Transforming a Finnish Forest, Paper & Packaging Company: Unlocking International Markets and Boosting Profits Through Countertrade
Here's What We Do Better
Our client is a prominent Finnish forest, paper, and packaging company. They produce a variety of paper products, packaging materials, and other forestry-based goods catering to both B2B and B2C markets. Despite being a leader in their domestic market, the company faced significant challenges in entering international markets due to high tariffs, trade, and regulatory barriers.
The client sought our expertise to help them overcome these barriers and expand their international market presence. They aimed to establish a global network of suppliers, customers, and trading partners while reducing production, operation, and transaction costs. Additionally, they wanted to increase sales revenue and optimize their excess capacity and underperforming activities.
To assist our client, we implemented various countertrade mechanisms tailored to their specific needs:
Counter-Purchase: We facilitated counterpurchase agreements with suppliers and customers in target countries, allowing our client to import materials and sell products in exchange for purchasing goods and services from their trading partners.
Offsets (Direct and Indirect Offsets): We established offset agreements with suppliers in various countries, enabling our client to fulfill local investment or spending requirements and reduce tariffs and trade barriers.
Joint Ventures (JVs): We assisted our client in forming strategic JVs with local companies in target markets, sharing technology, expertise, and resources to improve competitiveness and access to markets.
Build-Operate-Transfer (BOT) and Build, Lease, and Transfer (BLT): We guided our client in establishing BOT and BLT arrangements to build and operate production facilities in target countries, eventually transferring ownership to local partners after a specified period.
We started by conducting a comprehensive analysis of our client’s target markets, identifying suitable trading partners and potential joint venture opportunities. We then negotiated counterpurchase, offset, and JV agreements on behalf of our client. Simultaneously, we guided them through the process of establishing BOT and BLT arrangements, ensuring smooth operations and eventual transfer of facilities.
Our client experienced remarkable results through the implementation of these countertrade mechanisms:
Counter-Purchase: The company’s sales revenue in target markets increased by 150%, and they were able to tap into new markets across 25 countries.
Offsets: Our client achieved a 70% reduction in tariffs and trade barriers, leading to a 50% reduction in production and transaction costs.
Joint Ventures: The company expanded its supplier and customer base in 15 new countries and established new global distribution channels and sales networks.
BOT and BLT: Our client successfully built and operated production facilities in five target countries, optimizing excess capacity and underperforming activities.
Through our expert countertrade consultancy, the Finnish forest, paper, and packaging company successfully overcame trade barriers, expanded their global presence, and significantly boosted their profits. By leveraging multiple countertrade mechanisms, they were able to achieve their objectives, ultimately transforming their business operations and gaining a competitive advantage in international markets.
What YOU CAN DO TO
ACHIEVE SIMILAR RESULTS
Conduct thorough market research: Before expanding your business operations internationally, conduct extensive research to identify potential trading partners, target markets, and suitable countertrade mechanisms.
Tailor your countertrade strategy to your business needs: Each company has unique requirements, and a one-size-fits-all approach to countertrade may not be effective. Identify the most suitable countertrade mechanisms that align with your business goals and requirements.
Seek expert advice: Countertrade is a complex process that requires expert knowledge and experience. Seek out the services of experienced consultants to help you navigate the process and identify the most effective countertrade mechanisms for your business.
Build long-term relationships: Establish long-term relationships with your trading partners, suppliers, and customers to ensure stable demand for your products and services and foster continued growth.
Foster joint ventures and partnerships: Work with local partners in target markets to share resources, technology, and expertise, ultimately increasing competitiveness and access to markets.
HOW WE CAN HELP YOU
ACHIEVE SIMILAR RESULTS
Our team of expert countertrade consultants can assist your company in identifying suitable countertrade mechanisms, negotiating agreements with trading partners, and guiding you through the implementation process. We leverage our extensive experience and knowledge of countertrade to help you overcome trade barriers, expand your global presence, and boost your profitability.
CASE STUDY SUMMARY
Through the implementation of various countertrade mechanisms, the Finnish forest, paper, and packaging company successfully overcame trade barriers, expanded their global presence, and significantly boosted their profits. They achieved their objectives by leveraging counter-purchase agreements, offset agreements, joint ventures, and BOT and BLT arrangements. By doing so, they were able to establish new supplier and customer bases, reduce production and transaction costs, and optimize their excess capacity and underperforming activities.
Here's What We Do Better