Case Study: Caledonian Alloys 
Caledonian Alloys provides revert management and processing services to the aerospace, land-based turbine and chemical industries. Headquartered in Livingston, the company has grown to become the world's largest specialist recycler of nickel, cobalt and titanium based superalloys with operations in the UK, the USA, France, the Czech Republic, New Zealand and China.
Caledonian's interest in the rapidly expnding Chinese market followed on from the knowledge that many of its existing aerospace customers were planning to set up manufacturing operations in the region. The company wanted to be in a position to provide its services to these customers but had little knowledge of operating in the Far East.
The company needed someone with knowledge of the country to help it to develop a strategy and facilitate entry into the marketplace and the answer came through Scottish Networks International (SNI), an initiative that matches international postgraduate students studying at Scottish universities with Scottish businesses.
SNI introduced the company to Lixin Yan, a Chinese engineer with ten years work experience who was studying for an MBA in Scotland (pictured above outside CA's facility in China). A 12-month placement was arranged for Yan to help develop a market entry strategy for Caledonian Alloys.
The placement was extended by a further 12 months allowing Yan to work on implementing the strategy. By the end of the programme Caledonian had established a wholly owned foreign subsidiary company located in Tianjin. The Tianjin facility occupies 1000 sqm and carries out initial processing of superalloy materials which are then packaged and exported to Caledonian's other locations for final processing.
Yan joined Caledonian Alloys on a permanent basis in the role of Managing Director, China. A member of the senior management team he manages Caledonian's activities in Asia from the Livingston head office while travelling regularly to the region to meet with customers and suppliers. His knowledge and experience have been a major factor in the success of Caledonian's Chinese venture. Sales of $500,000 were generated in its first year and this year turnover is expected to reach $4,000,000 this year.
Caledonian Alloys has clearly established a strong base from which to grow its Asian business and has exciting plans for its future development.
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