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ABB to add 100m yuan to China investment

By Jin Jing (China Daily)
Updated: 2007-10-30 09:50

ABB, the world's top power and automation technology company, yesterday said it will maintain its annual growth rate in China at 20 percent by offering solutions for green development and adding another 100 million yuan (US$13.37 million) in investment.

"China has become the largest market for ABB by sales and will continue to play a very important role in our future development," Brice PG Koch, chairman of ABB China Ltd, said at ABB's China Centennial Ceremony yesterday.

"We will continue to offer energy-efficient products to facilities for the 2008 Olympic Games and 2010 Shanghai Expo," said Fred Kindle, CEO of ABB.

According to Kindle, ABB's products will be used at the Bird's Nest main stadium, Water Cube swimming center, new CCTV office project, Beijing International airport expansion and Beijing Chengbei 500kv substation.

"We decided to add another 100 million yuan in investment in China this year, and will maintain an annual growth rate of 20 percent," said Koch.

"We'll continue to transfer most key technologies and manufacturing to China and make it the global center for ABB's resources, research and development and export," he added.

The company moved its global headquarters of robotics to China last year.

ABB's investment in China is expected to be over US$800 million by the end of this year. The group's China operation employs 12,000 people in the country.

The expansion project of ABB Shanghai Motor Co Ltd and a new robot production line is still under way. The company's sales in China in 2006 amounted to US$2.8 billion.

According to Kindle, ABB has helped China's users save 30 billion kWh in 12 years by using its energy-efficient motors. The savings equal six years' output of a large power plant.

"We expect to expand our Asia market by 52 percent to US$88 billion by 2011, when Asia will surpass Europe as our largest market. And with that goal, China is expected to contribute 50 percent of our business in Asia," said Kindle.

ABB's market size in Asia amounted to US$58 billion, second only to that in Europe with US$67 billion. ABB's global market size is expected to grow 34 percent to US$255 billion by 2010 from the current US$190 billion.

The company is targeting revenue growth of 8 to 11 percent from 2007 to 2011 globally, with continued focus on power and automation, according to Kindle.


(For more biz stories, please visit Industry Updates)



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