Honeywell plans expanded input
By Chen Qide (China Daily)
Updated: 2004-10-19 08:45

Honeywell will continue to invest in China to expand its business, says newly-appointed Honeywell China President Shane Tedjarati.

"We have invested more than US$500 million in China, but our commitment to the Chinese market means that investment will be expanded in the future," said Tedjarati.

After he took office in September, Tedjarati signed many investment papers of investment during the next two weeks.

"Investment in the company - which is not included in the US$500 million - happens every day," he said. He did not give any details.

However, according to insiders, the company is looking for partners in co-operation to expand into the Chinese market by launching more new projects.

They say they believe that China will provide many opportunities for foreign investors during the next five years. These will certainly include Honeywell, for many State-owned enterprises are being required to reform ownership. A huge amount of State assets will be sold.

David Cote, chairman and chief executive officer of Honeywell, said the appointment of Tedjarati reflects Honeywell's determination to grow with the Chinese market.

"China represents a significant growth opportunity for Honeywell and is an essential part of our globalization strategy," Cote said.

Honeywell's Asia-Pacific head-quarters will operate in November from Shanghai's Zhangjiang where its US$30 million research and development centre, the largest in Asia, is located.

Next May, its China headquarters will also be relocated to Zhangjiang to combine with the Asia-Pacific headquarters, he said.

"Moving these operations to Shanghai indicates that the stage is really set for the company," he said.

Tedjarati said the biggest problem was the challenge of human resources.

"We feel it is very difficult to find suitable resources, especially senior managers, " he said.

His ambition is to make Honeywell enterprises in China local and competitive with Chinese counterparts.

Last year, Honeywell generated sales of US$560 million in China, contributed to by China-based manufacturers and the selling of products manufactured in other countries.

"We will keep sales growing at a double-digit rate," Tedjarati said.

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