Reed Exhibitions, Chinese Firm Partner

By Gary Tufel -- Tradeshow Week, 9/19/2005

Reed Exhibitions and the state-owned China Natl. Pharmaceutical Group (also known as Sinopharm) have entered into a joint venture. Reed has bought a 50-percent stake in the Sinopharm subsidiary that produces tradeshows, called China Pharmaceutical Exhibition (CPEC). The resulting joint venture will be called Reed Sinopharm Exhibitions.

Details of the transaction were not released. Sinopharm reported 2004 revenue of $2.2 billion and CPEC reported revenues of $20 million, according to May Chen, senior account executive for Ketchum Newscan Beijing. Reed Sinopharm Exhibitions' board will be made up of both Reed and Sinopharm officials, Chen said.

CPEC already produces 11 exhibitions each year in the pharmaceutical and medical equipment sectors in China, including China Natl. Medical Equipment Fair — CMEF, a semiannual exhibition for medical device manufacturers held in Shenzhen, and China New Drugs Fair, for drugs recently brought to market, in Nanjing.

Chen said that although these shows already have a large number of international exhibitors with operations in China — such as Siemens and Johnson & Johnson — Sinopharm is hoping Reed Exhibitions can expand the international reach even further. The current CPEC staff will continue working with existing brands; Reed Exhibitions will help with launching new shows and marketing on a global basis.

Mike Rusbridge, chairman and CEO of Reed Exhibitions, said the joint venture makes sense because, over the last three or four years, there has been some relaxation in the way that Chinese state-owned enterprises are able to operate. He noted that Reed already has three joint ventures in China and operates its own offices in Beijing, Shanghai and Hong Kong.

"Our business runs across various industries, such as electronics, manufacturing, packaging, logistics and tourism, with shows either in partnership with others or wholly owned," Rusbridge said. "Where possible, Reed pursues partnership opportunities with local players to further strengthen our capability. Our JV agreement with Sinopharm for the pharmaceutical industry is an example of this strategy."

He added that Reed is actively looking for other new partners in China and in other growth regions in the world.

"In fact, it is one of the best ways forward for our business," Rusbridge said. "We are careful in choosing the right partners and will have our best senior executives working on possible new partnerships. Through expanding the current partnerships and exploring future co-operations, I believe Reed Exhibitions will benefit from the accumulated resources and knowledge of our partners in their respective industries."

Reed Exhibitions has organized events in China for over 20 years, with its first representative office set up in Beijing in 1995. Its current portfolio includes 16 exhibitions in China.