot
Recovery
Global value
![Page 26: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/26.jpg)
2009.03.12
26
A Virtual Specialty Chemicals Business
•!Markets in North America
•! Sourcing from China and Europe
•!Quality control at ports of shipment
•!Marketing and logistics from Montreal
•! Technical support from Atlanta, GA
•! Financing from Vancouver
![Page 27: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/27.jpg)
2009.03.12
27
Pulp and Paper
•!Fibre sources from the Americas, Europe, Indonesia and Thailand
•!Paper products markets in North America, Europe and Australia
•!Financing from North America, Europe and China
•!Logistics from Hong Kong and Europe
![Page 28: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/28.jpg)
2009.03.12
28
Global Supply Chain and Marketing Pulp and Paper
Wood Pulps
Paper Board and Tissues
![Page 29: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/29.jpg)
2009.03.12
29
World’s Top 10 Trading Nations in 2005
Source: Hong Kong Marine Department
![Page 30: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/30.jpg)
2009.03.12
30
CME Global Business 20/20
•!Take actions to enable productive and competitive Canadian industries to go global
30
![Page 31: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/31.jpg)
2009.03.12
31
Growth in US Merchandise Trade
Percent Change
(1990-2005)
Canada 155%
Mexico 355%
China 1339%
Asia Pacific (incl.
China)
143%
Latin America 177%
Europe 122%
Total World Trade 157%
![Page 32: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/32.jpg)
2009.03.12
32
Mexico lost market share
in U.S. as NAFTA effect
dissipated
Sources: Federal Reserve Bank of Dallas and OECD
![Page 33: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/33.jpg)
2009.03.12
33
Jobs in Mexico’s
Textiles and Apparels in
Maquiladoras
Sources: Federal Reserve Bank of Dallas and Instituto Nacional de Estadistica, Geografia e Informatica
![Page 34: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/34.jpg)
2009.03.12
34
2007 GDP Ranking (Purchasing Power Parity Basis)
Ch
ina
Ca
na
da
Source: CIA World Fact Book
India
![Page 35: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/35.jpg)
2009.03.12
35
China Grew While We Relaxed
2007 Canadian Vehicle Sales
![Page 36: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/36.jpg)
2009.03.12
36
Motor Vehicles Manufacturing (million vehicles in 2006)
•!Canada 2.6
•!USA 10.8
•!Mexico 2.1
•!North America Total 15.5
•! Japan 11.6
•!China 8.9
•! South Korea 4.1
•!North Asia Total 24.6
![Page 37: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/37.jpg)
2009.03.12
37
World Seaborne Cargo Billion Tonnes (1984-2004)
Source: UNCTAD, Review of Marine Transport
Courtesy of DFAIT and Transport Canada
![Page 38: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/38.jpg)
2009.03.12
38
World’s Top 10 Container Ports in 2006
BC
Source: Hong Kong Marine Department
![Page 39: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/39.jpg)
2009.03.12
39
Rapidly Escalating Vessel Size
Future Coastal
Freighters
Current
7-9,000
TEU
Future
12-15,000
TEU
Picture Courtesy of Prince Rupert Port Authority
![Page 40: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/40.jpg)
2009.03.12
40
Prince Rupert Fairview Terminal 2008
Courtesy of Prince Rupert Port Authority
![Page 41: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/41.jpg)
2009.03.12
41
Prince Rupert Fairview Terminal 2012
Courtesy of Prince Rupert Port Authority
2 Million TEU’s
![Page 42: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/42.jpg)
2009.03.12
42
New Gateways
across Continental North America
Courtesy of Prince Rupert Port Authority
Pacific Gateway and Corridor
$6 billion investment projects
![Page 43: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/43.jpg)
2009.03.12
43
Vision – Dare to Dream
Currently projected length = 36 km
Draft = 40 m
Hong Kong – Macau – Zhuhai Bridge
Macau Zhuhai
![Page 44: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/44.jpg)
2009.03.12
44
Determination – Dare to Invest
Courtesy of CN
US$220 billion investment
![Page 45: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/45.jpg)
2009.03.12
45
Discipline – Dare to Build -25 Million TEU Chinese Commitment
Yangshan Port, Shanghai
32 km causeway
![Page 46: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/46.jpg)
2009.03.12
46
The Baltic Dry Index
Courtesy of Dry Ships Inc.
![Page 47: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/47.jpg)
2009.03.12
47
Impact of 2008-9 Financial Crisis
130 vessels anchored in Singapore
![Page 48: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/48.jpg)
2009.03.12
48
Container Volume Delivery and Forecast Continental USA and Canada
Sources: Dr. Jean-Paul Rodrigue, Hofstra University, Drewry Shipping Consultants
Vo
lum
e (T
en
millio
n T
EU
)
Has trans-Pacific container traffic peaked?
