GEIS moves headquarters to Shanghai
( 2002-07-24 09:56 ) (1 )

General Electric Industrial Systems (GEIS), announced on Tuesday it is moving its Hong Kong-based Asia Pacific headquarters to Shanghai to better serve the fast growing market in China.

Richard Pease, GEIS global vice-president, unveiled the company's aggressive growth plans for its China operations, with a target of doubling revenue year on year by 2005.

"We think China is the right place for GEIS to put its resources, for it is the world's biggest growth market with the biggest opportunities," Pease said.

GEIS estimates the market volume for industrial systems in China will reach US$12 billion within the next several years. It wants to be a part of this market.

Pease said the decision to move was made after China's entry into the World Trade Organization in December. GE, the parent company, believes China is one of the biggest potential markets in the world.

To support its growth, GEIS will take a number of critical steps, including the introduction of a total of 25 new products, and launching and expanding its service and solutions business.

"We will double our distributor base and increase our sourcing in China," he said.

The move is GE's third step to relocate its subsidiaries' Asia Pacific headquarters to Shanghai, after GE Lighting and GE Plastics.

James Fisher, president and chief executive officer of GEIS Asia Pacific Operations, said the company is looking for manufacturing partners through acquisition of Chinese companies.

"Our final target is to produce products in China instead of just purchasing parts," Fisher said, but he didn't give the details of the company's investment and acquisition plans.

Next year, GEIS will set up its regional research and development centre in Shanghai's Zhangjiang High-tech Park to design industrial system parts first and then finished products, Fisher said.