Monday, 10 November 2014

Uzbekistan Kwangshin Case Background and Status

Kwangshin Uzbekistan History, Challenges Faced and Current Status:

Technical Challenges

Kwangshin began supply in Uzbekistan starting in year 2007
First challenge was the lack of CNG station construction technical specialists in Uzbekistan. After installation there were not high-level technicians therefore operations & maintenance many challenges were faced. However, through engineer training program provided by Kwangshin, their level became higher, and supports of Kwangshin expert engineers visit at site, through many levels of education programs both in Korea and Uzbekistan.

Uzbekistan Trend of Kwangshin Products by types 

In 2007, Uzbekistan clients started with only 300 HP. Today, however, Uzbekistan is being sold wide range of Kwangshin products from 100 HP to 600 HP. Started with 300 HP only at first. Later demand and range expanded. Uzbekistan has many private companies, are sensitive to maximize financial efficiency based on dynamic NGV customers of each station, this is why “Taylor-Made” [not mass produced] is important point of Kwangshin.

Dryer Topic and Gas Water Challenges in Uzbekistan

At first Uzbekistan clients installed stations without a dryer, and water entered compressors and technical problems. Kwangshin strict R&D department requirement is to check the local gas composition breakdown with analysis and water content, and only after begin design of compressors and dryer equipment.  Kwangshin never had any problems with Dryers. Kwangshin offers “taylor made” to satisfy gas composition, prevent future technical issues. Kwangshin own dryer development R&D for period of 36 months. Kwangshin may offer Kwangshin own dryer or Canadian Zebec dryer option or other. In case of Russia, for first dryer to prove quality, can offer “one time special price offer” as demo.  
Dispenser

After 2008 Klaus dispenser was replaced with Kwangshin own dispenser. Price competitiveness, fueling time became faster by 10%. Maintenance costs spare parts become easier and lower cost. Uzbekistan clients enjoy Kwangshin dispenser unique design said by Uzbek customers, to look like “soda beverage dispenser.”

Uzbekistan Technical Challenges

From start Uzbekistan clients visited South Korea, with complaints of products from Ukraine (from service problems and quality of compressors). Daewoo GM company in Uzbekistan Uzbekistan clients had positive Korean national brand recognition of equipment quality. After testing Ukranian, Italian Chinese and Argentina technologies, they selected in the end Korean technologies; Kwangshin products were supplied and start-up and technical issues by Kwangshin dispatched engineer, spare parts supply, and fast client program was offered. Competitions: Not many compressors of competition are being sold. In October 2014, an accident in one of the countries of Europe caused 2 deaths, 2 injuries and 1 in critical condition .  Kwangshin has 47 years of safety, never explosion, history record worldwide. Competition products due to low service supports, Uzbekistan clients have lost interest for consideration.

JV Kwangshin-Uzbekneftegaz-Kolon-KOGAS

A JV was made in 2011 in order to build 60 CNG stations. Due to one party is government organization of UzbekNeftgas and one party large Korean trading company, strict Uzbek governmental and Korean corporate procedures caused construction dates continued delay. However, currently, successfully built 4 stations completed, and positively expecting by end of 2014 additional 4 stations operational,  expecting total 12 units. Private companies therefore started to purchase stations independently.  

Russian Language Challenges

Communication problems in Russian. Today, Kwangshin has Russian speaking staff, as well as many Russian-English Russian-Korean speaking representatives in Uzbekistan.

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