September 10, 2007 -- ThyssenKrupp AG, a German-based power plant, expects that its sales in China would increase 10% per annum, especially in sectors like elevators, automotive parts and industrial services, said the group's China senior operation executive last week. The steel business, which contributes more 50% to its sales, may fall below the expected increase average as no large-scale investment could be made due to restrictive policies on foreign companies' participation. At present, foreign firms can only control steel processing companies, but are prohibited from taking a majority stake in steel production companies. Alfred Wewers, CEO of ThyssenKrupp, said they will expand when permitted, which may help them export from China as its current output in China is mainly for domestic market.
However, the output of its two mainland factories can hardly meet the demand of 60,000 elevators and escalators in the Chinese market, which accounts for almost 20% of the global market, said Afred. ThyssenKrupp built its first plant in producing elevators and escalators in 1995 in China. Its second plant starts operation last year to meet the increasing demand in China.
Source: China Knowledge Press
