DNV is one of the earliest of its kind to set up in China when, in 1888, it established a presence in Xiamen. In 2000, it moved its regional headquarters from Hong Kong to a villa-style office in the park of the prestigious Hong Qiao Guest House. Today. It is hugely confident of its prospects in China working with both domestic and overseas clients.
DNV has been rapidly expanding in China and recently the company set up offices in Nantong, Jiangsu Province and Ningbo, Zhejiang Province, bringing the DNV Greater China network to 31 offices in 21 cities.
Supporting President Hu Jintao’s call for China to forge itself into an innovative and technically advanced county, DNV, backed up by its hundred and forty years of experience and an ongoing substantial investment in research and development, has readily taken up the role in training and supporting China’s diverse industries to grow along the technological-priority track.
Maritime business surging ahead
Among its core operations, the maritime business is surging ahead, offshore activities growing at a steady pace and the industrial certification business is roaring along at near-breakneck speed.
Last year, DNV’s China operation turned in revenues of RMB470m. 25% up on 2004 levels, with maritime accounting for 55 %, offshore for 15% and other industries representing 30%
“Business is going well but there is so much more to be done so we are increasing our commitment to China as more and more clients are expanding their businesses in this fast-growing economy,” says Haugland.
DNV is growing
With more clients come greater numbers of DNV staff, growing about 20% annually with now 450 employees in the Greater China Region.
“Our employees are of course the key resource in our business, and I am satisfied that we have a very competent and committed organisation in place in the region to support our customers,” says Haugland.
His role as regional manager for DNV in China was a natural next step from his previous position as head of business operations in China. He appears confident about the future, stating that the company is well placed to help Chinese companies manage their risks as they expand their business.
“Basically, our business is to manage risk. We do this by certifying the quality and safety of processes and products in the shipping, oil and gas and manufacturing industries,” says Haugland.
A strong maritime tradition
Ship classification has been a foundation of the company since its establishment in 1864. Today, DNV is involved in all phases of the ships’ life, through ship classification, statutory certification and fuel testing. This maritime tradition has attracted new opportunities in growth markets throughout the world, not least China.
According to Haugland, China’s plans to triple its shipbuilding activities by 2015 will present great opportunities for DNV. He explains, “In China, we are setting the standard for how ships shall be built. We are involved in the design and construction process and the classification of ships in operation, and always ensure that they are meeting the minimum requirements that we set for safety,”
He also highlights DNV’s training academies in Shanghai, Dalian and Hong Kong, which share the latest hi-tech information with Chinese shipbuilders, designers and owners. “Technological competence will speed China on the path to become a powerful maritime giant,” emphasizes Haugland.
Acknowledging China’s increasing demand for industrial software, DNV established a local software house in China last year. The software house now has 20 employees developing and marketing innovative software solutions for the marine, offshore and process industries in China.
Since the early 1980s, DNV has also been involved in the oil and gas activities in China. DNV has certified significant development projects by major Chinese and foreign oils firms in the Bohai Sea, East China Sea and South China Sea.
Certification spans across industries
While DNV is known for its expertise in shipping and offshore sectors, a significant part of the company’s business in China is derived from its certification business. “The certification business spans across all industries, from certifying Tsingtao beer to big American car producers in Shanghai,” says Haugland.
“The demand for certification of management systems is rising as companies seek to ensure quality products that can be sold to other countries,” says Haugland, adding, “To ensure the same quality globally, DNV runs a regular training programme in its overseas facilities.”
External certification training is another important service provided by DNV, and it now aims to further its reputation as a training specialist for risk management by offering a wider range of assessment services.
DNV’s risk assessment goes beyond companies: it also applies to societies. “That’s why we are convinced that China will benefit from our services even more in the future,” says Haugland. “When a country grows fast, you introduce a lot of additional risk. DNV’s goal is to help companies and the society at large to ensure that risk is well-managed.”
Red cross cooperation
Finally on a note of social responsibility, DNV is currently working with the Red Cross on clean water and sanitation projects for the benefit of villagers in the Jillin Porvince in Northern China. “It gives us all pleasure to know that we are working in a company with a strong sense of social responsibility and that our work can result in making other people’s lives safer and healthier,” concludes Haugland.
