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Updated: 2007-06-14 16:56

Even with an annual growth rate of as high as 50 percent in China, lamp and switch maker Simon Electric looks to a more integrated product portfolio and even greater sales in the years ahead.

Based in Spain, the company has a global presence, but fully recognizes the potential of sales in China and plans to localize more products for the enormous market.

"In addition to light switches, we are planning to introduce new lighting products and air switches (that use low voltage)," says Jack Zhu, general manager of Simon Electric (China). "With these efforts, we are determined to increase our sales to 1 billion yuan by 2010."

The company's target is to achieve 350 million yuan in sales this year in the Chinese market, Zhu says.

"We have managed to achieve an annual year-on-year growth rate of 40 to 50 percent during the past several years. We expect to maintain the same growth momentum in the coming three years," he adds.

The top priority for the company in 2007 is to lay a solid foundation for further development by offering better products and services, Zhu says.

The switch market of China shows great potential, with an estimated market value of 8 billion yuan. The high-end segment accounts for about 20 to 30 percent of the market.

"Competition within the switch market segment is very intense. We will stick to the high-end sector to strengthen our image as a quality product and service provider. We will make full use of the 2008 Olympics to develop our business presence," Zhu says.

Simon Electric won the contract to supply lighting switches for the 2008 Olympics National Olympic Stadium, also known as the "Bird's Nest", and the Olympic Aquatic Center.

Zhu does not rule out the possibility of cooperating with the Olympic organizer on other contracts.

"We have a special Olympics team, who have close contact with Olympics-related projects," he says. "We think providing products for the Olympics not only generates revenues, but is also a golden opportunity to build our brand power."

Simon Electric (China) is also interested in providing products and services for the 2009 Guangzhou National University Sports Meet and the 2010 Shanghai World Expo, Zhu adds.

To prepare for future sales increases, the Spanish company is now expanding its China manufacturing capacity, including a newly built production facility of 20,000 square meters in Nantong city of Jiangsu Province, along with another 24,000-square-meter plant in the city in the planning stages.

Yet China is more than just a manufacturing center for Simon Electric.

"China is our biggest investment destination outside Spain. We will continue to make all-around investment in China in the coming years, covering both research and development and personnel training," says Kim Collell, assistant manager of the company's international operations.

Collell declined to release investment figures in the Chinese market.

Simon Electric is one of the largest global manufacturers of switches and lamps. The Spanish firm has 23 manufacturing bases and branches in Europe, the United States, Asia and Africa. Its sales channels extend to 55 countries and regions.