For Rockwell Automation (Rockwell), it is high time to penetrate more industrial sectors in China to balance its business development in the country.

The automation solutions provider not only plans to cement its position in its traditional industries such as power and energy, oil and gas and infrastructure in China this fiscal year, but also to tap the vast consumer-oriented industrial segments, such as automotive, pharmaceuticals and food processing.

"We are seeking the balanced development of our business penetration in the vast Chinese market," said Sunny Tse, Rockwell's marketing and business development director for Greater China.

"We have witnessed a tendency by companies within the consumer-product sectors to rely more on automation products and solutions in China It would, therefore, be wise for Rockwell to embrace such a trend."

In a country like China, which has such a large population, the market potential of consumer-based industries will be extremely huge, Tse said.

The automtive-manufacturing industry is an example.

But more intense competition in the future will leave firms in these sectors scrambling to trim costs and enhance their competitiveness.

That will provide tremendous business opportunities for automation solution providers such as Rockwell.

"As China honours its commitments to the World Trade Organization, the mounting pressure from the competition will force companies to lower costs, sharpen their competitive edges and speed up the process of manufacturing," Tse said.

"The more stringent requirements demand support from powerful automation products and solutions."

The profit margin of the automotive manufacturing sector is not as high in China as it previously was. Slumping prices, the result of heated competition, is forcing carmakers to enhance efficiency and cut costs.

In the pharmaceutical and food processing sectors, people emphasize product security and safety.

In this regard, Chinese companies have done a poor job compared with their foreign counterparts.

Firms within these industries cannot rely solely on labour-intensive operations, Tse added. Instead, they need to enhance automation.

"Only in this way can local firms compete with powerful overseas counterparts," Tse added.

Regarding the 2008 Beijing Olympics, Tse said Rockwell is experienced in providing services during Olympics-related projects, and is qualified and willing to participate in the China-hosted sports gala.

"Our products and solutions apply to airports, subway construction and other public transportation and facilities, such as water/waste water and energy," said Tao Xiangdong, Rockwell's regional manager for northern and northwestern China.

"We are quite confident we can succeed in bidding for the Olympics."

Tse said Rockwell has been busy lobbying Beijing's Olympic organizers for Olympics-related projects.

Asia-Pacific is Rockwell's fastest-growing market. China, meanwhile, is the fastest-developing market in Asia.

Asia-Pacific represents roughly 10 per cent of Rockwell's global business revenues. China contributes 30 per cent of the firm's revenues from Asia-Pacific.

"Last year, China contributed 40 per cent of the business growth in the Asia-Pacific market. All of that stemmed from natural growth, without taking into consideration the mergers and acquisitions," Tse added.

Tse said Rockwell will not seek blind business expansion for the sake of rocketing growth.

"Our target is to maintain a sustainable development, and we will not artificially set a particular target to meet," Tse said.

Despite that policy, Rockwell has maintained a double-digit growth rate since it entered the Chinese market in the 1980s.

In each of the past five years, the firm's annual business growth margin, in China, surpassed 30 per cent.

Rockwell Automation is a global provider of industrial automation power, control and information solutions.

(China Daily 03/21/2005 page11)