International Business News September 2020

McWong International Power supply solutions For the Lighting Industry

Margaret Wong, President & CEO, McWong International

McWong large indoor lighting solution for Detroit's Historic Trinity Church

Mongolian Yert.

McGowan LED drivers

Also in this issue: Explore / International News / Tips – Croatia Savino Del Bene – Your Global Solution

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McWong International Explore Croatia

Pg. 2: Savino Del Bene

Pg. 3: ToC, Letter Based on August’s encouraging news, it appears we are moving in the right direction regarding exports, imports Pg. 4 – 5: McWong International and manufacturing.

Pg. 6: McWong, continued According to the Institute of Supply Management’s (ISM) August Report On Business, economic activity in the US manufacturing sector grew in August with both Pg. 7: Croatia travel exports and imports moving up.

Pg. 8: Croatia travel cont’d, Express News This jump in trade suggests that our small to medium- sized enterprise exporters (SMEEs) are beginning to see Pg. 9: Express News continued some daylight following the devastating pandemic that swept the nation beginning in March. Pg. 10: Croatia Profile Many of you are getting leads from your website and Pg. 11: Croatia Profile cont’d, Transimpex social media endeavors and are beginning to make shipments to confirmed sales responses. Pg. 12-13: Croatia Profile continued One of the challenges remaining on the table are the tariffs imposed by the White House on steel and IBNewsmag aluminum. Many of you have switched your supply chain sourcing away from China or have been reshoring Tel 816.616.7779 Fax: 816.472.0959 your manufacturing here at home. [email protected] So, aside from adjusting your supply chain to avoid 6655 Troost Ave., tariffs and dealing with Covid-19, how do you regain Kansas City, MO 64131, USA your competitive export edge? In God we trust! One way is by sharpening your on pricing and shipping to optimize your operations. Air cargo is more PUBLISHER/EDITOR: expensive since commercial flights have dropped off. Frederick Baehner They typically account for nearly half of all air cargo.

DESIGN & PRODUCTION: Tom Gilland Another way is that of rehiring those experienced www.GillandGraphx.com people who are crucial to your manufacturing. I know SENIOR EDITOR: Doris Ganser many of you have been able to retain your critical workers through this crisis, and to that I applaud you. CONTRIBUTING WRITER: Paul Mastilak It takes sincere leadership to move forward, and you TRAVEL WRITER: Lisa Osborne Blalock are in the driver’s seat. ADVERTISING DIRECTOR: Tom Renich Frederick Baehner page 4 September 2020

One of McWong’s manufacturing facilities in China

East meets West as McWong continues to field its many power supply solutions for the lighting industry in the US

When you think of international trade and main- she saw the opportunity to manufacture electrical taining sales during this pandemic, you must products – primarily power supply, extension and consider they may relate to both importing and other cords – and to sell them to US companies. exporting. “My Journey is all about perseverance, hardwork- McWong’s International Headquarters in Sacra- ing and willingness to take risk. One of the key mento, California is a good example. With multiple success elements is execution and move fast to US warehouse facilities and two factories in China, make things happen regardless. Delay[s] and not this company continues to import power solutions, making decisions normally generate negative LED drivers and many other products for US light- energy and reduce [your] chance of success,” she ing companies and exports some of its products to said in a recent interview. Canada and Mexico. Ms. Wong says that they were the very first Chinese Margaret Wong originally hails from Hong Kong and manufacturer to obtain a UL listing. Their first UL- runs this far-flung company that has successfully listed products began with electrical ballasts for bridged the two continents for 35 years. Back then, fluorescent lighting.

IBNewsmag TM September 2020 page 5

“We began seeing rising labor costs, an unfavor- able currency exchange, and tariff increases from a former 5-7 % to a current 15-20 % as storms were heading our way,” said Ms Wong, “followed by the tsunami of the Covid-19 pandemic. All this has been cutting into our sales these past two years.”

“Having said that,” she pointed out, “it’s been our product efficacies, just in time deliveries, and superior customer service that has supported and maintained our sales.”

