Swedish door company to target China

ASSA ABLOY locks are displayed in a shop in Riga, Latvia, Sept 19, 2013. [Photo/Agencies]

Swedish door manufacturer ASSA ABLOY has appointed Lars-Gunnar Edh, the former China door group president as President of ASSA ABLOY Greater China.

The move signals the company's intention to tap the big but ever challenging Chinese market.

Since the company's entry into China in the late 1990's, ASSA ABLOY acquired and merged with many leading local brands such as Panpan door, Guli and Yale lock. Last year, China contributed more than 4 percent of the group's revenue.

"I would focus on three strategies: expanding the market by getting closer to our customers, product innovation and cost efficiency,”said Lars. “We aim to reinforce our No 1 position in the China market."

It is the first time ASSA ABLOY has separated China from the rest of its Asian business.

With the slowing down of the real estate market, ASSA ABLOY is trying to navigate and grab the opportunities in the Southern China where the demand on security product is higher.

Edh said the company would invest in robots and smart automation to improve quality and tap the growing labor cost.

"Last year was tough. This year would be tough too. But next year would see big increase and I believe the urbanization would bring opportunity," he said.