Flowserve Marches Into China's Energy Market
The new plant of US-based Flowserve Corporation, a giant of the world's flow motion and control products and related services, was opened on April 17 in Suzhou Industrial Park as the first manufacturing base in China, marking an important step in Flowserve's 20 years business operation in China and its implementation of global strategy.
The 200-year-old Flowserve is a major supplier of pumps, valves, and sealing products and related services for petroleum, natural gas, power generating, chemical industries, and water works. Its customers include some of the large-scale Chinese energy enterprises such as Sinopec and Petrol China. Flowserve's sales revenue in China rose from 9% of its global sales few years ago to 14% last year, which gives Flowserve reason enough to set up a manufacturing center in China.
According to Mr. Lewis kling, President and CEO of Flowserve, the 15,000m2 Flowserve Suchou plant will provide localized and procured products and services to back up the business in Beijing, Shanghai, Dalian, and Shenzhen, with the ultimate aim to become a global manufacturing center through a 3-year expansion plan.
The establishment of Suzhou plant is the first step of Flowserve's China strategy. The cost-effective investment in China is not the only factor in implementing the strategy, and more importantly, Flowserve is motivated by the fastest growing Chinese market to invest more in China than anywhere else in the world. The business expansion by Flowserve will also take the forms of setting up joint ventures, cooperation, merging, and acquisition, etc.
April 18, 2007