Enkhbat Badarch: Business ethics, accountability and diligence must be common values in international business cooperation.

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.