Rockwell to profit from upgrade

Rockwell Automation hopes to benefit from the growth of the Chinese market, as the country is moving its industrial value chain upward instead of only relying on its manufacturing strength and labour resources.

"China is a very important market for us, one that we are absolutely committed to," said Scott Summerville, president of the US industrial automation giant's Asia Pacific operations. China Daily reported Monday.

He made the remarks in an interview before participating in the China Business Summit organized by the World Economic Summit meeting in Beijing yesterday and today.

Summerville said his company had achieved more than 30 per cent growth this year over the same period of last year and predicted that Rockwell will maintain an average of 30 per cent growth every year at least to 2008.

China's need to upgrade its manufacturing technologies and management skills and determination to move up in the value chain from manufacturing provides huge opportunities for the US company.

Summerville said that China should recognize that the low cost of labour may not be a "permanently sustainable competitive advantage" and upgrading the information sector should be a key for China and Chinese enterprises.

He said that while Chinese manufacturers are known for their product development, they should make more innovations in the manufacturing process and supply chain integration.

Rockwell can play an important role in helping Chinese companies upgrade their management skills on return on investment, from which companies can make the best of their assets with increasing efficiency, lower costs, higher security, and faster delivery to market.

The US business will focus on vertical sectors including metals, automotive, food and beverage, power and energy and pharmaceuticals.

Besides expanding local teams and raising their quality in serving customers, Rockwell opened an original equipment manufacturer centre in Shenzhen to provide solutions to Chinese manufacturers.

The company opened a new branch in Qingdao in East China's Shandong Province to sell products and provide service and support to customers in the province, which has become one of the most important manufacturing bases in China.

Rockwell already has five employees working at the 16th branch in the country, but Summerville said the number will soon double.

A seminar named "Complete Automation on the Move" has also been held in the city to promote Rockwell's solutions to participants from the province and the country.

Summerville said Rockwell has recruited 100 new employees in China this year to take the total number to more than 600. The company will continue to recruit local work force to meet market demands.

(China Daily)