Voith sees more Chinese orders in 2012
German industrial conglomerate Voith Group said on Friday that its new orders from the Chinese market totaled 769 million euros (10 billion U.S. dollars) in the 2012 fiscal year ending September 30.
The figure marked a rise of 3.2 percent year on year amid a challenging global economic environment, ensuring Voith stays on a long-term path of growth in China, the company said at a press conference.
Voith obtained several landmark orders, including a 87.5-million-euro contract with State Grid Corporation of China, which have consolidated its leadership in many of the country's key industries, it said.
Due to a slowdown in some industries, especially in high-speed rail, Voith saw its China sales decrease to 825 million euros in the past fiscal year, however.
Hubert Lienhard, CEO and president of Voith, said the company remains optimistic about the prospects of the Chinese economy despite the marked slowdown in 2012.
"China, which is already our largest single market outside Germany, has become a major driver of our global business," Lienhard said. He projected better sales next year.
The Chinese government's increasing focus on renewable energy, public transport and sustainable paper-making technologies to facilitate the country's economic transformation will present Voith with unprecedented business opportunities in the coming years, he said.
According to Lienhard, China is the core of Voith's global investment. The company's investment totaled 276 million euros in the past fiscal year, of which 110 million euros went to China. It plans to invest 400 million euros in China in the five years from 2012.
Voith currently provides about one quarter of the installed capacity of hydropower in China, and takes up about one third of the country's paper machines market.
In the 2012 fiscal year, Voith's global sales rose 2 percent from a year earlier to 5.7 billion euros, surpassing the record of previous years, the company said.
Founded in 1867 as a family-owned company, Voith employs more than 42,000 people worldwide and operates in over 50 countries.
Voith obtained several landmark orders, including a 87.5-million-euro contract with State Grid Corporation of China, which have consolidated its leadership in many of the country's key industries, it said.
Due to a slowdown in some industries, especially in high-speed rail, Voith saw its China sales decrease to 825 million euros in the past fiscal year, however.
Hubert Lienhard, CEO and president of Voith, said the company remains optimistic about the prospects of the Chinese economy despite the marked slowdown in 2012.
"China, which is already our largest single market outside Germany, has become a major driver of our global business," Lienhard said. He projected better sales next year.
The Chinese government's increasing focus on renewable energy, public transport and sustainable paper-making technologies to facilitate the country's economic transformation will present Voith with unprecedented business opportunities in the coming years, he said.
According to Lienhard, China is the core of Voith's global investment. The company's investment totaled 276 million euros in the past fiscal year, of which 110 million euros went to China. It plans to invest 400 million euros in China in the five years from 2012.
Voith currently provides about one quarter of the installed capacity of hydropower in China, and takes up about one third of the country's paper machines market.
In the 2012 fiscal year, Voith's global sales rose 2 percent from a year earlier to 5.7 billion euros, surpassing the record of previous years, the company said.
Founded in 1867 as a family-owned company, Voith employs more than 42,000 people worldwide and operates in over 50 countries.
