Host: Welcome to Mega information CEO interviews with Chinese companies. Today we are at Haining, China, very close to Shanghai, Hangzhou and Ningbo. We are at the Komer factory in Haining, and they produce flue pipes for China and the export market. We are here with the General Manager Mr. Xu. Thank you for meeting us. Thank you.

Host: And he’s gonna describe us his products.

Host: The first question is , why did you choose your industry?

Xu Xiangsong: Before 2004 I met the people from chimney flue industry and they introduced and explained a lot about this industry to me. I wanted to start my own business at the same time. So we did a market research and found out that there was no company in China specialized in producing chimney products at that time, only American and European companies did that. Then I decided this was the business I would start. We worked on technology, trading and selling. Chimney industry has a high market entrance standard and I love to do challenging industry, I am pretty confident that I could do well.

Host: Very good. Can you describe your leadership style in this company?

Xu Xiangsong: democratic, tolerant, visionary and magnanimous.

Host: Next question. What qualities do you look for in an employee that you hire?

Xu Xiangsong: Honesty, trustworthy, earnest and diligent.

Host: Your industry. Could you talk a little about your industry? For example, what direction do you believe your industry with the flue pipe is going in?

Xu Xiangsong: As for the direction of this industry, first must be the energy efficiency and saving, which is also what our company is now working on. And we believe safety and environmental protection are the trend of this industry too. You can see the appearance design of our products is delicate and pretty. For example, this product is made in America. And this is made in our factory. We are fairly confident with the quality and appearance of our flue pipes and there is no doubt that our product can access the American market. This is our product and that is made in United States. You can compare these two. We really do very well.

Host: Did you ever do any exhibitions overseas to show your products?

Xu Xiangsong: We did a HBS exhibition in Atlanta Georgia in 2012 where there were several stands exhibiting products concerned with fireplace, Chimney and fluepipes. And it was in this exhibition that we were aware of the great importance to safety attached by American customers and the high safety standards. So we set up a testing laboratory for the American UL103 to improve our products. Now we have some American customer negotiating business with us. But we will only start developing business with them after we get the UL certification.

Host: Now let’s move on to talk about your company itself and your factory. First question, are there any advantages to your location here in Haining?

Xu Xiangsong: The location of my company is in Chinese Yangtze River Delta, the most economically developed region in China. It is only one hour to Shanghai and Hangzhou. And it takes only an hour to reach the harbour , airport, high-speed rail and train station. So the traffic is very convenient for customer delegation to visit company and negotiate businesses.

Host: I understand. OK. How big is your factory in square meters?

Xu Xiangsong: 6500 square meters in area.

Host: And how many machines do you have?

Xu Xiangsong: As you saw just now, there are 22 machines in total among which most are domestic machines. And 4 pieces of equipment can meet America UL standard.

Host: OK. And a important question, what quality controls do you use to produce these products?

Xu Xiangsong: We first adopt the standards series ISO9000. Meanwhile, we adopt a European standard, EN856-1standard too. According to the actual situation of company, we also set up a target of CE certification. Now we are already CE Certified.

Host: OK. And do you have separate export department?

Xu Xiangsong: The two gentlemen you saw specialize in marketing and exporting, very professional and dedicated.

Host: Now let’s talk about your customers. Where do your main customers come from currently?

Xu Xiangsong: Our main customers come from Western Europe, Japan and South Africa. The domestic customer only occupies 10% .

Host: Very good. Well, we wish you much success with your export plans for the United States. And if there are any American companies out there, this is a reliable manufacturer at Haining, China of flue pipes. We highly recommend his products. Thank you Mr.Xu.

Host: Now we are here with Allen who is actually the sales manager for Comer and he is kindly agreed to speak about his products and the uniqueness. Thank you, Allen.

Host: We see here basically stainless steel flue pipes.

Xu Xiangsong: Yes.

Host: And that’s the main material stainless steel. That’s correct?

Xu Xiangsong: Correct.

Host: The length of the pipe.

Xu Xiangsong: Yes, from here to here. 48 inches.

Host: OK. This flue pipe is made of two parts or two sets. The inside and the outside. Right? Could you say anything about that?

Xu Xiangsong: Yeah. The inside and outside that we made we always use thetig welding T-I-G welding。

Host: Tig welding? So we could see that right?

Xu Xiangsong: You can see the welding sink very clean and nice.

Host: Yes, nice and clean. Straight as opposed to other manufacturers , they ust stamp these stainless steel toghether.

Xu Xiangsong :Yeah. You can see the US manufacturer use the, I think the old technology in the last 70s,1970s.

Host: Yes, to stamp it together.

Xu Xiangsong: Very old technique, always. Such techniques are really behind the world I think. I think the US manufacturers are really reluctant to provide the latest technology to the customers, to the clients in United States. But we want to present our flue pipes with the latest technology. I also think such kind of technology is very popular in Europe. I don’t understand why United States manufacturers reluctant to provide such kind of nice …

Host: Perhaps cost.

Xu Xiangsong: Maybe, the labor cost.

Host: Very good. OK. You have mentioned those are elbows there.

Xu Xiangsong: Yeah. The elbows.

Host: Different degrees, right?

Xu Xiangsong: Right.

Host: What are the different degrees? 45 degree elbow?

Xu Xiangsong: 45 degree.

Host: Very good. And finally what’s most important is the quality and the UL testing, the UL103. Could you please explain what you are doing now to get the certification in the United States to sell your flue pipes in United States. Cause we saw before your testing laboratory.

Xu Xiangsong: Yes. That’s the testing laboratory, the equipment and all the working procedures are complied with the UL standard, also all the equipment and machines such as gas burner（燃炉） or that connecting systems are all introduced by the UL engineer. We followed their introductions so if we comply the test in our lab we can comply the UL standard and the sell to the United States.

Host: Very good, yeah. Is there any last things you would like to say about your position, or about your product or general manager or your company?

Xu Xiangsong : I think the general manager Mr.Xu is quite a kind and ambitious man. He invests quite rolls of money in the testing lab. That’s really no one in China can do this.

Host: I really noticed that. I was impressed before.

Xu Xiangsong: Lots of money invested.

Host: So this is a really Chinese company that wants to do very good products.

Xu Xiangsong: Yeah. We want to be professional chimney manufacturer.

Host: Yes. We can see that by the testing laboratory and the quality control. Very good. Thank you Allen.

Host: Thank you.