Blasting a new trail: How a bold start-up revolutionised outsourcing in China, home of the world’s largest mining industry

• Main Authors: TATARYNOWICZ, Adam, RAO-KACHROO, Mahima, YAN, Aimin
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2025
• Subjects: Mining and metals industry; Competitive advantage; Competitive strategy; Growth strategy; Coal mining; Internationalization; Asian Studies; Strategic Management Policy
• Online Access: https://ink.library.smu.edu.sg/cases_coll_all/514; https://cmp-shop.smu.edu.sg/products/blasting-a-new-trail-how-a-bold-start-up-revolutionised-outsourcing-in-china-home-of-the-world-s-largest-mining-industry?variant=42473839591466
• Institution: Singapore Management University

Launched in 1988 by Dr Bingxu Zheng (Bingxu), Hongda Blasting Company Limited (Hongda) initially provided civilian infrastructure blasting services in China’s Southern Guangdong Province. Over time, Hongda began specialising in urban control-blasting technology—an expertise that earned Bingxu the title of “The Blasting King” from China Central Television (CCTV) network. With the know-how and experience gained over the years, Bingxu saw an opportunity to become an outsourcing pioneer and began providing an array of third-party services to traditional mining companies. In the first two decades of its operations, Hongda became the ‘blasting’ company behind the transition of much of Guangzhou’s civilian infrastructure. As Hongda deepened its capabilities in the blasting process, it began offering a range of integrated outsourcing services for China’s growing domestic mining industry. It also began focusing its efforts on ‘intelligent mining’ or unmanned mining and construction operations. By 2023, Hongda’s blasting services were utilised across more than 100 projects in various parts of China, and the company had begun to build a growing overseas presence through participation in the Chinese government’s ‘Belt and Road Initiative’. Despite Hongda’s successes, Bingxu faced numerous stumbling blocks while continuing to grow the business. The challenges included procuring regulatory permissions from various government bodies, improving mining company management practices, reducing the risks associated with mining worker safety, and managing to stay competitive in China’s and the world’s increasingly crowded mining landscape. The case teaches students about the role of Business Model Innovation (BMI) in value-chain transformation, strategic decision-making analysis, navigating regulatory and competitive challenges, technological innovation in high-risk sectors, and strategic risk assessment and mitigation.