The competition in China's domestic industrial automation industry is fierce, and foreign manufacturers of industrial automation equipment and products still dominate the major market for upstream product supply in China. Let's take a look at which foreign industrial automation companies are the most profitable.
1.Siemens AG (Germany)
Siemens AG (FWB: SIE, NYSE: SI) is a global leader in the field of electrical and electronic engineering. Founded in 1847 by Werner von Siemens, its international headquarters is now located in Munich, Germany. As a listed company on both the Frankfurt Stock Exchange and the New York Stock Exchange, Siemens achieved a total revenue of 6.14 billion euros in China in 2013 and employed nearly 32,000 people in the country.
In the industrial automation control industry, Siemens holds a dominant position. Its widely used industrial control products include PLCs, frequency converters, touch screens, modules, sensors, low-voltage electrical appliances, servo motors, and industrial computers. Meanwhile, Siemens is the world’s largest supplier of products, systems, solutions, and services in the fields of industrial automation and building technology, serving various sectors of China’s industry.
With operations in over 190 countries worldwide, Siemens owns approximately 600 factories, R&D centers, and sales offices globally. Its business focuses on four core areas: Industry, Energy, Infrastructure & Cities, and Healthcare. The company’s global business operations are managed by 13 business groups, including Siemens Financial Services GmbH and Siemens Real Estate Asset Management Group. Additionally, Siemens holds a stake in a joint venture—Bosch-Siemens Home Appliances Group.
Currently, it owns 15 brands worldwide (including Siemens and Bosch) and operates 39 factories across 27 regions globally, ranking as the largest home appliance manufacturer in Europe and the fourth-largest in the world. As competition in the global home appliance market becomes increasingly fierce, this company—with a global business orientation and a focus on high-end home appliance production—has begun to turn its attention to China’s increasingly mature market.
Ranked among the world’s Top 500 enterprises, ABB Group is headquartered in Zurich, Switzerland. Formed in 1988 by the merger of two international companies with over 100 years of history—ASEA (Sweden) and BBC Brown Boveri (Switzerland)—the two predecessor companies were founded in 1883 and 1891 respectively.
ABB is a leading provider of power and automation technologies. Its technologies help customers in the power, utility, and industrial sectors improve performance while reducing adverse environmental impacts. With operations in over 100 countries and 117,000 employees worldwide, ABB achieved sales of USD 32 billion in 2009. In 2012, its business performance in China saw steady growth in sales revenue, exceeding USD 5.2 billion.
ABB offers an extensive product portfolio, including a full range of power transformers and distribution transformers, high/medium/low-voltage switchgear, AC and DC power transmission and distribution systems, power automation systems, various measuring devices and sensors, real-time control and optimization systems, robot hardware and software as well as simulation systems, energy-efficient motors and drive systems, power quality, conversion and synchronization systems, and fuses and switchgear for power system safety. These products have been widely used in industrial, commercial, power, and utility sectors.
ABB’s cooperation with China dates back to 1907, when it supplied China with its first steam boiler. In 1974, ABB officially established a China Business Unit in Hong Kong, followed by a permanent office in Beijing in 1979. In 1994, ABB moved its China headquarters to Beijing, and formally established ABB (China) Limited in 1995. To date, ABB has 15,300 employees in China, serving 30 local enterprises and 40 sales and service branches across 60 different cities. In 2009, ABB’s sales in China reached USD 4.3 billion, maintaining China’s position as ABB’s largest global market. ABB attaches great importance to attracting, developing, and retaining talents, and actively undertakes social responsibilities, making it one of the most respected employers.
Through close cooperation with local partners in China, ABB has established strong production bases in power transmission and distribution, automation products, and systems. Its business covers a complete range of power transformers and distribution transformers, high/medium/low-voltage switch applications, electric drive systems, and motors. These products have been widely used in the industrial and power industries. ABB pursues outstanding quality, and its enterprises and products have become benchmarks in the industry. ABB’s capabilities in engineering and project management are demonstrated in multiple fields, including metals, pulp, chemicals, life sciences, automotive industry, power industry automation, and building systems.
Emerson is a diversified global manufacturer. By integrating technology and engineering across its businesses—including Process Management, Industrial Automation, Network Power, Climate Technologies, and Commercial & Residential Solutions—Emerson provides customers with innovative solutions. China is one of the fastest-growing markets for Emerson’s global business and has been Emerson’s second-largest market (after the United States) since fiscal year 2002. Currently, Emerson has established over 40 enterprises in China, including more than 30 manufacturing facilities and nearly 20 R&D centers.
The company is organized into five business segments:
- Process Management: Provides measurement, control, and diagnostic functions for automated industrial processes that produce food, fuel, machinery, power, and other products.
- Industrial Automation: Delivers integrated production solutions for global industries.
- Network Power: Supplies power and environmental control for telecommunications systems, data networks, and critical commercial applications.
- Climate Technologies: Enhances residential and commercial comfort, and improves food safety and energy efficiency through air conditioning and refrigeration technologies.
- Appliances & Tools: Offers motors tailored for various applications, as well as home appliance and integrated home solutions.
