CCECC: localized management boosts its development

Company Profile
China Civil Engineering Construction Corporation (CCECC), the earlier Foreign Aid Department of the Ministry of Railways of China, was established in 1979 under the approval of the State Council of the People’s Republic of China and was one of the four pioneers performing international contracting and economic cooperation in China. Form 1950s to 1970s, CCECC contracted China’s largest foreign aid project--Tanzania-Zambia Railway (TAZARA).  At present, CCECC, as one of top 225 international contractors, registers a total of over 80 billion yuan contracted value, an annual revenue of 10 billion yuan and 90% overseas businesses of its total.
Challenges
Currently, Nigeria is the largest market in Africa for CCECC in terms of many infrastructure projects in roads, bridges and railways.As its businesses in Nigeria grow, CCECC faces such problems as too many construction points in too long construction lines and insufficient employees.
On the one hand, it is not suitable for CCECC to employ more Chinese employees. Hiring more Chinese employees means a higher cost and also social security problems in certain conditions. One the other hand, Nigeria suffers a serious youth unemployment. It becomes a social problem about social stability and human dignity. Meanwhile, local employees have lower education and skill levels than Chinese employees. It is a social challenge for Nigeria to increase its employment and the locals’ employability.
Solutions
CCECC now confronts with the problems of insufficient employers, unqualified local employees and many Nigerian laid-off employees. Considering all these problems, CCECC adopts the strategy of localized management in Nigeria. This strategy aims to not only hire more locals, but make CCECC a real local company.
The employee localization  
Every project of CCECC is conducted in a localized way in Nigeria. for every project quotation, CCECC requires the proportion of local employee to Chinese employees should be no less than 10:1. There is another rule in construction sites that the proportion of Nigerian employees to Chinese employees should be no less than 25:1. According to the statistics in 2013, 90% of CCECC’s employees in Nigeria were the locals.
Intensive and professional training for local employees
Training for local employees is now an important part of CCECC‘s development plan. Besides training on site, CCECC also provides intensive training for its employees in batches and different periods. To build an independent and stable team of local employees, the relevant department has formulated a training scheme in Nigerian language to improve local employees’ skills. Local senior employees will give some introduction and training on quality management for new employees.
To provide more training, CCECC established a training center in the IDU industrial area in Abuja to provide training for local employees in large numbers. The center compiled training textbooks in English and trained many professionals including senior employees, foremen, machine repairmen, operators and so on.
The company regularly sent Nigerian employees with potential to China to receive training so they could catch up with the latest technology in the industry. This enhanced their sense of identity and belonging to CCECC.
The localization of high-end labor service
To promote the localized management, CCECC hired hundreds of local college graduates and lots of high-quality locals to assume important positions in management including the head of HR, senior tax advisors, PR consultants, legal advisers and project engineers etc. In 2013, 40% of CCECC’s managerial personnel were Nigerians. They are high-quality, familiar with local custom and culture, good at local laws and regulations, and have a wider social circle. They have been an important link between CCECC and local employees.
Achievement
CCECC’s localized management in its human resources not only solved the problem of insufficient employees but produced a competitive team by providing employment opportunities and training for local employees. CCECC has become one of the largest construction giants in Nigeria. A stable and high-quality team of employees lays a solid foundation for its transformation from a constructor to an investor.
Promoting CCECC’s development
CCECC has trained a team of localized management in measurement, management, consultancy and company reports. When improving the quality of local employees, CCECC also fostered an eligible and competitive leading team that can serve CCECC for a long term. Some Nigerian employees have been working in CCECC for over 15 years.
Employing the locals reduced the labor costs for CCECC. Hiring senior managers in CCECC can increase the working efficiency and generate economic benefits. This strategy can greatly enhance CCECC’s influence and credibility in the local authorities and society.
Increasing the local employment rate
By July 2013, CCECC had hire over 20,000 locals, contributing a lot to Nigeria’s employment, social stability and economic development. CCECC continues to offer more training for local employees so that they can be more skillful and well-paid. CCECC‘s local employees have middle-and high-income, compared with others in Nigeria. The stable income improved their quality of life and happiness.
Prospects
To pursue further development, CCECC will increase its investment in Nigeria to achieve the transformation from a constructor to an investor. CCECC will improve its localized management in foreign projects and keep its advantage in human resources. CCECC, along with some junior colleges in China, will conduct some human resource projects to train professionals in railway transportation for Nigeria and to provide a strong support for its overseas operations.