Finnish lift firm sees rising prospects in nation

Finnish elevator and escalator company Kone Corp plans to expand its business in China and aims to recruit thousands of employees over the next few years, as it sees big opportunities from the nation's commitment to opening-up, digital manufacturing and the transition to carbon neutrality, a senior executive said.

Joe Bao, managing director of Kone Greater China, said in an interview with China Daily that "China remains a strategic focus for Kone, and we understand that our success is tied to China's success".

Bao said the Chinese mainland is the Helsinki-based firm's largest individual market worldwide, accounting for 26 percent of its global sales in its fiscal year of 2023. The country also hosts Kone's largest manufacturing base and its largest overseas research and development center, which has over 200 valid patents to its name.

"Our manufacturing base, Kone Kunshan Park in Jiangsu province, not only meets the demand of the domestic market, but also exports products to over 100 countries and regions worldwide," Bao said.

He said China set a GDP growth target of around 5 percent for 2024, which demonstrates the nation's commitment to sustainable and stable economic growth. Considering the scale of China's economy, this growth rate is quite significant.

"We anticipate that the midterm and long-term growth drivers for China will include domestic consumption, digital manufacturing and the transition to carbon neutrality. These drivers present new investment opportunities for our company," Bao added.

When asked about his views on some Western media reports that China's economic development has reached its peak, Bao said: "We are confident and positive about China's long-term development. The economic fluctuations we observe are strategic responses to short-term challenges, aiming at steering China toward high-quality development over the long run."

Take the property sector, which is closely linked to the company's business, as an example. Bao said, "While many discuss its decline, I believe this narrative overlooks the government's strategic readjustments aimed at ensuring stable and sound development in the real estate market."

This year's Government Work Report underscores such commitment by focusing on promoting stable and healthy market development through refined policies that emphasize "new urbanization", address essential housing needs, cater to the diverse requirements of housing improvements and steadily push forward with urban renewal initiatives, Bao said.

The senior executive also thinks highly of China's recent emphasis on cultivating new quality productive forces, which "emphasizes the strategy of valuing quality over quantity in China's journey toward realizing comprehensive modernization".

"They are the engines that ensure freeing the economy from traditional constraints and achieving high-quality development in the long run," he added.

The company is working to drive digitalization across its products, services and manufacturing processes. For example, the company has offered predictive maintenance services by utilizing AI technology. With real-time monitoring and intelligent analysis, potential issues are identified before they cause disruptions, resulting in about a 55 percent reduction in elevator flaws and a 40 percent reduction in elevator entrapment, Kone said.

Meanwhile, in June 2023, Kone marked a milestone by becoming the first in the industry to achieve carbon-neutral manufacturing units globally, and the company is on track to meeting its ambitious goal of achieving carbon neutrality operations before 2030.

Jin Zhuanglong, minister of industry and information technology, said in a speech in Beijing on Monday that China will continue to expand high-standard opening-up, implement measures for complete removal of restrictions on foreign investment in the manufacturing sector and deepen mutually beneficial cooperation with companies across the globe.

Bai Ming, a researcher at the Chinese Academy of International Trade and Economic Cooperation, said foreign companies are important forces in promoting industrial upgrade in China.

According to Jin's ministry, China has the most complete industrial system in the world. The country ranked as the largest manufacturer for the 14th consecutive year in 2023, when its manufacturing output accounted for nearly 30 percent of the global total.