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Honeywell sees bigger role for China unit

Updated: 2012-09-19 09:45
By Wei Tian ( China Daily)

Honeywell International Inc is expecting more exports from its Chinese division as it benefits from more Chinese clients establishing themselves overseas, an executive with the US technology and manufacturing leader said.

"Our exports from China has been growing 5 to 10 percent annually in the last two or three years for total industrial business, which was already higher than the historical figure," said Chris Dartnell, vice-president and general manager of strategic geographies at Honeywell Process Solutions. "The growth figure will continue to increase because of more big projects in the pipeline."

Honeywell has been enjoying an average overall revenue growth of 21 percent over the last five years, Dartnell said.

The Fortune 100 company has been providing tailored products and service for some of China's industrial giants such as China Shenhua Energy Co Ltd, PetroChina Co Ltd and Sinopec Group, which are also the major carriers of China's "going-out" strategy.

Despite the fact that China's industrial activity continues to weaken, and key economic indicators such as the purchasing managers' index have fallen below the critical level of 50, Dartnell said he is still confident in the company's business prospects in the country.

Amid rising concern over outflowing foreign capital caused by the economic slowdown, Honeywell has continued to invest in the Chinese market by opening a new office in Tianjin.

The facility will provide engineering services and turnkey solutions - including design, systems integration, testing and training - for Honeywell process industry customers in China and the Asia-Pacific region.

"This new facility demonstrates Honeywell's long-term commitment to the Chinese market," Dartnell said.

"We continue to be very excited about China, for both the short term and long term."

Dartnell's optimism isn't groundless.

As the Chinese government continues to push forward upgrades of its industrial sector, China's automation industry has been enjoying a fast growth rate at around 30 percent a year over the last few years.

Shen Minggao, head of China Research of Citi Investment Research, part of Citigroup Inc, said automation and mechanized production will be among the key growth engines for China's economic growth.

There is still huge potential in China's manufacturing sector, and a better environment in the sector will greatly expand China's role in the global value chain, Shen said.

Cashing in on the upgrade of the world's second-largest economy, Honeywell is building the country into an innovation base, as innovation becomes the driving force of its continued growth worldwide.

In China, Honeywell has established research facilities in major cities such as Beijing, Shanghai, Tianjin, Nanjing, Suzhou and Xi'an.

weitian@chinadaily.com.cn

 
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