The Switzerland-based power giant plans more investment in China
ABB Group is poised to invest $100 million in China this year as it sees abundant opportunities arising from the government’s policy to increase energy efficiency in the country’s 12th Five-Year Plan (2011-2015), said ABB’s top executive.
“We look at any type of power resources in China to find opportunities that support China’s transition to a low-carbon and high-efficiency economy in its 12th Five-Year Plan,” said Joe Hogan, chief executive officer of ABB, a Switzerland-based power and automation technology conglomerate.
“Thus, the investment in energy efficiency and renewable resources sectors will be our emphasis.”
According to Hogan, China will be the major generator and consumer of power globally in the next few years, accounting for 40 percent of the global growth in power consumption by 2035.
The nation’s total power consumption this year is expected to grow by 10 percent from last year to 4,600 terawatt hours.
Moreover, “we’re happy to see the Chinese government’s strong commitment to energy efficiency in its ongoing policy, with the first target for carbon intensity reduction by 2015,” said Hogan.
The central government said that it aims to cut the country’s energy use by 16 percent for each $1,000 of GDP. By 2015, carbon dioxide emissions will be reduced by 17 percent by each $1 of GDP.
Hogan said the conglomerate will maintain its annual investment of $100 million in China this year, as it has done in each of the past seven years.
The investments will benefit ABB’s manufacturing facilities, refining and expanding designs, and localizing new technologies and products.
About 85 to 90 percent of ABB’s product portfolios were introduced to the Chinese market, Hogan said.
As part of the company’s investment plan, it will recruit 2,000 new engineers to support research and development and service, and in addition establish a regional energy management hub in China this year.
ABB said it has seen a strong start in China this year, its biggest market, as orders in power and automation sector from the country surged 70 percent in the first quarter.
In March, ABB reported robust 2010 earnings with revenues of $4.5 billion, representing a 10 percent year-on-year increase.
According to the company, its exports market saw a 50 percent growth.
Domestic demand for energy efficiency, grid reliability, renewable energy “will drive our business for the rest of the year”, Hogan said.
China’s steady industrial demand and power transmission is another strong contributor to ABB’s growth.
He said the new energy sectors such as wind power, hydropower, solar power and charging facilities for electric vehicles will be the conglomerates’ major growth engines over the next five years.
