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Alstom sees no roadblocks for technology transfer

By Lu Haoting (China Daily)
Updated: 2009-02-10 08:11

Alstom will continue technology transfer to China and strengthen its presence in the country, which potentially boasts the world's largest market for infrastructure building, the head of the company said yesterday.

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Patrick Kron, chairman and CEO of the French power and rail technology provider, made the remarks to more than 50 Chinese reporters in Beijing. The move, many analysts said, was aimed at repairing relations with China after a Financial Times article quoted a senior company executive saying that China was exporting trains using technologies derived from Western suppliers and was blocking bids from foreign manufacturers. The report ignited a furor among the Chinese people.

"We have no complaint about the way these technologies were transferred and there was no breach of contract whatsoever," Kron said.

Technology transfer has been a key part of Alstom's strategy. It usually forms consortiums with local partners when bidding for projects in overseas markets.

"We know we have transferred technologies to potential competitors, but the way to address long-term competitiveness is to continue to invest in development of new technologies for the future," Kron said.

Alstom will open a new facility for Wuhan Boiler Co, of which it has acquired a 51-percent stake, in the second half of this year, Kron said. The facility will be the French company's largest boiler factory in the world.

The company is also expanding its subsidiary in Tianjin, Tianjin Alstom Hydro Co Ltd, which is the company's largest hydro installation base.

China has become the second largest location for Alstom after France with about 9,000 employees working in 18 entities and 13 production sites.

The country promises to become one of the world's most significant markets for rail transport and power generation. Nearly all major train manufacturers and power generation equipment manufacturers have entered the Chinese market.

Alstom reported 13.5 billion euros of sales during the first nine months of 2008/09, up 12 percent year-on-year.