'Global reset' sees GE poised for growth

(chinadaily.com.cn)
Updated: 2009-09-12 00:14

The dramatic uptake of its "clean technologies" is set to boost GE Transportation's penetration into the Chinese market and see it out-perform many rival companies as the country gears up for economic recovery, according to its head of China operations.

'Global reset' sees GE poised for growth

Tim Schweikert, President of GE Trans China

Speaking exclusively to China Daily from the Summer Davos in Dalian, Tim Schweikert, president of GE transportation China, said: "The global economic reset presents an opportunity to demonstrate the value of our technology and forge new partnerships."

He quoted GE Chairman and CEO Jeff Immelt as saying: "The financial crisis is not only a part of the economic cycle but also a process of global reset."

Schweikert predicted a 50 percent annual growth in the company's 2009 China sales revenue, due to its environmentally friendly products and partnerships ready to respond to growing demand.

Parent Company GE will spend $6 billion in developing new products, many targeted to improving the environment.

Schweikert said: "One of GE's greatest strengths is its ability to continue to invest even during the most challenging economic times."

GE views China, the world's third largest economy, as a key growth engine to drive its business growth, and as something akin to their "second home market".

Schweikert explained that GE is making China its second home by focusing on three objectives.

"Our first objective is to bring our technology to China by innovating products to support China's infrastructure growth plans. Second, to work with local partners to grow within China and potentially pursue international opportunities. Last, just as GE in America grew with the western expansion, GE is investing in China's fastest growing inland cities."

In August, GE Drivetrain Technologies, a unit of GE Transportation, established a joint venture with Chongqing Xinxing Fengneng Investment Co Ltd to produce large diameter gears for the wind turbine industry.

Under the terms of the joint venture, Chongqing XinXing Fengneng will be the majority owner, and the gears will be produced in a new manufacturing facility in Chongqing.

The agreement signifies GE Drivetrain Technologies' commitment to the development of a local Chinese supply chain and supports China's initiative to increase wind energy output from 1 gigawatt in 2005 to 100 gigawatts by 2020.

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