BioMicrobicsWorking Hard to Regain International Salesin Far-Flung Countries

International Business NewsAugust 2020

Also in this issue:Explore Sweden / International News / Tips – Sweden

Robert Rebori, BioMicrobics President & CEO

BioMicrobics Wastewater Treatment System in stalled in Mongolia

Mongolian Yert.

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Pg. 2: Savino Del Bene

Pg. 3: ToC, Letter

Pg. 4 – 6: BioMicrobics

Pg. 7: Sweden Travel

Pg. 8: Sweden Travel cont’d, Express News

Pg. 9: Sweden Profile

Pg. 10: Sweden Profile, Transimpex

Pg. 12: Sweden Profile, continued

BioMicrobicsSweden

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Just when we believe our economy has weathered the worst of the Covid-19 virus, we’re seeing new restrictions in various places. Looking ahead to the next few months, how is this affecting global GDP and trade?

The Organization for Economic Cooperation and Development (OECD) reports that “the worldwide economy is projected to shrink by 11.3% in 2020, should a second pandemic outbreak hit at the end of 2020 (the double-hit scenario). Assuming a single wave of the pandemic (the single-hit scenario), GDP is expected to decline by 9.4% in 2020, with a rebound of 6.3% in 2021.”

Closer to home, Dr. Ernie Goss, Creighton University economist and frequent contributor to IBNewsmag, offered the following outlook for the US.

“We expect second quarter GDP to decline by almost 40 percent - annualized (actual drop was 32.9%). This large drop is driven by a fall in consumer spending of nearly 50%, a drop in real capital spending of just over 20% and a fall in exports of more than 35%. Following a large rebound of over 30 percent in Q3, we expect slower growth in Q4 that will bring December 2020 economic output to about 95% of what it was a year earlier”.

Not exactly a rosy outlook, but as far as international trade is concerned, more positive steps actually exist as described in our feature article on BioMicrobics beginning on page 4 of this edition.

BioMicrobics has aggressively used all forms of social media, along with Zoom, webinars, WhatsApp and other forms of remote communications to keep inquiries alive and continue training distributors.

As one famous novelist has his protagonist say, “Hope for the best and prepare for the worst.”

Frederick Baehner

page 3August 2020

BioMicrobics pushes hard with product development and extensive sales communications to regain international salesOne of the best things about this small internation-al manufacturer is its sustainability initiatives and forward thinking as the pandemic shortstops many exporters.

BioMicrobics manufactures and sold more than 80,000 water, wastewater and storm water systems to over 80 countries through its global distributor network.

Sure, the company saw a noticeable drop-off in export shipments as the world went into lockdown.

“Despite this lag in exports, we’ve received many in-quiries for projects in other countries that will likely ship later this year and into early next year,” said Robert Rebori, BioMicrobics President and CEO.

Robert Rebori at tradeshow in Bhutan

IBNewsmagTM

August 2020page 4

According to Mr. Rebori, April sales were down 30%, May sales were down 25%, and then June sales jumped up 25% compared to the same time last year. He acknowledged that the June increase came largely from pent-up domestic sales that would nor-mally occur during the previous months.

The key question is, how have they managed to push ahead as much of international business has ground to a halt?

“For one thing, we maintained our pricing and sales programs without having to discount,” he explained. Secondly, we made good use of social media, WhatsApp, Zoom and even webinars to keep our 120 worldwide distributors trained and informed. We stayed with the basics and resumed shipping of large-scale water treatment systems for communities and commercial entities in need of reliable water treatment.”

To leverage an opportunity regarding the Covid-19, the BioMicrobics marine subsidiary, Scienco/Fast, offers a disinfection system which generates hy-pochlorous acid from salt water and electricity to combat many pathogens including bacteria, bacte-rial spores, viruses and fungi up to 99.9% of every pathogen. Covid-19 is among the pathogens it will destroy.

Hypochlorous acid is a non-toxic, eco-friendly no-rinse solution that is no more corrosive than demin-eralized water.