![Page 49: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/49.jpg)
2009.03.12
49
Ocean Freight of U.S. Importers from China
Courtesy of the Boston Consulting Group
![Page 50: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/50.jpg)
2009.03.12
50
The Largest U.S. Importers from China
Courtesy of the Boston Consulting Group
![Page 51: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/51.jpg)
2009.03.12
51
U.S. Imports from China
Courtesy of the Boston Consulting Group
![Page 52: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/52.jpg)
2009.03.12
52
Share of Foreign Invested Enterprises in Chinese Merchandise Trade
Source: PRC Ministry of Commerce
![Page 53: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/53.jpg)
2007.02.22 53
Changing Trade Patterns
•! China is becoming the hub of trade between Asia and North America
–! By 2020, China is expected to account for 60% of all Asian-North American trade.
•! Foreign companies account for 60% of Chinese exports – intra-corporate exports.
![Page 54: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/54.jpg)
2009.03.12
54
Global Partnering Turns Bilateral Trade Policies Obsolescent
– Construction Equipment
Construction Equipment
Mechanical parts
![Page 55: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/55.jpg)
2009.03.12
55
Traditional Vertically Integrated Manufacturing
55
Ford in Cleveland
- Iron Ore to Automobiles
![Page 56: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/56.jpg)
2009.03.12
U.S. Paper Board Manufacturing
- Forest to paper board
- Full integrated single pulp furnish, single-ply technology
- Advantages turned to liability?
- Competing with global pulp furnish and multi-ply technology
56
![Page 57: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/57.jpg)
2009.03.12
57
Scope of Manufacturing
–!R&D, Design, Engineering
–!Value Chain & Logistics Management
–!Production Systems & Maintenance
–!Innovation, Continuous Improvement & Quality Control
–!Information Management
–!Marketing, Distribution, Sales & Service
–!Business & Customer Financing
–!Life Cycle Management
![Page 58: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/58.jpg)
2009.03.12
58
Changing Nature of Manufacturing
–!Half of the workers never touch the product *
*IBM Bromont
![Page 59: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/59.jpg)
2009.03.12
59
Competing in World Markets
•! Value = Capitalize on knowledge
![Page 60: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/60.jpg)
2009.03.12
60
New Manufacturing / Trade Reality
Tier Market Supply Intellectual Manufacturing Skill Access Chain Property
Tier 1 Global Global Product Integration Product Management
Technology Test Appl./Des. Engineering
Supply Chain Mgt.
Tier 2 Global Global Technology Major Assy Des./Mfg. Engineering
Regional Regional Process Fabrication Supply Chain Mgt.
Process Mgt.
Tier 3 Regional Regional Process Sub Assy Mfg. Eng.
Local Local Fabrication Production Mgt. Production
Tier 4 Local Local No Niche Fab. Production
New Value Proposition Current Value Proposition
![Page 61: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/61.jpg)
2009.03.12
61
Manufacturing
•!Creating & delivering value via tangible goods
![Page 62: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/62.jpg)
2009.03.12
62
New Reality of Manufacturing
•! Increasingly volatile global markets
•!Limited responsiveness of traditional manufacturing assets
•!Open architecture of trade oriented distributed manufacturing
•!Lean and global supply chains
•!Lots of jobs but different jobs
![Page 63: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/63.jpg)
2009.03.12
63
The Apple I-Pod
10 Cents
40 Cents
Distribution &Retail
50 Cents
![Page 64: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/64.jpg)
2009.03.12
64
Economics of Advanced Technology Industries
Fabrication
Courtesy of
![Page 65: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/65.jpg)
2009.03.12
65
Value Proposition
![Page 66: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/66.jpg)
2009.03.12
66
International Air Cargo 2006
20’ container
Toronto Pearson International Airport
![Page 67: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/67.jpg)
2009.03.12
67
Worldwide Sourcing – Industrial Electronic Equipment
Industrial Electronic Equipment
Printed Circuit Boards
![Page 68: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/68.jpg)
2009.03.12
68
Driving Forces in Global Value Chains
•!Labour and skills availability –!Education and training
•!Technology
–!Innovation
•! Infrastructure
•!Resources recovery
•!Global vision
![Page 69: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/69.jpg)
3/14/09 69
Sustainability
![Page 70: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/70.jpg)
3/14/09 70
Ingenuity
![Page 71: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/71.jpg)
3/14/09 71
Fossil Fuel, Where is thy sting?
![Page 72: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/72.jpg)
3/14/09 72
Asian Supply Chains
![Page 73: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/73.jpg)
2009.03.12
73
Our Past and Their Present
Courtesy of Asia Pacific Foundation
![Page 74: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/74.jpg)
2009.03.12
74
Our Competition ??
