GE says China sales growing at 18-20 percent annually
( 2002-02-27 15:37 ) (7 )

General Electric Co expects sales in China to keep expanding at around 18 to 20 percent a year from about US$1.5 billion in 2001, the top China executive of the US firm said on Wednesday.

Growth would be driven primarily by GE's medical, silicon, plastics and aircraft engine businesses, GE (China) chief Steven Schneider told reporters after signing an agreement to set up a US$12 million research centre in Shanghai.

``We're growing in China at about 2.5 to three times GDP, which is about 18-20 percent, which is outstanding,'' he said.

General Electric, the world's largest company by market capitalisation, posted sales of US$1.5 billion in China last year and aimed to boost that to between US$4 billion and $5 billion by 2004 or 2005, Schneider said.

He said GE would provide engines for the 30 Boeing 737 commercial aircraft China has agreed to buy over the next four years.

Chinese airlines now use about 670 GE engines, he said.

Schneider said General Electric would continue to invest in a range of industries in China, building upon existing investment of US$1.5 billion in plant equipment.

The US firm announced on Wednesday it was sinking at least US$12 million into a new research and development centre in Shanghai, which is expected to begin operations in 2003 and employ 400 staff.

GE's shares closed at US$38.75 in New York on Tuesday, down 1.15 percent.