“We also developed and certified a new membrane (MBR) treatment system needed for higher levels of wastewater treatment, most recently installed in hospitals, truck stops, and even marine applica-tions to provide ultrafiltration for water re-use,” Mr. Rebori pointed out. This system may be destined to become a mainstay for cruise ships once they rebound.

They are among the new products being developed by BioMicrobics as it becomes more diverse in its product offering to help restore sales.

Because the company’s systems have few moving parts, they tend to last for long-term performance, thus essentially negating the demand for spare parts.

Reza Shams(c) PhD, Sr. V.P. of Advance Process Engineering, BioMicrobics, training the property maintenance staff during BioBarrier Winery installation. This California winery wastewater installation won the Industrial Water & Wastes Digest (iWWD) “Project of the Year.”

BioMicrobics, continued on page 6 International Business News

page 5August 2020

foreign buyers to purchase from international com-petitors at lower costs.

The company’s Kansas headquarters facility is a 120,000 square foot “Water Campus”. Its Missouri “maritime” facility has 18,500 square feet complete with a weld shop, and in Maine it has 7,700 square feet – all with ample outdoor storage as well.

For more information about the company, go to www.biomicrobics.com

“The only exception to this is that we recently re-ceived an order from one of our maritime customers to replace a ship wastewater system blower which they originally purchased in 1975,” he explained.

Before international travel became untenable, Mr. Rebori traveled to far-flung counties such as Mongo-lia and Bhutan. “Just getting to Bhutan was a 35-hour challenge,” he noted. “I had to get to Singapore first with an overnight stay in order to catch a Drukair airline to Daro, then drive to Thimphu to meet with a distributor and exhibit at a trade show there.”

“When international travel was allowed, we lever-aged usage of Missouri and Kansas programs that support exporting opportunities with as STEP and grant money,” Mr. Rebori said. “We also used Mis-souri economic development funds and worked with the EXIM Bank to insure our export receivables”

Recently Mr. Rebori sat in on a small EXIM round-table moderated by EXIM Chair, Kimberly Reed.

“I put forth several proposals to help make EXIM funding more accessible,” he continued. “The most promising was to level out its interest rates on fi-nancing.” Typically, EXIM extends something like a 4% rate to countries such as France, but for coun-tries such as Kenya the rate jumps to 10-14%. I sug-gested that our exporters be allowed to finance re-ceivables through local US banks and cap the rate at something like 4%. This would remove the lure of

BioMicrobics Building Campus

BioMicrobics, continued from page 5

July 2017page 6 August 2020page 6

on the rocks or a warm meal in a cute restaurant on the water and get a feel for island life.

3. Experience Fika, a Swedish tradition which es-sentially means to take a break during the day to socialize and enjoy a coffee and pastry. There is no shortage of coffee shops, cafes and bakeries to choose from. For a bit of history, try fika at the popular Vete-Katten. This Stockholm institution was founded by one of the first female Swedish entrepreneurs in 1928. Kanelbullar is probably the most iconic of fika recipes and is essentially a cinnamon roll made with spiced dough and, unlike the American variety, sprinkled with decorative sugar instead of frosting.

4. The Royal Palace is located in Gamla Stan, Stockholm’s old town island filled with cobble-stone streets and medieval architecture. This palace is the official residence of the Swedish royal family, and ranks as one of the largest in Europe. The Baroque-style building houses several museums, including the armory and the treasury. While there, take a tour through Gamla Stan’s medieval alleyways.

5. Drottningholm Palace is where the Swedish royal family actually lives. This UNESCO World Heritage Site is representative of typical European architecture from the 1600’s.

6. The Abba museum offers an abundance of memorabil-ia and fun, hands-on experi-ences.

7. A visit to Skansen, the world’s oldest open-air museum, is a fun, yet edu-cational treat which brings Sweden’s history to life.

While Stockholm showcases many man-made wonders, don’t leave without experiencing some of the natural ones outside the city, as well. With 97% of Sweden’s land being uninhabited, this trip outside the city will offer endless landscapes to explore, space to relax, and an opportunity to dream. Close to 30,000 islands lie in Sweden’s remarkable archipelago, some occupied and most uninhabited.

