HONEYWELL expects its China revenue to continue growing about 30 percent annually within the next five years through a strengthened presence and the provision of energy-efficient, environmentally-friendly security products, Honeywell China Chief Executive Shane Tedjarati said yesterday.
The United States-based giant announced yesterday it will move the headquarters of its Electronic Materials business to Shanghai from the United States to better penetrate the semiconductor materials market in Asia. It already has expanded a petrochemical plant in Shanghai.
Honeywell China's annual revenue has surpassed US$1 billion, mainly from the company's four key businesses - specialty materials, aerospace, automation control and transport.
China is the largest single market contributor to Honeywell, according to the company, which declined to reveal detailed regional figures.
"We provide the technologies and products that the country needs for sustainable development, such as energy-efficient products. We have a five-year project in China issued in July, and we expect to keep the high growth rate of China," said Tedjarati, who said Honeywell's China business will grow 30 percent this year.
Meanwhile, Honeywell is developing clean energy products for automotive diesels and providing solar energy technologies to several Chinese firms. Airlines and oil giants are also Honeywell's big clients, according to Tedjarati.
The relocation of Electronic Materials global headquarters underlines Honeywell's emphasis on China, which not only contributes to the regional economy, but also serves its global customers, according to Nance Dicciani, president and CEO of Honeywell Specialty Materials.
"Asia has become a key growth area for semiconductors and adjacent industries and will account for more than half of Electronic Materials' sales within the next few years," said Dicciani. "Our clients have moved to Asia and it is natural for us to follow them."
China's integrated circuit market revenue, which was No. 1 in the world, reached 486.3 billion yuan (US$64.8 billion) in 2006, up 27.8 percent from the previous year. In 2011, the figure will hit 1.09 trillion yuan, said CCID Consulting, a Beijing-based research firm under the Ministry of Information Industry.