Comau expects strong China sales growth for tooling, robots
Comau S.p.A., a Fiat Group affiliate that supplies robots and production tooling to automakers, expects its sales in China to grow at least 20 percent this year and in 2014.
The growth will be propelled by strong demand for body welding, powertrain assembly and metal cutting equipment from customers such as General Motors, Volkswagen AG, Ford Motor Co. and Jaguar Land Rover.
"Compared with last year, our revenue can increase 20 to 25 percent this year," Stefan Sack, CEO of Comau's China operations, told Automotive News China this month in Shanghai.
In China, GM and Volkswagen each have four vehicle assembly plants and several engine plants under construction. Ford is building two new assembly plants, and Jaguar Land Rover is building its first vehicle assembly and engine plants in China.
With more orders coming from its clients, Comau plans to boost sales at least 20 percent in 2014, said Sack.
In 2012, Comau's China sales totaled 220 million euros (1.8 billion yuan), or 15 percent of its global sales. "The percentage will go up because this market is still growing," Sack added.
Despite the company's strong growth in China, Sack said he has some concerns about China's fast-growing automotive production capacity.
China's economic growth has slowed to 7.6 percent in the second quarter of this year, down from 7.9 percent in the fourth quarter of last year. But global automakers are still aggressively adding plant capacity.
"Companies like GM and Volkswagen have very ambitious plans to expand in China and we'll have to see what the market can absorb," Sack said.
Comau entered China more than ten years ago. It currently has plants in Shanghai and Kunshan as well as engineering offices in Chongqing, Shenzhen and Dalian.
"Compared with last year, our revenue can increase 20 to 25 percent this year," Stefan Sack, CEO of Comau's China operations, told Automotive News China this month in Shanghai.
In China, GM and Volkswagen each have four vehicle assembly plants and several engine plants under construction. Ford is building two new assembly plants, and Jaguar Land Rover is building its first vehicle assembly and engine plants in China.
With more orders coming from its clients, Comau plans to boost sales at least 20 percent in 2014, said Sack.
In 2012, Comau's China sales totaled 220 million euros (1.8 billion yuan), or 15 percent of its global sales. "The percentage will go up because this market is still growing," Sack added.
Despite the company's strong growth in China, Sack said he has some concerns about China's fast-growing automotive production capacity.
China's economic growth has slowed to 7.6 percent in the second quarter of this year, down from 7.9 percent in the fourth quarter of last year. But global automakers are still aggressively adding plant capacity.
"Companies like GM and Volkswagen have very ambitious plans to expand in China and we'll have to see what the market can absorb," Sack said.
Comau entered China more than ten years ago. It currently has plants in Shanghai and Kunshan as well as engineering offices in Chongqing, Shenzhen and Dalian.