Sweden is a beautiful country full of wonders, both man-made and natural. A country known for its abundance of castles and palaces. From the capital of Stockholm to Kiruna, Sweden’s northernmost town which borders both Finland and Norway, and the thousands of scenic square miles in between, a visit to this Baltic beauty offers much to see and do.

Stockholm consists of 14 islands and offers an abundance of culture, history, fantastic restaurants - and fun. While other Swedish cities and towns have much to offer everyone, a visit to Stockholm is essential for first-timers. In a city so filled to the brim with life and activity as Stockholm, the follow-ing are must-sees for visitors.

1. The first must-see site in Stockholm is the Vasa Museum. This attraction houses the famous Vasa battleship, which sank in the harbor during its 1628 maiden voyage. The museum was able to ac-curately recreate the ship and bring it back to life, a living testament to life at sea in the 17th century.

2. Archipelago Cruise. Close to 30,000 islands lie in Sweden’s remarkable archipelago, some oc-cupied and most uninhabited. Choose from many options to get out on the clear blue waters of Lake Mälaren and the Baltic Sea. There is a wide selec-tion of boat tours to one or more of these islands. A quick and easy option from the center of Stock-holm would be a 30-minute boat ride to Fjäderhol-marna. This adorable little island takes about 30 minutes to walk the full perimeter. Enjoy a picnic

Sweden offers so much to see and do

Sweden Travel, continued on page 8

page 7August 2020

The Korea TimesUK`s ban on Huawei equipment could boost Samsung 5G.

Straits Times• Singapore non-oil exports jump 16.1% in June.

• British Airways retires entire fleet of Boeing 747`s due to coronavirus.

Bangkok PostThailand will lift ban on international flights on July 22 under certain conditions.

Gulf NewsPakistan reports new oil and gas deposits.

Jerusalem PostBoeing has invested US$ 1 billion in Israeli`s aerospace sector in the past 3 years.

Manila Times• According to Capital Economics, a London based consulting firm, the Philippine economy will shrink by 8% in 2020.• The United Broilers and Raisers Association and Phil-ippine Chamber of Agriculture and Food Inc. (Pcafi) are urging the government to get away from its “strong” import policy that has hurt Filipino chicken sales.

Asahi Shimbun• Japan bankruptcies rise for 1st time in 11 years.

• Sinopharm (China) begins late stage trial of Covid-19 vaccine in Abu Dhabi.

• The New York Times will move part of its Hong Kong office to Seoul.

Asia Today InternationalAs Chinese officials step up their rhetoric towards re-ducing USD reliance, some positive developments can be detected in the international use of RMB.

Express News from Around the World

1. If wild camping sounds appealing, Sweden’s liberal “Everyman’s Right” law allows the opportu-nity to camp for one night in almost any location, including private property. It would be difficult to beat the available opportunities to find content-ment and calmness offered in Sweden.

2. See the Northern Lights. The best months for prime sightings are in the winter, when Northern Sweden barely sees the light of day. There isn’t a best time or location up north to witness the phe-nomena. Since daily environmental factors play a part in whether or not the lights are visible, check-ing off this bucket-list item can be a worthwhile challenge.

3. During winter months, stay in the Ice Hotel. Located up north in Jukkasiärvi, it’s built almost entirely with ice and is reconstructed annu-ally. While experiencing a night, or more, in this unique hotel, explore the enchanting scenery on a dogsled or snowmobile.

Sweden Travel, continued from page 7

By Lisa Osborne BlalockFootloose Travel & Tourslisa@footloosetravelandtours.com

IBNewsmagTM

August 2020page 8

BUSINESS• Show up on time.• Swedes are not over gregarious, so don`t inter- pret a terse response as a bad sign.• Using first names is good.• Swedes value their personal space so do not sit next to, or close by someone, if there is other space available.• Avoid any type of boasting.• If you are in a meeting and your phone rings, do not answer it.• Business casual is usual dress code.• Summer vacation (holiday) is especially import- ant. They normally take 3 weeks, primarily in July.• Many decisions are made by lower ranking personnel.• Women in business are always equal.• Sit on right side of host at dinner unless places are assigned by the host.• Swedish coffee breaks (fikas) are a large part of business culture.

