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Tianjin’s Largest State-Owned Enterprise Sets up Overseas Headquarters in Hong Kong

Hong Kong has proven to be a “super-connector” for Tewoo to go global

Tewoo Group Co Ltd, which was ranked 146th in the Fortune Global 500 in 2015, is one of the largest material circulation enterprises in Mainland China. With an overseas network in 21 markets, it is also the largest state-owned enterprise in Tianjin, a metropolis in northern coastal China. In 2015, the group established Tewoo Group (HK) Ltd and acquired a 15,000 square feet office space in prime business district Wan Chai as a major move to consolidate its seven subsidiary companies in Hong Kong.

Tianjin’s Largest State-Owned Enterprise Sets up Overseas Headquarters in Hong Kong

To further develop the group’s international business, the Hong Kong office will act as the group’s investment and financing platform, according to Chu Xiangqing, Executive Director of Tewoo Group (HK) Ltd, Hong Kong.

“Hong Kong is one of the world’s largest trading economies. It is an international city with robust rule of law, financial stability and absence of exchange controls. On top of its low and simple tax system, the city’s Comprehensive Double Taxation Agreements (CDTAs) with 35 jurisdictions and tax rebate for offshore RMB businesses make it very attractive for Mainland enterprises like us,” Chu said.

The tax treaties signed between Hong Kong and other countries enabled Tewoo to manage the acquisition of some of the world’s major mining sites more cost effectively. A recent project is the acquisition of a mining site in South Africa. “Global trading through Hong Kong helps reduce the acquisition costs and increase the competitiveness of our exports,” she explained.

With more and more acquisitions completed through Hong Kong, including a copper mine in Canada and an integrated coal and electricity project in Cambodia, Chu said the company plans to employ six additional local staff to take up financial and business development responsibilities. At the moment the company has 18 local staff and 12 staff relocated from Mainland China.

Tewoo Group sees the Belt and Road Initiative an opportunity to increase its energy exports to ASEAN countries and for Mainland companies to go global as a whole.

According to Chu, InvestHK has been a long-term partner with Tewoo since 2004, when the group’s first joint venture was set up in the city. “For more than a decade, InvestHK has been contacting us, visiting our company and assisting us in the areas of business advice, publicity, talent recruitment and referral of service. We really appreciate the support from InvestHK’s Transport and Industrial team.”

Monday, July 11, 2016

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Fast Facts

  • Established in Hong Kong in 2015
  • Core business includes trading of metals, energy, minerals, chemicals, automotive and electromechanical

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