Center

China helps push up Voith's income

By Jiang Jingjing (China Daily)
Updated: 2006-03-22 06:17

China has again proved a major growth market for Voith, a German-based industrial and engineering group.

In the last fiscal year, the company's worldwide sales climbed by 8.8 per cent to a record 3.5 billion euros (US$4.3 billion), among which 396 million (US$482.3 million) was made in China.

This figure was up on the previous year.

"Investment to build and expand infrastructure remains the backbone of robust economic growth in China," said Voith's Chief Executive Officer Hermut Kormann.

"The country needs Voith's various offerings to accommodate the fast development in sectors like public transportation, energy, mobility and industry."

The firm plans to further expand its business in the country. Voith Paper wants to extend its current facility in Jiangsu Province's Kunshan to cope with growing demand in the Chinese market, while also supporting the company's wider Asian business.

Another division, Voith Turbo, plans to extend its current location to fulfill increasing orders from major Chinese mainland cities, such as Beijing, Shanghai and Guangzhou, for public transportation projects, such as metro and bus systems.

As for hydropower, the company is also looking to get involved in the country's plans to double its hydropower capacity by 2020.

"As with our global strategy, we will continue to work in partnership with China's industrial sector, its government and our customers to build a strong infrastructure," Kormann added.

"We want to inspire innovation and interest in science, and strengthen the foundation of growth for our long-term business."

Currently, all of Voith's business sectors operate in China, including Voith Paper, Voith Turbo, Voith Siemens Hydro Power and Voith Industrial Services.

The group has developed its presence in 14 locations across China, with the number of employees growing by 50 per cent since last year.

Globally, Voith's net income last year was up 6 per cent to 98 million euros (US$118.6 million).

This trend continued in the first quarter of the current fiscal year, with both new orders and sales sharply up on the same period a year before.

This May, Voith will open its global Paper Technology Centre in Heidenheim, Germany.

As the largest single investment in the company's history, it will re-assess every paper production process.

(China Daily 03/22/2006 page11)