OVERVIEWLocationIn northern Europe bordering on the Baltic Sea, Gulf of Bothnia, Kattegat and Skagerrak, between Finland and Norway.

BackgroundSweden was a military power in 17th century. It has not participated in a war in 2 centuries. Joined the EU in 1995 but the public rejected the intro-duction of the EURO in a 2003 referendum. Share of immigrant population increased from 11.3% in 2000 to 19.1% in 2018. Major immigration has come from India, Afghanistan, Syria, Iraq, Poland and countries which were previously part of the former Yugoslavia.

• Size: Slightly larger than California• Population Distribution: Most of the population is in the south where the climate is milder and closer to mainland Europe. Population centers are also found in the east along the Baltic coast. Interior areas remain sparsely populated.• Population: 10.2M (July, 2020 est.)• Population Growth Rate: 0.79% (2020 est.)• Literacy Rate: 99%• Government Type: Parliamentary constitutional monarchy• Capital City: Stockholm

ECONOMYThe economy of Sweden is a developed export-oriented economy aided by timber, hydropower, and iron ore. These constitute the resource base of an economy oriented toward foreign trade. The main industries include motor vehicles, telecom-munications, pharmaceuticals, industrial machines,

Sweden, continued on page 10

PROFILE: SwedenA Few Practical Tips for Doing Business in Sweden

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Sweden, continued from page 9

precision equipment, chemical goods, home goods and appliances, forestry, iron, and steel. Traditionally a modern agricultural economy that employed over half the domestic workforce, today Sweden further develops engineering, mine, steel, and pulp industries that are competitive internationally.

• GDP: $575B (2019)• GDP Growth Rate: 2.23% (2018)• Unemployment Rate: 6.48% (2019)• Exchange Rate: 1 US Dollar = 9.06 Swedish Krona (July 15,2020) Labor Force: 5.45M (2019) Labor Force Makeup – Agriculture - 2% Indus- try -12%, Services - 86% (2014 est.)

Major IndustriesIron and steel, precision equipment bearings, radio & telephone parts, armaments, wood pulp and paper products, processed foods, motor vehicles

INTERNATIONAL TRADETotal Exports: $160.52B (2019)

• Major Exports: Machinery - 26%, vehicles - 14.9%, electrical machinery/equipment - 8.9%, mineral fuels, including oil - 6.8%, pharmaceuti- cals - 6.4%, plastics, plastic articles - 5.55, fish - 2.7%, optical, technical, medical apparatus - 2.6% (2019)• Major Export Partners: Norway - 10.6%, Germany - 10.3%, US - 7.6%, Denmark - 6.9%, Finland - 6.9%, UK- 5.3%, Neth- erlands - 5.2%, China - 4.7%, France - 4.0%, Belgium - 3.9% (2019)

Total Imports: $158.7B (2019)• Major Imports: machinery including comput- ers - 13.4, electrical machinery, equipment - 12.1%, vehicles - 11.8%, mineral fuels including oil - 10.5%, plastics, plastic articles - 3.6%, phar- maceuticals - 3.1%, fish - 3.1%, iron, steel - 2.9%, optical, technical, medical equipment - 2.7%, articles of iron and steel - 2.5% (2019)

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• Major Import Partners: Norway - 10.6%, Germany - 10.3%, US - 7.6%, Finland - 7.0%, Denmark - 6.9%, UK - 5.3%, China - 4.7%, France - 4%, Belgium - 3.9%, Poland - 3.2% (2019)

SAMPLING OF NEWS SITES• The Local - general news - www.thelocal.se• Norstjernan - general news - www.nordstjernan.com• Sweden News.Net - general news - www.swedennews.net• Aftonbladet - general news - www.aftonbladet.se (In Swedish and English)

