Enkhbat Badarch: Business ethics, accountability and diligence must be common values in international business cooperation.
Economy
Ulaanbaatar, August 28, 2023 /MONTSAME/. We spoke with Mr. Enkhbat Badarch, Executive Director of Steppe
Metal Powder (SMP) LLC, inquiring about the company’s latest business
activities.
- The first metal powder
plant in Mongolia was put into operation in the year of the 100th anniversary
of mining and heavy industry in the country. How is your business doing?
-The Steppe Metal Powder LLC introduced cutting-edge technologies
and has been operating smoothly since it was commissioned in April 2022. We
have started to cooperate with a couple of reputable companies in the European
Union and Japan. The SMP joined the European Powder Metallurgy Association in
January 2023. Of course, as any new business, we have had both success stories
and lessons learnt.
Steppe Metal Powder has received the ISO 9001:2015 quality
management system certification from France and Mongolia, which is a clear
demonstration that we have met the criteria for providing quality products and
services to our customers. We have been working hard to introduce new
energy-efficient and metal-saving product manufacturing technologies that are
emerging in the global metal processing industry. This is in order to improve
domestic metal processing and build a value chain that can compete in the
international market. We have also initiated extensive cooperation with
domestic technical colleges and technological universities, as well as South
Korean and Japanese universities and technology companies.
- Do you have any challenges as you endeavor to introduce the latest technology in Mongolia?
-Certainly, there are many challenges, most of which we have been
successfully addressing. But some a truly cumbersome, as they are not entirely
dependent on our course of action. For instance, we discovered that some
essential equipment that were supposed to be supplied by our partner from original
equipment manufacturers had not been ordered. Additionally, the overall
technical advice provided appeared to have some flaws. It is disappointing that
GGP Metal Powder AG, a German company responsible for factory design, equipment
selection and procurement, and marketing support, and its related British
company Grace Metal Powder, have misled us and repeatedly breached the
Marketing Partnership Agreement. Specifically, they failed to fulfill the sales
of 300 tons of copper metal powder as agreed. Unfortunately, this has been
going on for two or three years. Doing business, first of all, is a matter of
mutual trust, confidence and responsibility. It is about honoring the contract
and recognizing that we are accountable in front of each other, before legal
accountability. The Mongolians have always looked up at foreign companies as
investors, as carriers of the best technologies and as embodiments of business
values. However, this is not always the case, which we had experienced in our
partnership with German and British companies. We are planning to seek justice
from pertinent international authorities. In conclusion, I would like to once
again highlight that Mongolian businesses which deal with foreign partners, do
not always seek for financial support, more often, the Mongolians look for
excellence in ethics, business discipline, honoring law and commitments. We
hope to speak with you with much brighter news next time.