China's macro-economic control policy is favorable for international companies as the government has been closing down a large number of small factories that are wasting energy and polluting the environment.

Out of 2,000 steel plants in China, 1,500 are small ones. "These small factories have never been clients to ABB," said Peter Leupp, chairman and president of ABB China.

Peter Leupp made these remarks in an exclusive interview with Xinhua after the inaugural ceremony of the ABB Group's New Corporate Research Center Wednesday.

The center is part of ABB's corporate network of labs in the United States, Europe and Asia, which will continue the company's long tradition of research at ABB factories around the country. ABB is the largest robot manufacturer in the world. Recently, its first made-in-China robot went off the production line in Shanghai.

"We will at the beginning focus on areas which are top priority for the Chinese government. Saving energy through higher efficiency of industry, more power production, and ultra-high-voltage transmission at 800 kv DC, as well as 1,000 kv AC," he said.

Peter Leupp said that each year, ABB spends around five percent of its revenue on research and development, which in 2004 was about 1 billion US dollars. Much of that investment is pouring into China to help nurture local talent in collaboration with well-known Chinese institutions like the Qinghua University.

ABB China plans an average growth of 20 percent per year, new investments of at least 100 million US dollars by 2008, and recruitment of 5,000 new employees by 2008, he said.

Currently, ABB Group operates in about 100 countries, with a total staff of 102,000. To date, ABB has opened 21 factories including 17 joint ventures in China, with an investment of 650 million US dollars. By 2008, there will be another five ABB factories in China.

Source: Xinhua