McWong recently teamed with project partners Contemporary Energy Solutions, Pentalux, and Silvair to deploy a large McWong TruBlu control network at Yamaha Motors’ midwestern distribu- tion center located in Pleasant Prairie, Wisconsin. Senior Project manager, Jesse Huang at the Sacramento The SIG-qualified TruBlu mesh control network con- warehouse inspecting product. sists of 320 nodes and 40 control zones encompass- ing the 175,000 sq. ft. facility; the resulting estimat- McWong now maintains close to 300 SKUs of its ed energy savings exceed 250,000 kWh annually. power supplies for lighting. At this point, McWong is doing well with its expand- Her product line includes IOT lighting products, ing lines, including lighting ballasts, LED drivers, LED Power, Protection LED Wall, Legacy and several displays, IOT sensors & controls, blue tooth mesh other product lines. It has been this expanding lighting solutions plus a new, in-demand, UV-C light- line of multi-product power supplies that has kept McWong ahead of the increasing wave of competi- McWong, continued on page 6 tion emanating from China.

McWong employees working on lighting power supplies. pagepage 66 SeptemberJuly 2017 2020

McWong, continued from page 5 ing product in the battle against the Corona virus. UV-C lighting, which has the shortest wavelength and the highest energy and can act as a Corona virus disinfectant means.

The company primarily sells directly to its OEM customers and employs sales reps for additional sales. “For the most part, our customers come to us because of our superior products,” she concluded.

McWong employs a total of about 1,000 people in both its China and US facilities. Find out more about McWong and its products at www.mcwonginc.com.

Ms. Wong with California Governor Gavin Newsom at a California China Trade function.

Senior Electronics Engineer Darren Musgrave working on a LED driver September 2020 page 7

Explore Croatia – available Museum of Broken Relationships, the Stone Gate, Lotrscak Tower and St. Marc’s church are not to to American travelers be missed. It’s also important to explore the areas farmers markets and cafes, and to take a peek For many, the closed borders between countries at the gracious government buildings within this due to COVID-19 mean canceled vacations and capital city. a loss of optimism for travel in the near future. Though foreign vacation options are limited, Cavtat - This lesser known city is only a short Croatia reopened for American tourists earlier this boat ride away from , and lies along summer (with certain restrictions) and is proud to Croatia’s southern coast. Palm trees and cobble- showcase its many sites to all who choose to visit. stone paths line the shore and perfectly frame the In terms of safety, Forbes listed , Cavtat, and deep blue water of the Adriatic Sea. Foodies can Rijeka among the 20 safest European destinations enjoy breathtaking views of the sea while pamper- for travel during this pandemic. ing their taste buds with a fantastic meal at one of several splendid restaurants. Bugenvila is one “Croatia has been glorious - it’s so beautiful and of the most famous for both its view, and its - I want to go back as often as I can.” cious steak with truffle foam. One of the country’s - Emilia Clarke (actress) eeriest attractions is located near this city. Visit an abandoned military resort with dilapidated hotel Most flights into Croatia from the USA will arrive buildings and remnants of their war ending in the in Dubrovnik or Zagreb, the capital. Once there, early 90’s. These abandoned hotels of Kupari are a the best way to see Croatia is by car. Rental cars must-see. are generally inexpensive and road conditions are good. Since the country is somewhat smaller than Pula - This city, strategically located at the tip of the state of Florida, domestic travel is quick and the Adriatic coast, is a perfect stopping point for simple. The following sites and activities, scattered lovers of Roman history. In 177 BC, the Romans throughout Croatia, are highly recommended. conquered the Istria peninsula and made it a capital city. The highlight for tourists here is vis- Dubrovnik - A trip to Croatia wouldn’t be iting one of the six largest and best preserved complete without a visit to its most glamorous city. Roman stadiums. The Pula Amphitheatre was built The city’s Old Town district, located within mighty between 27 BC and 68 AD and is still used today, medieval defensive walls, is a UNESCO World seating up to 20,000 spectators. While visiting Heritage site. A 1.5 mile walk around the perim- Pula, stop by the Temple of Augustus and the Arch eter will provide for viewing of fortresses, canons of the Sergii. and towers. The Pile Gate, built in 1537, provides sweeping views of Old Town and the magnificent Adriatic. Another adrenaline-pumping option for aerial views would be a ride on the popular Du- Pula Amphitheatre brovnik cable car. Fort Lovrijenac, Dubrovnik Cathedral and the interesting monuments and old buildings located within the Square of the Loggia are among other good choices to round out the day.

Zagreb - The city’s main sightseeing area is Gornji Grad (Medieval Upper Town). While the city is easily walkable, it still offers visitors great options of things to see and do. For some photos of Zagreb, make way to the 360-degree observation deck. This aerial adventure along with the quirky Explore Croatia, continued on page 8 page 8 September 2020

Explore Croatia, continued from page 7 to life in your head. In season, the lavender fields of Velo Grablje are a stunning site and Hula Hula Diocletian’s Palace Beach Club is always the place to be for exciting nightlife.

