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Converteam eyes opportunities in China

By He Wei (China Daily Shanghai Bureau)
Updated: 2011-04-25 16:53

SHANGHAI - Inspired by the huge market potential in China, driven by its robust economic growth, Converteam, a power conversion company, is eying more opportunities to "share the wealth" with this fast-growing economy.

The company has pledged to grow its business in key emerging countries like China, India and Brazil, which all maintain a fairly high level of growth, said vice CEO Florent Battistella in Shanghai.

"We consider China our first priority (of business development), because it is not just an emerging country but a fast-growing market, where changes are visible everyday and the country's ambition for modernization is crystal clear," Battistella told China Daily in an interview.

The Converteam Group stands at the leading edge of technology and innovation in power conversion engineering. The France-based company, which has recently signed an acquisition agreement with electricity tycoon General Electric (GE), aims to significantly increase its global reach and seize new business opportunities, most notably in developing countries.

According to Battistella, the transaction, if approved by national and European authorities this summer, will enable Converteam to benefit from GE's abundant investment capacity, superior infrastructure, and access to first-tier client bases. Converteam will stay an autonomous profit center and will be merged as a center of excellence for Power Conversion within GE.

Converteam understands the drawbacks and advantages of all the available energy sources: coal, fire, nuclear, hydro, wind, solar and even tidal power, and is ready to serve any of these sub markets. But it also believes that renewable energy (both wind, solar, and later sea energy) is a booming sector in China and is ready to put efforts developing it in China.

"With massive infrastructure constructions, there is a huge need for energy, and we are optimistic about the rapidness of the country's development," Battistella said.

Converteam, since its entry into the Chinese market in 2000, has set up altogether four operation centers nationwide, with its headquarters based in Shanghai. In 2010, the order intake in China has recorded a 43% jump to 100 million euros, and the figure is expected to reach 150 million for the year 2011.

Given the advantages and constraints of each different country, Battistella said Converteam would prefer to serve both the traditional power sectors and the new energy field with tailor-made solutions for China.

"We can undergo two processes simultaneously. We help generate power in a more efficient way, and we can also provide better quality for electricity users," Battistella said.

Battistella touted the transparency and favorable conditions of China's investment environment, saying the establishment of a research and development center has showcased its firm commitment to this promising economy. But he also mentioned the high competitiveness of the Chinese market.

"If you are doing business in China, you have to be on site and make quick decisions. The key to a successful business in China is to accelerate, integrate and localize resources and infrastructure here," Battistella said.