Agilent Technologies Inc, a global technology leader in communications, electronics, life sciences and chemical analysis, vows to tap the lucrative local market by investing more than US$100 million in China over the next few years.
"China represents significant growth opportunities for Agilent as it has become the second largest market for us," said William Sullivan, Agilent's executive vice-president and chief operating officer, in an interview with China Daily.
"We see business potential especially in the wireless communications as well as consumer electronics industries," he said.
Sullivan is to replace Ned Barnholt as Agilent's president and CEO on March 1.
Figures showed that China's electronics industry is growing at approximately 20 per cent a year. And it is projected that by 2006, 250 million mobile phones will be manufactured in China annually.
He said he believed the trend will continue thanks to the rapid development of China's communications market.
Figures from the Ministry of Information Industry showed that China was expected to notch up 520.5 billion yuan (US$62.7 billion) in telecommunications revenue by the end of last year, representing a growth of 13 percent from the previous year.
The sector has so far recruited 334 million mobile phone subscribers and 316 million fixed-line users.
"We are very anxious about the launch of the third generation (3G) of wireless telecommunications in China," he said.
Sullivan also said he believed that China's holding of the Olympics in 2008 will be a strong shot in arm for the country.
The executive vice-president last Friday announced the establishment of a joint venture between its test and measurement division and the Chengdu-based Qianfeng Electronics Corporation.
Investment for the joint venture, Agilent-Qianfeng Electronics Technologies (Chengdu) Co Ltd, currently stands at US$10 million. Agilent commands a 60 percent stake in the firm, with Qianfeng holding the rest.
The joint venture will be part of Agilent's Electronics Products and Solutions Group and will develop and manufacture testing equipment.
"The products will mainly target the Chinese market, but will also be exported outside China," Sullivan said.
"We see an excellent synergy between the two companies in regards to customer relations, research and development and facilities," he said.
According to Max Yang, vice-president and general manager of the newly-established company, it will include all major areas of business, such as manufacturing, research and development and marketing.
"This is also part of our global testing and measurement strategy. Also, forming a joint venture will allow us to meet local demand," he said.
The joint venture is among the first investments made under Agilent Technologies China Holding Co Ltd, an investment company formed by Agilent last Wednesday to consolidate and accelerate its business growth in China.
"Through the formation of the new holding company, we are combining our different entities to enhance our presence and achieve operational efficiency. We are also building a platform for further investment in China," said Agilent's chairman, president and CEO Ned Barnholt.
Wayne Chan will oversee the operation and development of the holding company.
"The establishment of Agilent Technologies China Holding Co Ltd is another big step in Agilent's long-term plans for China," said Chan.
"We expect to become more involved in a range of new activities that may include strategic investments and participation in joint ventures. Our ultimate goal is to position Agilent as the most innovative high-growth, high-tech company in the region."
Agilent's businesses in China employ 1,100 people and are mainly centered in Beijing and Shanghai. The company saw net revenue reach US$7.2 billion in fiscal year 2004.
(China Daily January 31, 2005)