Split - Diocletian’s Palacetakes up nearly half of the old city. While it was built as a palace in the 4th century BC, the monstrosity more closely re- sembles a fortress, due to its size. Roman ruins can be found around the city and the local bank even showcases an original Roman column. For views of the city and nearby islands, the top of the Cathe- dral of St. Domnius is the place to be.

Brac - Home to the world famous Zlatni Rat In addition to this list of Croatia’s important sites, beach, this island is also known for its food and the National Parks of Plitvice Lakes, Krka, Mljet and wine. A relaxing day on this fine pebble beach can Risnjak are all worth a visit! include a variety of watersports. By Lisa Osborne Blalock Footloose Travel & Tours Hvar - Those looking for exciting nightlife should [email protected] head to this island fortress town. As one of the oldest settlements in Croatia (384 BC), learn about their history in the Stari Grad Museum and visit the St. Franciscan Monastery to bring that history

Express News from Around the World Manila Times Tech, Pfizer and Novavax if their vaccines prove viable. • The value of the money sent home by overseas Fili- pino workers (OFWS) bounced back in June, rising to • Japan forecasts that its economy will contract by its highest level in 5 months. 4.5% in fiscal 2020.

• A terrorist bomb-maker from Pakistan was arrested The Korea Times in Palawan Province. Authorities are investigating his The US is conducting anti-dumping/countervailing possible involvement with local terrorists. duties probe of imported steel pipes. Vallourec, a Texas based steelmaker, requested a review of products im- Asahi Shimbun ported from South Korea, Russia, Ukraine and the Czech • Japan`s jobless rate was 2.8% in June. However, a Republic. Pipes are used in chemical plants, nuclear rising number of people are dropping out of the jobs power plants, airplanes and vehicles. race. In addition, 2.4 million furloughed workers are kept on payrolls backed by state subsidies, which the Straits Times government is seeking to extend beyond its end of Six Singapore companies are featured in Forbes September expiration. Magazine`s listing of top 200 small and medium-sized companies: • Paper companies in Japan are developing paper • SGX- investment holding company substitutes for plastic containers like shampoo bottles, body soap containers, etc. • AEM Holdings - designer and manufacturer of semi- conductor test handlers • The Japanese government made arrangements with the Covid-19 vaccine producers- Astra-Zeneca, BioN • Eggriculture Foods - eggs and egg products

IBNewsmag TM September 2020 page 9

• Khoon Group - engineering Reuters Mexico would like to revoke a 100-year-old concession • Union Gas - petroleum products to a unit of Hong Kong`s CK Hutchinson Holdings Ltd. to run the port of Veracruz. • Snack Empire - food and beverages Gulf News Bangkok Post • Dubai to relaunch cruise ship services before year • The Thai government forecast is that the economy end. will contract by 7.3-7.8% this year. Previous estimate predicted a contraction of 5-6%. • Norway`s Sovereign Wealth Fund, the world`s largest, lost $21B in first half of the year. • The Thai government and energy officials are promot- ing a plan to make Thailand a hub of electrical vehicle Jerusalem Post manufacturing. This program, if successful, would The Sudanese Foreign Ministry states they are looking negatively affect 850,000 workers currently employed forward to a peace agreement with Israel. in combustion engine automobile factories. Santiago Times Buenos Aires Times • Chile and Ecuador signed a free trade agreement. • Anti-government demonstrators took to the streets in cities across Argentina to protest the Covid-19 lock- • The Latin America death toll from Covid-19 now down extension and proposed judicial reform bill. exceeds that of North America.