Headquartered in Milwaukee, Wisconsin, USA, Rockwell Automation is a multinational industrial automation company that provides first-class power, control, and information technology solutions for the manufacturing industry.
Rockwell Automation integrates well-known brands in the industrial automation field and is committed to creating comprehensive automation solutions to help customers improve productivity. These brands include Allen-Bradley (control products and engineering services) and Rockwell Software (industrial control software). The company is also a leading provider of customer relationship management (CRM) technologies and application systems, helping enterprises manage customer relationships more effectively.
Global technology support and customer service are vital components of Rockwell Automation’s operations. The company has nearly 5,600 distributors, system integrators, and agents in 80 countries worldwide. Cooperation with reliable local companies in distribution, software, and products has significantly strengthened its global capabilities. Its well-known brands and strategic partnerships enhance its ability to provide high-quality and reliable industrial solutions worldwide.
Schneider Electric SA is one of the world’s Top 500 enterprises. Founded in 1836 by the Schneider brothers, it is now headquartered in Rueil-Malmaison, France. As a global leader in energy management, Schneider Electric provides comprehensive solutions for the energy and infrastructure, industrial, data center and network, building, and residential markets in over 100 countries. It holds leading positions in markets such as energy and infrastructure, industrial process control, building automation, and data centers and networks, and also has strong market capabilities in the residential application sector. In fiscal year 2012, Schneider achieved a total global revenue of 24 billion euros and employed over 140,000 people in more than 100 countries.
Schneider Electric delivers comprehensive solutions to the energy and infrastructure, industrial, data center and network, building, and residential markets across 100+ countries. It leads in markets like energy & infrastructure, industrial process control, building automation, and data centers & networks, while also boasting strong capabilities in residential applications. Dedicated to providing customers with safe, reliable, and efficient energy, Schneider Electric attaches greater importance to its development in China due to the successful expansion of its business here, and is willing to contribute to China’s opening-up and modernization through further business cooperation.
From power generation and transmission to consumption, Schneider Electric offers customized, efficient solutions for various industries. By 2003, global investment in upgrading and transforming the world’s power transmission and distribution networks was projected to reach USD 13 trillion. Energy consumption and electricity use in various facilities account for 1/3 of global energy consumption and 70% of total electricity use respectively—these facilities are also part of Schneider Electric’s target markets. If these diverse markets can address energy waste at the facility level, their key challenges such as energy management and carbon emissions will be alleviated and resolved. This is precisely the goal of Schneider Electric’s energy management solutions: to make building and operation management more efficient and achieve energy savings of up to 30%.
Schneider’s turnover exceeded 20 billion euros for the first time in 2010. In 2011, while continuing to increase revenue and reduce costs, the company planned to offset part of the rising costs of raw materials through a price increase of approximately 1%. According to Schneider Electric’s 2010 performance report, its sales (including Areva’s power distribution business) reached 20.228 billion euros that year—a record high—with an annual net profit of 1.720 billion euros, a year-on-year increase of 109%.
As a world-renowned leader in measurement, industrial automation control, and information systems, Yokogawa Electric Corporation (YOKOGAWA) has been committed to providing customers with cutting-edge professional technology, supporting them in reforming to improve operational efficiency, and contributing to industrial development since its establishment in 1915.
Yokogawa was one of the first foreign enterprises to enter China in the industry. It set up a Beijing Representative Office in 1979 and established its first joint venture in China—Yokogawa Xiyi Co., Ltd.—in 1985. In October 2002, it founded the fully-owned “Yokogawa Electric (Suzhou) Co., Ltd.” in the Suzhou Singapore Industrial Park. With a total factory area of 135,000 square meters, the first production plant (put into use at that time) covered 25,000 square meters, manufacturing flowmeters, recorders, and other products. The flow calibration system installed here can calibrate flowmeters with a diameter of up to 2.6 meters, making it the world’s largest-scale calibration system. On January 1, 2006, “Yokogawa Electric China Trading Co., Ltd.” was established. As a core enterprise of the Yokogawa Group with sales, market development, and engineering technical services capabilities, it works in collaboration with 8 other existing Group companies active in China’s domestic market to vigorously expand the Chinese market.
On February 1, 2008, to expand its business in China’s industrial automation sector and gain a larger market share, the Yokogawa Group integrated the businesses of three of its related Chinese companies and established a new legal entity—“Yokogawa Electric (China) Co., Ltd.” As the group’s umbrella company in China, it aims to meet the diversified needs of China’s industrial automation market by strengthening functions such as sales, technical support, engineering, and after-sales services.
To demonstrate its commitment to the reliability, safety, and forward-looking nature of its system products, Yokogawa has put forward the “VigilantPlant” corporate philosophy. In the measurement field, it provides solutions for analysis, quality management, sensors, and operation terminals; in the control field, its offerings cover production control, safety management, data collection, and logical control; in the optimization field, it includes production management, advanced control, asset management, and operation support. Guided by this philosophy, Yokogawa leverages cutting-edge technology to continuously develop new products and strives to make greater contributions to industrialized society.
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