UPDATE 1-United Tech eyes Chinese air-con acquisition http://today.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?view=CN&storyID=2006-06-08T040311Z_01_PEK1127_RTRIDST_0_TECH-CHINA-UTC-UPDATE-1.XML&rpc=66
Thu Jun 8, 2006
NINGBO, China June 8 (Reuters) - Diversified U.S manufacturer United Technologies Corp. (UTX.N: Quote, Profile, Research) said on Thursday it was looking for acquisitions in China to keep pace with the fast growth in the market, with residential air conditioning as a particular area of interest.
"One area we have to fill a hole in is residential air conditioning," Jim Gradoville, the president of United Technologies International Operations in China, told Reuters in an interview.
"Given the level of competition, acquisitions are a way to keep on top of things and fill in your holes," said Gradoville on the sidelines of a corporate conference.
The company has said it will spend $2 billion on acquisitions this year, of which Gradoville says China will get a sizable chunk.
Carrier air conditioning is the company's second largest business in China, after Otis elevators, but is focused on the commercial market for air conditioning.
The executive said total sales in China could grow to $2 billion in a couple of years, from $1.5 billion in 2005, making it the firm's largest market after the United States by the beginning of next year.
"I wouldn't be surprised if we are at $2 billion in a couple of years," he said.
"We think China will be UTC's number two market market at the end of this year or early next year."
Besides China, the diversified company which also makes Pratt & Whitney aircraft engines is also looking to set up a corporate presence in India, another fast growth market.
"India is a possibility for a corporate presence, that is something we are looking at," said Gradoville.
"For us as a business we see India as important and strategic." (US$=8.015 yuan)
© Reuters 2006. All Rights Reserved.