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Rockwell to grow mainland sales by 10%

By Zheng Lifei (China Daily)
Updated: 2009-06-09 11:48

Rockwell Automation expects its China sales to grow by at least 10 percent this year after a 30 percent gain in sales last year and intends to pursue acquisitions to drive business expansion, according to its chairman and CEO.

Keith Nosbusch

The US firm, one of the world's biggest industrial automation service providers, chalked up $250 million sales in China last year.

"We expect the sales revenue growth (in China) to be still in the double-digit range this year, though not as fast as last year's given the global financial crisis," said Keith Nosbusch, chairman and CEO, Rockwell.

"China is still in the process of industrialization, which means the market potential for industrial automation products and technology is evolving and growing," said Nosbusch, whose company makes systems to help factories become energy efficient and run more smoothly.

"We are confident about our China sales growth, and expect it to grow faster than the country's GDP this year," the CEO said during a recent visit to China.

China's massive 4-trillion-yuan economic stimulus package and the series of industry-specific stimulus plans targeting sectors such as steel and automotive, Nosbusch said, would give a boost to companies like Rockwell.

The diversified manufacturer, which competes with Switzerland-based ABB and Japan's Mitsubishi Electric Corp, would also be actively looking for acquisition opportunities in China to drive its business expansion, the CEO said.

Rockwell, is also keen on acquiring technology companies in the country that would help complement and extend its geographical reach.

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"We are interested in companies that allow us entry to the central and middle parts of the country and give us access to heavy industrial sectors," the CEO said

The Milwaukee-based company last November bought Xi'An Hengsheng Science & Technology Company Ltd for an undisclosed amount.

The privately owned engineering firm, based in Xi'an in northwestern province of Shaanxi, delivers automation solutions to the electrical power and other heavy process industries and serves customers in the power, petrochemical, coal mining, chemical and oil markets.

Rockwell, Nosbusch said, also sees huge opportunities in China's drive to improve its energy efficiency.

The company signed a strategic partnership agreement with North China's Hebei province earlier this year, under which the two parties will cooperate on projects that help save energy, reduce emissions and protect the environment.

Rockwell, which also provides energy-saving products and technology in areas of power control, water and wastewater treatment control systems, is also in talks to ink similar pacts with other provinces.