Safety products company sees huge opportunities for overseas expansion
The safety and security service industry seems to be one sector that has been affected the least by the global economic climate, because no matter how the economy changes, there is always a demand for effective security systems amid growing terrorist activities.
Nuctech Co Ltd is such a company that has grasped opportunities and experienced a high double-digit growth rate despite the slowing economy.
"Security posts a bigger and bigger challenge to many countries and leaders in the world, especially after terrorist attacks, and our products will help protect people's lives and prevent potential safety problems," said Wang Weidong, vice-president of the Beijing-based Nuctech.
He said that Nuctech, a Chinese security inspection service provider, started its overseas business in the wake of the Sept 11 terror attack in 2001, and has managed to bolster its global expansion ever since.
"Our growth is well above the global average rate," he said, adding that 60 percent of the contribution came from overseas markets.
The company's scanners and monitoring machines have been sold to more than 130 countries and regions and are widely used in civil aviation, customs and urban subway and railway systems.
The Chinese company ranked No 1 in terms of market share in Europe, and it accounts for 80 percent of the African market and half of the Latin American market, according to data provided by the company.
The company was founded at Tsinghua University, one of China's top universities specializing in science and technology.
Wang said one of the factors contributing to this market growth is the increasing number of complex security threats worldwide.
Industry figures show that before the 9/11 terrorist attack, few baggages were screened for explosives at airports worldwide. But now that percentage has risen to 100 percent in many countries.
The world's security technologies for transportation industry including ports and railways were worth close to $2.5 billion in 2010 and are forecast to record yearly growth of 5 percent to almost $3 billion by the end of this year, reports the United States-based BCC Research LLC, a market research company covering changes driven by science and technology.
"It is just one improvement, but it is very important to travelers' safety," he said.
The increasingly sophisticated nature of some international organized security threats has also posted a higher requirement to Nuctech's products, Wang said, and the company has put lots of efforts in its research center to improve and update its security inspection system and products.
Currently, Nuctech has developed more than 160 security inspection products, from X-ray imaging to radiation detection.
"It is an ongoing process, and we will never stop making innovation and advancement," Wang said.
