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E x t e n d e d A u t o m a t i o n S y s t e m 8 0 0 x A
Automation Trends in the China Market
Johan Bjorklund
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Johan Bjorklund
Started in ABB 1996 as trainee Half a year in China 1997 1997-2001 Västerås, Product Management 1997-2001 2001-2003 Singapore as Technical Sales Support 2003-2005 China, Shanghai as
Area Sales Manager North East Asia and Technical Sales Support
2005- China, Beijing as Area Sales Manager North East Asia and Technical Sales Support
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China Economy and Growth
Total Economy About 10% GDP growth the last 10
years FDI
About 60 BUSD Per Year Outgoing FDI
2004: $5.7 billion 2005: $12 billion 2015: $25-30 billion Sweden
Bio Fuel in Sveg (2 BSEK)
Market Place in Kalmar (1 BSEK)
Engergy Efficient Paper Making Center in Karlstad
Huawei About 100 people in Kista
Compounded Annual Growth Rate from 2001-2006 Refining
32.3% Oil & Gas
18.7% Petrochemical
41.4% Power
24.5%
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China Economy and Growth
Stocks Shanghai Stock Exchange
Bubble Real Estate
Has cooled down a little bit since tax regulations
RMB Value / Trade Surplus Pork
Pork prices 43% up since last year
Telecom China Mobile gets about 6
Million Subscribers every month
Beijing 60 000 new cars every month
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ABB’s mile stones in China
38 sales/service offices26 companies>10,000 employees>$2.4bn revenue (2005)>$700m investment
1907 Provided 1st steam boiler to China1974 First office for China established in Hong Kong1979 Permanent office established in Beijing1992 First manufacturing JV established1995 China holding company set up in Beijing2003 Ranked among “top 10 employers” 2005 Set up research center in
Beijing and Shanghai2006 Moved Global Robotics HQ to Shanghai
Hong Kong
Beijing
ShanghaiXi’an
Hefei
Xiamen
Chongqing
XinhuiZhongshan
Harbin
Shenyang
Dalian
Tianjin
JinanQingdao
Nanjing
Hangzhou
Fuzhou
Wuhan
NanningKunming
GuangzhouShenzhenDongguan
Ningbo
Wuxi
Taiyuan
HohhotUrumqi
Changchun
Changsha
Zhengzhou
YantaiZibo
Shijiazhuang
Hohhot
Lanzhou
Chengdu
Guiyang
Nanchang Wenzhou
Suzhou
• Datong
•
Local company Sales/service branch
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河北Hebei
新疆Xinjiang
西藏Xizang
青海Qinghai
甘肃Gansu
宁夏Ningxia
内蒙古Neimenggu
北京Beijing
黑龙江Heilongjiang
吉林Jilin
辽宁Liaoning
山东Shandong陕西
Shanxi
四川Sichuan
湖北Hubei
安徽Anhui
江苏Jiangsu
浙江Zhejiang
重庆Chongqing
云南Yunnan
贵州Guizhou
湖南Hunan
江西Jiangxi
广西Guangxi
广东Guangdong 台湾
Taiwan
海南Hainan
山西Shanxi
天津Tianjin
河南Henan
福建Fujian
ABB companies stand for quality in China
香港Hong Kong
上海Shanghai
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China DCS Industry Growth Sorted by CAGR
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China DCS Market – Chinese Suppliers
Chinese Suppliers
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DCS Market Split by Type of Supplier
30% of the market is controlled by Chinese Suppliers (including
Xinhua)
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Domestic and International Suppliers by Industry
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ZheJiang SUPCON Technology Group
Founded in 1993 Based on ZheJiang 1200 employees 700 million contract amount, 2004 7 subsidiary companies 12 filial companies 3000 customers
30 Cities in China SINOPEC PETROCHINA ShouGang Group Bao Steel
South Africa East South Asia
Industry area Steel Oil & Chemical Electric power
Active in Fairs in the US, India and Pakistan
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Hollysys
Originally a department of the Sixth Research Institute of the Ministry of China Information Industry Founded in March 1993
Now has become a group of several corporations including Hollysys Automation, Hollysys Information Technology, Hollysys Electric Technology, etc. 600 Employees (200
Engineers) 1500+ Successful Projects
http://www.hollysys.com
Has the goal to be listed in the US
Nuclear Power Technology
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Xin Hua
Full Name - Shanghai Xin Hua Control Technology (Group) Co., Ltd Found in Shanghai, Feb.1985
through a collective effort from DEH (Digital electro-hydraulic system) community led by concerned authority
Started with DEH & MEH product development for Power Plant application
Biggest DEH manufacture in the world
Extended to DCS business Biggest local DCS vendor in China
Headquarter based in Shanghai and consists of 12 daughter companies
Sales in 2003: RMB 630M (US$ 76M)
Utility Business Bought by General Electric 2004
The remainder of the company have developed a new DCS
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Where are the Chinese Supplier’s Today?
Low to Medium end DCS Market Strongest in Power, Chemical, Cement Basic Technology They have started to adopt new technology
They get helped by the fact that there is a trend towards more commodity technology
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EPCs and End User expands internationally
The Chinese Suppliers are following the EPCs’ and End Users’ expansion outside China They have good relations and experience
Cement SINOMA invests in Middle East
Oil & Gas PetroChina, SINOPEC and CNOOC are investing in Central Asia
and Africa
Power China finances Power Plants in India and South East Asia Suppliers are following the Chinese Boiler Suppliers
Chinese Suppliers are very strong when following their EPCs and End Customers abroad
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Strengths of the Chinese Suppliers
Large Domestic Market They can learn on their home land They have the latest technology in all fields
Low Cost Labor Growing from simpler products to more advanced
China is also trying to move from pure labor low cost labor jobs to higher added value jobs
Hungry “employees” Preferred by government
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How to beat the Chinese Suppliers?
Industry Know-how Utilize the broad and long
experience Advanced Technology and
Applications Move towards the higher end
of the value chain Advanced Foreign Technology
and good Quality Suppliers can get a premium price
Cost Focus You need to have cost focus in
order to beat the competition
Localization To better understand the
market To lower the cost To take advantage of the local
talent
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Trends in China
Environmental Protection Sustainable Energy Sources - Wind and Solar Energy Bio Fuel Water & Waste Water Treatment CO2 Emission Reduction
Energy Efficiency China needs to increase the efficiency of its power generation and
distribution since it is already building the generation capacity of UK every year
Safety To prevent Coal Mines accidents To prevent Chemical and Petrochemical Accidents CFDA Regulations (Pharmaceutical and Food)
Productivity Optimization of production