• After 146 days in lockdown, Argentina`s virus prob- CentralAmericaData lems only worsened. In Central America, more than 800,000 people are looking online to buy items to decorate a house or • Bond traders are already betting on Argentina`s next apartment, and of this group of consumers, approxi- default. mately 12% explore options to purchase lamps and their accessories. • Mauricio Claver-Carone, President Trump`s candi- date to head the Inter-American Development Bank Material Handling & Logistics claims he has the backing of majority of Latin Ameri- This global business disruption looks set to continue for can countries and accuses Argentina of trying to ‘ob- some time, with 46% of businesses stating that it will struct’ his election. take 12 months or more before supply chains return to pre-Covid levels of productivity. pagepage 1010 SeptemberJuly 2017 2020

PROFILE: Croatia A Few Practical Tips for Doing Business in Croatia

Location • Letters should be addressed to the company Southeastern Europe on the Adriatic Sea between rather than a specific person. Bosnia, Herzegovina and Slovenia. It borders Slo- • Language & Culture: Croatia is a multilingual/ venia to the northwest, Hungary to the north- multiethnic/multicultural country. The prevalent east, Serbia to the east, Bosnia and Herzegovina, language is Croatian, a Slavic language written and Montenegro to the southeast, sharing a mari- in the Latin alphabet. 78% (2011) speak at least time border with Italy. one foreign language, the majority of those with a higher education speak English (2011). History • Punctuality is very important. • 1867 - Part of newly formed Austro-Hungarian • Do not schedule meetings on Friday afternoons Empire. since many Croatians head to their country cot- • 1918 - The Croats, Serbs and Slovenes formed a tages after lunch that day. kingdom known as Yugoslavia. • Dress code is suit and tie for men and a conser- • 1945- Yugoslavia became a federal independent vative dress or blouse and skirt for women. communist state under the leadership of • Greetings should be with firm handshake and Marshal Josip Broz. (aka Tito) direct eye contact. (Pre-Covid-19) • 1991 - Croats declared their independence from • Always maintain eye contact when speaking. Yugoslavia. • Remain standing until you are invited to sit • 1998 - After several years of fighting, Croatia down as there might be a seat reserved espe- became independent. cially for you. • 2009 - Joined NATO. • Small talk before getting down to business. • 2013 - Joined the EU. • Decision-making is generally done by the chief executive. Size • Small gifts like a book or souvenir representing • Slightly smaller than West Virginia. your country is acceptable. • Population Distribution: Most of the population • Bribery is common. lives in the north. • Quarter of population resides in and around Zagreb. Many of its islands are sparsely popu- lated. September 2020 page 11

• Population: 4.2M (July, 2020 est.) • GDP: $60.97B (2018) • Population Growth Rate: 0.5% (2020 est.) • GDP Growth Rate: 2.9% (2019) • Literacy Rate: 99.3% • Unemployment Rate: 6.95% (2019) • Government Type: Parliamentary republic • Exchange Rate: 1US Dollar = 6.59 • Capital City: Zagreb (7/18/20) • Labor Force: 1.790 M (2019) Labor Force Economy Makeup: 1.9% - Agriculture, 27.3 - Industry, Croatia is a small and complex market but plays 70.8% - Services (2019) Major Industries: an important role in the economic and political tourism, chemicals, plastics, machine tools, fab- stability of Southeast Europe. After the collapse of ricated metals, electronics, iron and steel prod- socialism, Croatia went through a process of tran- ucts, aluminum, paper, wood products, con- sition to a market-based economy in the 1990s, struction materials, textiles, agriculture (vegeta- but its economy suffered badly during the Croatia bles, fruits and livestock), shipbuilding, petro- War of Independence. The economy is fragile. The leum refining, food and beverages. government is accelerating the privatization of non- strategic assets. International Trade Total Exports: $17.4B (2019) Tourism is a very important part of the economy Major Exports (2019) (20% of GDP). It is also working to become a re- • Fuels including oil - 9.5% gional energy hub. In that regard, the country is • Machinery including computers - 8.3% building a floating LNG regasification terminal to import LNG for re-distribution in SE Europe. Croatia • Electrical machinery/equipment - 8.3% is projected to adopt the EURO in 2024. Croatia, continued on page 12

