ABB China at new heights
-- CNILX celebrates 10th anniversary
By Yayu Wu & Enid Chen
Photos by Liang Wei

"厦门ABB低压是我们在中国最早的合资企业之一, 回顾十年前的今天, 我们做了一个正确的决定. " 11月27日在厦门ABB低压电器设备有限公司十周年庆典仪式上, ABB(中国)有限公司董事长兼总裁路义普说道.

Name: Peterer Leupp
Nationality: Swiss
Position: Chairman and President of ABB (China) Limited since 2001

ABB, the leading power and automation technology company, celebrated the ten-year anniversary of one of its most successful and largest operations in China - ABB Xiamen Low-Voltage Equipment Co., Ltd, November 27.

"I could not dream that I would be standing here ten years later, leading one of the world's largest low-voltage manufacturers. Such success does not happen accidentally nor without the support of many, many people. We committed to China early, striving to better meet the needs of our valued customers, to improve their operations while lowering environmental impact, " said PC Gay at the celebrating ceremony, President of ABB's low-voltage factory in Xiamen.

"Looking back, the board of directors agrees that it was the right decision to set up this joint venture, as it has grown to be one of China's major players in low-voltage products and systems, " said Peter Leupp, Chairman and President of ABB in China.



Coach and trainer of ABB China

Q: ABB is going to give birth to the fifth child here in Xiamen. Are there going to be more here in Xiamen? How is the four existing companies' performance?
A: I think we are playing the role of parents. When the wife has just given birth to a new kid, you won't start to think about the next one immediately. We will first raise the present one and then think about the next.
The four existing companies are now performing very well. Two of the companies here including the Low Voltage Equipment Company in Xiamen are not only among the top 20 companies in China within the general electric industry, but they are rising increasingly to the top list of the world. The other two companies are younger, but they are performing well. However, they need some time to grow as strong as their older brothers.

Q: ABB has got more than 20 enterprises in China. Some describe you as the gardener while some consider you as the head of a family. What would you consider yourself to be, a gardener or a parent?
A: I guess it is neither. I see myself more as a coach and a trainer. I see my role less as planting a tree than as deciding where and when to plant a tree. This has much to do with outlining our long-term strategy in China. On the other side, we have a lot of young and talented Chinese people who are in the management team. We have the responsibility to coach and train these people. We bring in our international experience of running multi-national companies for many years and the international management philosophies as well. Now more than 99 percent of our employees are Chinese and quite a few are in management positions. For sure, I will also be replaced by a local Chinese someday.

Q: As a coach of so many ABB companies in China, it must be a very tough job. Do you think it is necessary to build so many companies in China?
A: First of all, it's not only me who is managing the companies. We've got a big team sharing the load. It's not our intention to create a large number of companies, but rather we are trying to grow as much as possible with the existing companies. Where there are opportunities for business growth in places we are not already present, we will then build new companies.



China to become the second largest market

Q: What is the position of ABB China within the group?
A: We have a very strong and growing position within the group. This can be easily seen from the figures, because China's portion of worldwide sales is growing every year. A few weeks ago, the board of directors of ABB global group had a meeting in Beijing, which also shows the importance of China. China is currently ABB's third largest market in terms of sales following the US and Germany. It's our target to overtake Germany as the second largest market in the near future.

Q: What are ABB China's strategies to realize the goal of becoming the second largest market worldwide?
A: To do that, we plan to invest at least another USD 100 million and hire 5,000 more people across the country by 2008. We will continue to pay attention to the local research and development. For example, ABB Xiamen Low-Voltage Equipment Company is now taking on R & D tasks from our leading technology center in Europe. This is the first R & D unit in Asia for low-voltage switchgears. We will also build up a procurement team to take up purchasing in China to reduce the cost. We are going to grow by 20% annually.

Q: Compared to other cities, what are the key factors for ABB's successful growth here in Xiamen?
A: We have a friendly environment here. The team's hard work and perseverance have greatly contributed to the growth. We also owe a great deal of our success to the strong support we get from the Xiamen Municipal Government. I'm always impressed by the positive foreign investment environment here and the service-minded Xiamen government. Based on these factors, we will continue to invest here.

Q: Besides the huge business opportunities, what are the challenges that ABB is faced with?
A: For sure, there are challenges for ABB. When we manage to grow, we need good and suitable people. The greatest challenge is for us to act fast enough to recruit and train them into professional staff. But I'm absolutely convinced that we can find excellent people here in Xiamen.



Affinity with Xiamen

Q: Mr. Leupp, have you ever counted how many times you have been to Xiamen and will you consider settling down here?
A: Actually no, but I come to Xiamen very often. Today, when I was coming to the exhibition center along the beautiful Island Ring Road, it was easy for me to dream about living in Xiamen. I said it would be very nice to sit back in a chair on the balcony facing the beach. But you know sometimes reality in life looks a bit different. So my wife and I will continue to be visitors here, but we will probably not move to Xiamen.

Q: Among your frequent visits here, which trip was the most memorable and impressive?
A: I cannot say which of my visits was the most exciting, but generally speaking every time I come here, it is exciting and very nice. The most relaxing one was probably when I was together with my wife here enjoying sightseeing and the beauty of the city rather than for business purposes. It is always very nice to be back because the ABB companies are performing very well and I have become close to many friends here in Xiamen.