Riding on China’s high growth in energy efficiency and renewable energy
“In China for China and the world” strategy in full implementation
Achieving 10% order growth, 50% export growth and 37% local purchase growth
Beijing, March 14, 2011 –The leading power and automation technology company ABB announced today its 2010 result in China, showing China retains leading market position in ABB group, with 10% growth in orders ($4.5B), 50% growth in export, and 37% growth in local purchase. Meanwhile, ABB achieves strong growth in renewable energy, water, railway and service.
ABB North Asia Region and China President Claudio Facchin
“I am glad that we maintained strong healthy organic growth in China in 2010 in spite of the influence of the global financial crisis and the challenging market condition in the power transmission domain. ABB’s strong global footprint has turned China into a major base for energy efficiency technology and product research and development, green manufacturing and service, and also a key hub for purchasing and export,” said ABB North Asia Region and China President Claudio Facchin at a press conference today.
Taking energy efficiency, industrial productivity and power reliability as its key business drivers, ABB has kept a steady annual investment of over $100 million in China in the recent 7 years, building, refining and expanding design and manufacturing facilities and introducing and localizing latest technologies and products. ABB accelerated its footprint in China since the global financial crisis broke out, and invested over $500 million in the last three years.
“ABB’s strategy for China has been evolving from ‘in China for China’ to ‘in China for China and the World’ since early 2010, with higher efforts on innovation and R&D. This widely implemented strategy has proved to be a key for our continued success,” said Facchin.
In China, ABB started setting up local companies from 1992. All its 30 local companies are fully dedicated to local manufacturing and designing. To stay close to Chinese customers, ABB China also set up 30 branches and many service stations, offering sales and service to customers in more than 80 locations across the country. In addition to its fully established leadership in the high end market, ABB also took the initiative to implement a mid segment strategy to meet customer requirements in the faster growing mid market. “We have built up businesses under new brand in both power and automation fields, focusing on serving the mid market in China,” said Facchin.
While building up full capacity locally, ABB dedicated more resources to develop China as a hub for export, especially when more and more Chinese companies start to develop their business overseas. “We are a preferred supplier for both Chinese and international customers including EPCs in doing business abroad, due to our global experience, wide product portfolio in both power and automation, and strong presence in other countries,” said Facchin.
ABB’s global footprint also turned China into an important material and component sourcing hub, which brought the local purchase for ABB’s worldwide operations including China to $3.6 billion in 2010, 37% more compared with the previous year, strongly contributed to ABB’s global cost reduction program.
"ABB has decided to set up a global purchasing center in China this year," said Facchin.
ABB played an active role in supporting China’s fast development in the renewable energy and water processing areas, achieving 49% growth in wind, 26% growth in water and 24% growth in service business. Meanwhile, ABB keeps a strong focus in the railway industry field by setting up the new company Guangzhou ABB Microunion Traction Equipment in Guangzhou last year and localizing more railway related technologies and products.
“I anticipate continued strong growth in the energy efficiency and emission reduction, renewable energy, water, railway, and service fields, thus ABB will keep its strong investment pace in China this year,” said Facchin.
Although many challenges still remain for the industry, ABB has listed a dozen of important projects including building new factories, expanding R&D facilities, furthering product localization on its investment agenda for this year.
We plan to increase our total China workforce to more than 18,000 people by end of 2011. This means we will recruit at least 2,000 new talents. Most of them will be engineers,” added Facchin.
In 2010, 10 ABB local companies are among China’s top 100 electric equipment enterprises (according to the ranking published by the China Electric Age based on official data provided by China’s authoritative statistics organization).
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 124,000 people. ABB has a full range of business activities in China, including R&D, manufacturing, sales and services, with 16,300 employees, 30 local companies, and an extensive sales and service network across 80 cities.