- Record revenue growth of 21%
- More than 50% growth in export while focusing on “In China for China”
- $230M record high investment in footprint and local partnership
- Expecting continued growth in 2012 but higher volatility
Beijing, March 7, 2012 –Following ABB Group’s 2011 annual result release, ABB announced its China annual result here today. Result shows the company achieved record high revenue growth of 21%, reaching $5.1 billion, and record high investment of $230M, doubling the annual average investment in the past years.
Claudio Facchin, Head of ABB North Asia Region, Chairman and President, ABB China Ltd.
At today’s press conference, ABB North Asia and China President Claudio Facchin said, “ABB achieves continued solid growth in China despite the economic slowdown in 2011, thanks to the strong market demand for automation and grid reliability”.
“Industries demand a higher level of automation to improve energy efficiency, quality, productivity and operational health & safety. China’s 12th 5-year plan to migrate from a resource intensive economy to a low carbon and knowledge based economy was taking off,” said Facchin.
“ABB was able to support this positive change due to its consistent investment in technology and capacity in China under its ‘in China for China’ strategy. In the past 6 years, ABB’s average annual investment was more than $100M, and the figure rose to a record high last year due to our strategic initiatives to expand presence through partnership with leading local players,” he said.
Being the first to establish robotics R&D and manufacturing in China in 2005, ABB offered its advanced manufacturing solutions based on robotics technology to both automotive and other industries, helping companies like Great Wall Motor, the China Auto OEM brand, upgrade its automation and manufacturing capacity. In the electronics industry, ABB initiated various new robot applications such as stamping, laser welding, laser marking and polishing, which helped customers improve product quality and reduce labor cost.
As an early mover in process automation, ABB set up its largest global base for integrated analytical systems in Shanghai two years ago. Today, the locally produced ABB Analyzer Houses have been successfully deployed in a number of projects for companies such as Sinopec, CNPC, Yangzi Petrochemical Company, SBPC, BASF, Dow Corning, Shell and Celanese with several being exported to global projects in the Middle East and Africa.
ABB management team at the event
ABB’s motors and drives, observing the highest energy efficiency standards in the world, kept generating solid business for ABB and helping customers cut energy consumption. In China, with only the motors and drives delivered to Chinese customers in the past 14 years, ABB was able to save 138B kWh of electricity, which is enough to satisfy the power needs of 1.94 billion people for one year (based on the power consumption level of Beijing citizens in 2010).
Facchin said, ABB enjoyed customer intimacy through proven application-specific packages and industry-specific systems, and one-stop shop automation offering for products, packages, systems and services.
In a country where power generation is far from the loading areas, using high efficiency and low loss Ultra High Voltage Direct Current technology to transfer power from the west to the east stands high in the agenda of the country. ABB, being the inventor of the HVDC technology, succeeded in getting a few major orders from SGCC and CSG, for the Jinping – Sunan (Sichuan – Jiangsu, 7,200 MW, 2,090 km, 800 kV) and Nuozhadu-Jiangmen (Yunnan – Guangdong, 1,451km, 5,000 MW, 800kV) last year.
Environment protection, in addition to renewable energy development, is also an important part of ABB’s business. In 2011, ABB was able to help many provinces and cities including Hong Kong and Yunnan in their major water treatment projects.
2011 was a milestone for ABB’s partnership with a key local player. ABB established with Guodian Nanjing Automation Co. Ltd., a joint venture called Nanjing SAC Automation Co. Ltd, expanding offerings in power grid for utility, power plant and industry infrastructure markets. The two companies invested a total of 1.75 billion Yuan in the joint venture and merged their power grid automation related activities.
Claudio Facchin has been working in China for two years. “Local partnerships have been critical for us to secure market penetration in the past 20 years,” he said.
In 2011, ABB added more than 2,000 employees, provided a large number of mobility working opportunities in and out of China, and increased investment in training by 80% to its 18,000 people in China.
ABB China exports to more than 40 countries, achieving more than 50% of export growth in 2011. “We are a preferred supplier for Chinese companies going global, thanks to the strong R&D, engineering, manufacturing capabilities built up locally in China, in addition to ABB’s global resources and brand,” added Facchin.
Talking about 2012, Facchin said, “We have felt the economic slowdown in the last 6 months, especially in housing, railway and shipbuilding, and 2012 is a year with new challenges. However, I am confident China will remain a high growth market, and we will continue to invest in technology and people here. ”
ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 135,000 people. ABB has a full range of business activities in China, including R&D, engineering, manufacturing, sales and services, with 18,300 employees, 35 local companies, and an extensive sales and service network across 80 cities.