SAMPLING OF SWEDISH COMPANIES• 3H Biomedical- biotechnology - www.3hbiomedical.com - Uppsala• Volvo- commercial vehicles, autos and trucks - www.volvogroup.com - Gothenburg• Atlas Copco - diversified manufacturer e.g. air compressors - www.atlascopcogroup.com - Nacka• Sandvik - industrial engineering & manufactur- ing e.g. tools, steel, mining, construction – www.home.sandvik - Stockholm• Skanska - heavy construction - www.skanska.com - Stockholm• Assa Abloy - industrial supplies - www.assaabloy.com - Stockholm• SKF - bearings, seals, lubrication systems, main- tenance products etc.. - www.skf.com - Gothenburg• Hexagon AB - precision measuring technologies - www.hexagon.com - Stockholm• Electrolux – appliances - www.electrolux.com - Stockholm• Boliden AB – mining - www.boliden.com - Stockholm• Epiroc- mining, infrastructure equipment - www.epiroc.com - Stockholm• Alfa Laval - industrial machinery - www.alfalaval.com - Lund• Ericsson - telecommunications equipment/ser- vices - www.ericsson.com - Stockholm• H&M - large clothing retailer - www.hm.com - Stockholm• AFRY - industrial consulting - www.afry.com - Solna• Tetra Pak - food packaging - www.tetrapak.com - Lund

• Thule Group - consumer goods - www.thulegroup.se - Malmo• Brio - toys, child safety seats, etc. - www.brio.net - Malmo• Haldex - auto parts - www.haldex.com - Landskrona• Hoganas - powdered metals - www.hoganas.com - Hoganas• Vida B - sawmills - www.vida.se - Alvesta• Swegon AB - ventilation & indoor climate systems - www.swegon.com - Gothenburg• Alfdex - industrial machinery - www.alfdex.com - Landskrona & Tumba• Nynas AB - oil & gas exploration & production - www.nynas.com - Stockholm• LKAB - iron ore mining - www.lkab.com - Lulea (government owned)• FlexLink AB - industrial automation equipment - www.flexlink.com/en/home/ - Goteborg• Hasselblad - photographic equipment & sup- plies - www.hasselblad.com - Gothenburg• Expander System Sweden AB - industrial machinery - www.nord-lock.com - Atuidaberg • Fjallraven - outdoor clothing & equipment - www.fjallraven.com - Ornskoldsvik• Elektra - radiation therapy, radiosurgery & related equipment - www.elektra.com - Stock- holm • Najad Yachts – yachts - www.najad.se - Henan• Molnlycke Health Care - medical devices - www.molnlycke.com - Gothenburg • Orexo - pharmaceuticals - www.orexo.com - Uppsala• HIAB - commercial vehicles, trucks etc. - www.hiab.com - Hudiksvall• Wallenius Lines - marine transportation - www.walleniuslines.com - Stockholm• SAAB - large defense contractor, security - www.saab.com - Stockholm• KNEA AB - computer operating systems & con- sulting - www.enea.com - Kista• SSAB - iron & steel - www.ssab.com - Stockholm• Scania AB - heavy trucks, buses, diesel engines etc. - www.scania.com - Sodertalje (owned by Volkswagen)• SCA - timber, pulp & paper - www.sca.com - Sundsvall• Recipharma – pharmaceuticals - www.recipharma.com - Stockholm

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• Primus AB - portable cooking devices - www.primus.eu - Stockholm• Profoto - photographic equipment - www.profoto.com - Stockholm• Kronleins - beer and liquor production - www.kronleins.se - Stockholm

Public Holidays -2020• January 1 - New Year`s Day• January 6 - Epiphany• April 10 - Good Friday• April 12 - Easter• May 1 - May Day• May 21 - Ascension Day• May 31 - Whit Sunday• June 6 - National Day• June 20 - Midsummer`s Day• October 31 - All Saints Day • December 25 - Christmas Day• December 26 - Second Day of Christmas

ByPaulMastilak InterMark3, Inc

Stockholm, Sweden

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