BEIJING, April 5 -- Siasun Robot and Automation Co Ltd, China's leading robot producing and engineering firm, will start building a plant in Shenyang, capital of northeastern Liaoning Province, this month.
The new facilities will double the company's annual production capacity to 2,000 units mainly of manufacturing equipment, according to Qu Daokui, president of Siasun.
This marks a crucial step in the firm's efforts to retain its position as China's dominant robot producer, Qu said in an interview with China Daily.
'China's automation market is promising and it is high time for Siasun to grow and grasp this,' said Qu.
Siasun products include industrial robots, automated guided vehicles and automotive body welding and assembly engineering lines. It has a one-third share of the domestic robot market.
This is the third time Siasun has expanded production capacity since 2000.
'The market demand is so urgent that we even have to turn down some projects due to the limited production line,' said Ha Enjing, director of Siasun's marketing centre.
Qu also disclosed that Siasun's three branches in Beijing, Shanghai and Shenzhen may also expand production to meet this booming demand.
Following the country's entry into the World Trade Organization and introduction of fierce competition from foreign counterparts, local companies are forced to find new ways to improve efficiency and quality to survive.
Siasun's clients are concentrated in the vehicle industry - most foreign auto giants have poured in investment to grab local market share.
Siasun's client list includes First Automotive Works, Shanghai Automotive Industry Corporation group and Jialing Industrial Co Ltd (Group).
'And we own the unique advantage in terms of technology,' said Qu. Siasun's biggest shareholder is the Shenyang Institute of Automation, which comes under the Chinese Academy of Sciences. The institute is the nation's key automation research body.
Last year Siasun's year-on-year sales income growth surpassed 40 per cent, reaching 230 million yuan (US$27.8 million). The company has kept up this pace for four years.
'This is only the past experience of Siasun's childhood. I am sure our growth will surpass this figure in the future because we have grown up into a strong and energetic youth,' said Qu.
However, he also expressed his concerns about obstacles that stand in the way of future growth.
'The main problem is the stake ownership,' he said. Siasun is a central government controlled State-owned enterprise (SOE).
'As a high-tech company, speed and efficiency are everything. But the current ownership always holds us back,' Qu confessed. He hopes more investors can be introduced to diversify the ownership of the company.
He was backed up by Li Xiangping, a researcher from the Liaoning Social Science Academy. Li strongly advocates the diversification of the ownership of SOEs in general, and said this is key for reform.
Under the current ownership system, Siasun cannot offer a competitive income structure that is necessary to retain elite staff, the key to a high-tech firm's success, according to Qu.
'Our staff have become the focus of head hunters. At the end of every year they are bombarded with free phones,' Qu joked.
He disclosed that the company is considering ownership reform this year, but he declined to give any details. (Xinhua Online)