Courtesy of Asia Pacific Foundation
![Page 75: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/75.jpg)
2009.03.12
75
Engineering & Technology Resource
Source: Issues in Science & Engineering, Spring, 2007
![Page 76: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/76.jpg)
2009.03.12
76
Engineering & Technology Ph D degrees
Source: Issues in Science & Engineering, Spring, 2007
![Page 77: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/77.jpg)
2009.03.12
77
Telecom Growth in China
CAGR = 21%
CAGR = 40%
![Page 78: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/78.jpg)
2009.03.12
78
New Chinese Standards - A NAFTA Disrupting Strategy
•! Standardized Linux operating system
•!Media - EVD vs DVD
•!RFID (Radio Frequency Identification)
•! Audio visual - AVS vs MPEG-4
•! Telecommunication - TD-SCDMA (3G) as stepping stone to new 4G standards
•!Wireless security - WAPI
![Page 79: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/79.jpg)
2009.03.12
79
Pulp Furnish Trends in China (1980-2004)
![Page 80: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/80.jpg)
2009.03.12
80
Chinese Fibres Import Growth
Courtesy: Accel Products Ltd.
![Page 81: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/81.jpg)
2009.03.12
81
Waste Paper Imports into China (1995 - 2007 )
Courtesy: Accel Products Ltd.
![Page 82: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/82.jpg)
2009.03.12
82
Sources of Recovered Paper Imports !
Courtesy: Accel Products Ltd.
![Page 83: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/83.jpg)
2009.03.12
83
Chinese Paper Products Export (1999-2005)
Courtesy: Accel Products Ltd.
![Page 84: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/84.jpg)
2009.03.12
84
China’s High Technology Plan 863 Priorities (1)
•! ICT
•! Biotechnology and pharmaceuticals
•!New materials
•! Advanced energy systems
•!Resources and environmental
![Page 85: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/85.jpg)
2009.03.12
85
China’s High Technology Plan 863 Priorities (2)
•! Advanced agriculture
•! Advanced manufacturing
•!Ocean technology
•!Global monitoring and aeronautics
![Page 86: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/86.jpg)
2009.03.12
86
Chinese Rocketry and Space Exploration
![Page 87: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/87.jpg)
2009.03.12
87
China’s Urbanization
•!1993: 28%
•!2004: 42%
![Page 88: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/88.jpg)
2009.03.12
88
China’s Environmental Challenges and Opportunities
•! 40% of cities face water shortages
•! Soil erosion on 37% of country’s land mass
•! Serious acid (<pH 5.6) rain in 41% of cities
•!US$125 billion environmental spending by 2010 (similar to the forecast investment in the Alberta Tar Sand projects)
![Page 89: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/89.jpg)
2009.03.12
89
Enterprises of Global Integration
•! IBM
–!Main frame computers in 1980’s
–!High performance chips and Management services in 2000’s
•!Dell
–!Start-up in 1980’s
–!Worldwide sourcing
–!Distribution and custom assembly services in 2000’s
![Page 90: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/90.jpg)
2009.03.12
90
IBM Employees
![Page 91: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/91.jpg)
2009.03.12
91
Dell Employees
![Page 92: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/92.jpg)
2009.03.12
92
Impacts of Global Value Chains
•!Lots of jobs but different jobs
![Page 93: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/93.jpg)
2009.03.12
93
Components of Innovation
•!Driven by market needs
•!Right differentiated technologies
•!Global integration of resources
![Page 94: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/94.jpg)
2009.03.12
94
Innovative R&D Communities
•! Park the ego at the gate
•!Understand the market needs
•!Collaborate to achieve global integration
•!Differentiate the goals of training highly qualified personnel vs. innovations for commercial success
![Page 95: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/95.jpg)
2009.03.12
95
Flexible business models
In China
Sourcing QC
Manufacturing
Inventory Post
Production
In Hong Kong
Financing Research Transport
IT
Marketing Distribution
In Home Market
Strategic development Design
Sales
Global Vision
Courtesy of HKTDC
![Page 96: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/96.jpg)
2009.03.12
96
International Science & Technology Partnership Canada
(www.ISTPCanada.ca)
An independent non-profit agency contracted by the Government of Canada to implement the bilateral science & technology agreements between Canada and selected countries and regions*
* Including China, India, Brazil, California, etc.
![Page 97: Global Technology Integration - A Canadian Perspective · A Virtual Specialty Chemicals Business •!Markets in North America •!Sourcing from China and Europe ... Pulp and Paper](https://reader034.fdocuments.us/reader034/viewer/2022050518/5fa228214e60902d4744e95c/html5/thumbnails/97.jpg)
2009.03.12
97
Summary
•!New reality of global manufacturing
•!Recognition of the multiple driving forces of global value chains
•! Innovation – integrate market-pulled with technology-pushed
•! Future belongs to enterprises of global integration of capital, resources, technology and markets
•! Scientists must park their egos at the gate of commercialization.