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By Mike Lee
NORDIC Flow Control, a systems integrator and manufacturer of marine, oil and gas control systems, has come a long way since 1998, when founding director Eric Lin started the company with a staff of just five on 2,000 sq ft premises.
Today, Nordic has a total staff strength of 167, and 35,000 sq ft of factory space in Singapore plus 30,000 sq ft in Suzhou.
In the works is a new 20,000 sq ft facility to meet increasing operational requirements in Suzhou.
But, the path to Nordic's success was not without roadblocks. The company was once on the brink of liquidation. Mr Lin even had to borrow funds with his credit cards to pay the bills.
Not wanting to throw in the towel, Mr Lin and sales director Dorcas Teo approached one of the company's investors, Mr Chang Yeh Hong, for one last chance to turn Nordic around.
The crisis turned out to be a blessing in disguise. Mr Chang, a banking veteran with more than 18 years of experience, was at that time retiring from finance. He took up an active role as managing director with Nordic.
With his extensive experience working in global institutions, he regrouped the operations and implemented processes and systems that were previously lacking.
Through grit and determination, Nordic's fortune took a turn for the better. The company expanded and moved to its current premises at Teban Gardens Crescent and set up representative offices in Shanghai and Korea.
In 2005, it recorded several million- dollar projects from European clients Consafe and Modec.
In 2007, the company joined the ranks of SME 500 companies in Singapore.
This year, Nordic makes the leap to the Enterprise 50 list of top privately held companies here.
China is currently Nordic's biggest market, constituting close to 75 per cent of its total sales.
2008 was a stellar year for the company, with doubled sales growth in China, thanks to a change in sales strategy from an agentdependent model to setting up the company's own direct sales force supplemented by agents.
Nordic also has a presence in Malaysia, Taiwan and Korea. Its network goes as far as South Africa, Spain, and Denmark.
To date, Nordic has installed systems on over 1,000 vessels. The MRO (maintenance, repair and operations) for these vessels provide a stable stream of income.
The company is also tapping into the market potential of converting and retrofitting old vessels. While such work is more complex, it offers higher margins and a high barrier of entry.
To further build Nordic's reputation as a reliable and consistent solutions provider, the company is rolling out a strategic customer care initiative to ensure total customer satisfaction.
'Branding is not just about what we think about our product and services, but also what customers think of us - hence the importance of customer care,' says Mr Chang.
The company actively solicits client feedback through avenues such as customer satisfaction surveys and dialogue sessions.
There are also loyalty programmes giving clients cost-savings through discounted prices for service and parts, while protocols for e-mail and voice calls ensure efficient communication with clients.
While Nordic has a healthy order book of around $80 million and is growing for the next three years, the company is exercising prudence and vigilance when it comes to managing financial risks.
For instance, the company proactively conducted roadshows for banks to secure increased lines for 2008's doubled sales. Despite the tight credit market conditions, the banks were overwhelmingly supportive.
Looking ahead, the company aims to more than double its client base in China to 100 shipyards within three years, says Mr Chang.
While China provides ample room for growth with around 900 shipyards, Nordic is also targeting emerging markets like Brazil, Russia, Vietnam and India as part of its internationalisation strategy.
Indeed, Nordic's potential market is huge. 'Any vessel that floats on water can benefit from our solutions,' says Mr Chang.
This article was first published in The Straits Times.
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