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Business / Companies

ABB CEO stresses confidence in China's economic growth, market outlook

(Xinhua) Updated: 2014-09-10 11:06

ABB CEO stresses confidence in China's economic growth, market outlook

A man cycles past the logo of Swiss industrial group ABB at an office building in Zurich October 24, 2013. [Photo/Agencies]

LONDON - ABB Inc, a global grid equipments and automation technologies giant, Tuesday stressed its confidence on China's economic growth and market outlook, as they are continuously bolstered by industry upgrade, energy efficiency, automation applications, alongside with huge infrastructure programs.

Ulrich Spiesshofer, chief executive of ABB, said in a group interview here in London that China is a very important market to ABB, as well as a significantly important platform for ABB to take the company to the next level.

Though China's economic growth is expected to decelerate in the future compared to its past 35-year performance, the country's ambitious blueprint on industry upgrade, energy efficiency , automation application, alongside with huge infrastructure programs are still able to boost its economic outlook and the rosy picture for the industries concerned, said Spiesshofer.

"We are very optimistic on China's long-term development in infrastructure programs," he said.

Spiesshofer also elaborated its understanding on China's "new normal" pattern of economic growth.

He said China has to tackle with the environmental pollution problems from economic growth, and this could happen in two ways, one is to cut down the energy consumption per unit of gross domestic product, the other one is to create environmental friendly technologies.

Spiesshofer added that ABB will collaborate with Chinese government for their action on anti-trust, a process that could incubate and optimize the competitive market environment,

On the same day at its annual Capital Market Day in London, Spiesshofer announced a surprising $4 billion share buyback plan after the stock's dismal performance over the past year.

ABB also outlined the new long-term targets for the company, with plan to increase operational earnings per share by 10 to 15 percent on a compound annual basis from 2015 to 2020. And the like-for-like sales is expected to grow by 4 to 7 percent per year over the same period.

On Friday last week, however, the world's largest power-grid maker announced a strategic collaboration with China's BYD Co, Ltd to jointly develop new solutions for energy storage building.

The Switzerland-based ABB Group of companies operate in around 100 countries and employ about 145,000 people.

 

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