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Croatia, continued from page 11 • Nacional- general news - www.nacional.hr (Croatian and English) • Pharmaceuticals - 7.8% • Vehicles - 5.6% Sampling of Croatian Companies • Wood - 5.3% • - conglomerate (tourism, hotels, • Clothing - 3.3% food, etc. - www.adris.hr - Rovinj • Articles of iron and steel - 3.3% • d.d. - food products & dietary • Aluminum - 3.1% supplements - www.atlantic.hr/en - Zagreb • Plastics, plastic articles - 3% • Zagreb Brewery- beer - www.uzujsko.com - Zagreb Major Export Partners (2019) • Badel 1862 - liquor & wine - • Italy - 13.8% www.badel1862.hr - Zagreb • Germany - 12.9% • - sugar refinery - http://www.secerana.hr - • Slovenia - 10.5% Virovitica • Bosnia & Herzegovina - 10.1% • BioGnost – pharmaceuticals - www.biognost.com - Zagreb • Austria - 5.8% • Vindija - dairy products and beverages - • Serbia - 5.3% www.vindija.hr - Varazdin Total Imports: $28.2B (2019) • Brodosplit - ships, engines, diesel engines - www.brodosplit.hr - Split Major Imports (2019) • - civil engineering (bridges, tunnels, • Mineral fuels, mineral oils etc. - 12.1% roads) - www.viadukt.hr - Zagreb • Nuclear reactors, boilers, machinery and • Cakovecki mlinovi - wheat flour, pumpkin seed mechanical appliances, parts thereof - 9.8% oil, baked goods - www.cak-mlinovi.hr - Cakovec • Vehicles - 8.67% • TOZ Penkala - writing implements, art materials, • Electrical machinery/equipment - 7.5% - www.toz-penkala.hr - Zagreb • Pharmaceuticals - 5.03% • Cedevita - soft drinks and mixes - • Iron & steel products - 2.8% www.cedevita.hr - Zagreb • Apparel & clothing - 2.72% • Sljeme - trunks, fine leather products, pet acc- • Iron & steel - 2.32% essories - www.sljemeautokoffer.com - Zagreb • Furniture, bedding etc. - 2.16% • Croteam - video games - www.croteam.com - Zagreb Major Import Partners (2019) • - civil engineering - www.tehnika.hr - • Germany - 15.4% Zagreb • Italy - 13.8% • - electric & civil engineering - • Slovenia - 11.5% www.dalekovod.hr - Zagreb • Hungary - 8.44% • RIZ- transmitters, antennas, meters - • Austria - 6.45% www.riz.hr - Zagreb • Netherlands - 3.99% • Digitron – electronics - www.digitron.hr – Buje • Poland - 3.8% • Rimac - electric sports cars, drivetrains and battery systems etc. - www.rimac-autobili.com/en • China - 2.87% - Sveta Nedeja • Bosnia & Herzegovina - 2.79% • DOK-ING - electric vehicles, unmanned multi- • France - 2.72% purpose vehicles and robotic systems - www.dok-ing.hr - Zagreb English Language News Sites • - very large foodstuffs producer - • Total Croatia News - general news - www.podravka.hr - Koprivnica www.total-croatia-news.com • Duro Dakovic - boilers, railway vehicles, bridges, • Croatia Business Report - business news – cranes, industrial structures, armored vehicles - www.croatiabusinessreport.wordpress.com www.duro-dakovic.com - Slavonski Brod • The Dubrovnik Times - general news - • Pliva – pharmaceuticals - www.pliva.com - www.thedubrovniktimes.com Zagreb September 2020 page 13

• Fortenova Group - large conglomerate-mineral Public Holidays water, ice cream, edible oils, margarine, mayon- • January 1 - New Year’s Day naise etc. - www.fortenovagroup.hr - Zagreb • January 6 - Epiphany • Pivovara Licanka - beer- www.pivovara-licanka.hr - Gospic • April 12 - Easter Sunday • Geofoto - photogrammetry, geographic inform- • April 13 - Easter Monday ation systems - www.geofoto.hr - Zagreb • May 1 - Labor Day • - fertilizers - • May 30 - Statehood Day www.petrokemija.hr - Kutina • June 11 - Corpus Christi • HS Product - pistols, assault rifles, grenade • June 22 - Anti-Fascist Day launchers - www.hs-produkt.hr - Ozalj • August 5 - Victory and Homeland Thanksgiving Day • Kras - confectionery products - www.kras.hr - • August 15 – Thanksgiving Day Zagreb • November 1 - Assumption Day • Dalmont - shipyard (Kraljevica Shipyard) - • November 18 - All Saints Day Remembrance Day www.dalmont.hr/en - Kraljevica • December 25 - Christmas Note: oldest continuously operating shipyard in the world - est. 1729 • December 26 - St. Stephen`s Day

• IN2 – software - www.in2.eu - Zagreb By Paul Mastilak • Institut IGH - civil engineering - www.igh.hr - InterMark3, Inc Zagreb • INA d.d. - oil & gas exploration & production - www.ina.hr – Zagreb • Iskon Internet - internet provider, fixed line tele- phone and IPTV access - www.iskon.hr - Zagreb

View of main square in Zagreb, Croatia

International Business News