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ABB: localization supports globalization

abb, the leading global power and automation manufacturer, announced its performance in the third quarter of this year: the order volume increased by 18%, the sales increased by 2%, and the net income reached 774million US dollars. In the Asian market, orders increased by 26% in the third quarter, especially the last basic orders. This growth is mainly from the power system business department, followed by the process automation and discrete automation and motion control business department. Orders in the Chinese market increased by 13% in the third quarter, and almost all business departments maintained double-digit growth

since 2007, China has maintained the position of ABB's largest market in the world. According to the data of last year, the sales from China accounted for 13% of ABB's total global sales

for management experts, this should not be the most critical. In the past few years, the huge Chinese market has changed this global company. It is carrying out rapid changes in localization and supporting globalization here. The outside world has noticed that unlike most multinational companies, which also regard China as a vast sales market or even just a low-cost production base, abb has quickly and orderly transferred its high-quality resources, including R & D, services, procurement and production lines, to China. These resources not only serve China, but also serve the broader Asia Pacific and even global markets. Taking R & D as an example, abb China R & D center is the most important part of ABB's global R & D network. Its automation technology laboratory and power technology laboratory are two global R & D laboratories whose work serves the global market

in ABB's global business development plan, China is also one of the most important procurement markets. In 2009 alone, ABB's local procurement in China reached US $2.6 billion. To meet ABB's global production needs, abb China has also set up a procurement and supply chain management business unit

in the last two years, abb has built several global production bases in China. At the end of last year, ABB's world's largest transformer component production base was built in Hefei Economic and Technological Development Zone. The newly introduced ABB's world leading oil paper capacitive bushing production technology was also put into production in the new base. The new base is the latest expansion project of ABB Transformer Co., Ltd. power component business department in Hefei. Mu He, head of ABB power product business department in North Asia and China, commented that the new base will become ABB's largest transformer component production base in the world. At the same time, the new base will be based in China, serve the world, face ABB's overseas market, export advanced products and equipment, but there is a market and need to be prepared

at the beginning of this year, a new global production base of ABB's instrument business in Tianchang City, Anhui Province was also put into operation; At the end of April, Xi'an ABB power capacitor Co., Ltd. celebrated its 10th birthday. This joint venture is ABB's largest production base of high-voltage power capacitor products, which is in urgent need of improvement and upgrading of many new material construction products

the latest development is that on November 18, abb quality control system and paper imaging system factory was officially opened in Pudong New Area, Shanghai. Boke, head of ABB process automation business department in North Asia and China, said: emerging markets such as China, Brazil and Indonesia have become the growth engines of the global paper industry. The demand for various paper automation technologies is higher than that in other regions, leading the new trend of demand and development of the pulp and paper industry. The completion of this new plant is the latest initiative of ABB group to optimize the global business configuration. We will respond more quickly to the needs of Asian and global markets and continue to provide global customers with first-class products and services

make growth and cost complement each other

interview with Fang Qin, President of ABB North Asia and chairman and President of ABB (China) Co., Ltd.

BusinessWeek: how has ABB grown in the Chinese market in the past two years

Fang Qin: ABB's growth in China is very fast. In 2009, despite the impact of the global financial crisis, ABB's sales in China still reached US $4.3 billion, an increase of 4.1% over 2008, accounting for 13% of ABB Group's global sales. It continues to maintain China's leading position as ABB's largest market in the world. In the first half of this year, ABB's businesses in China also performed strongly, with the order volume increasing by 15% compared with the same period in 2009, especially the automation business. In 2009, ABB's wind power business in China increased by more than 125% over the previous year, and its railway business in China increased by more than three times over the previous year

BusinessWeek: in recent years, what changes have ABB made to meet the market demand for the rapidly changing Chinese market

Fang Qin: in order to meet customers' needs, two years ago, we also established a unified service team, hoping to provide customers with a fixed interface through which customers can obtain services in all relevant aspects

in terms of R & D, China's R & D center has become ABB's global R & D center and an important part of the global R & D team. Our current strategy is to further develop China's R & D team and provide services for the Chinese and global markets

BusinessWeek: the Chinese market is huge, but it is also full of fierce competition and rapid changes. How can ABB make rapid changes in response to changes to meet new challenges in the future

Fang Qin: China is a very large market. At the same time, the Chinese market changes very fast, which is changing with each passing day. On the one hand, we have set up different enterprises in this very large territory to meet local needs. We have more than 30 enterprises in China, many of which are joint ventures; On the other hand, the headquarters is very concerned about the Chinese market, has been deepening the strategy of taking root in China and serving China, and can quickly set up global business units such as the shipping department and the metal department in China, and build the Chinese R & D center into an ABB global R & D center. With the changes in the Chinese market and the company's global development, we hope to use the ring stiffness testing machine to achieve the new goal of in China, for China and the world. In the future, we need to pay attention to both cost and growth, which complement each other. We should not only control cost growth, but also promote the growth of the whole business, not only for ABB China, but also for the world. We should shift from product orientation to market orientation. From a global perspective, we have established a vertical business field to serve the vertical business industry. We do not want to completely change the structure and nature of the company, but to better make full use of ABB's advantages in different product lines and fields, combine them, and more effectively use our advanced technology to serve customers and vertical industries

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