a magazine from atlas copco construction technique – NO.2 / 2012
able to buy homes. But the government is fearful about going too far. “The whole economy is geared towards construction and property and investment,” says Gillem Tulloch, Managing Director of independent research company Forensic Asia in Hong Kong. “That’s why the government will be hesitant in rolling out these property restrictions at a time when you’re seeing substantial deterioration from the wider economy.” ANNOUNCED LAST YEAR,
China’s latest five-year plan calls for a “new era of growth” aimed at creating a more balanced economy in terms of internal and external demand, says O’Brien. “The plan places far greater emphasis
on internal markets and domestic demand than ever before, and includes industrial structures that emphasize added value.” Atlas Copco’s Portable Energy division has been investing in China to build products specifically based on the changing demands of the Chinese market. Says O’Brien: “We see a strong movement towards more energy efficiency, increased focus on ‘green technology’ and strong demand for local good-quality products offering low cost of ownership. “Portable Energy is now in the process of developing a new, more efficient electrical-driven line of compressors in China that will offer benefits for the customer in terms of lower operating lifetime
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investment as well as lower emissions than the traditional dieseldriven machines.” The Chinese construction industry is still feeling the effects of a massive stimulus that the government injected into the economy in the wake of the global financial crisis of 2008 and 2009. “The government went out and embarked on the largest stimulus the world has ever seen,” Tulloch says. “It’s more than SEK 46 trillion (USD 7 trillion) spread over three years.” Regardless of the length of the slowdown in China, Atlas Copco is taking the long view. “We remain committed to and focused on providing China and the region in Asia with the most innovative products that are designed and developed to provide optimum sustainable productivity,” O’Brien says.
CHINA’s GROWTH RATES 2010: 10.4% 2011: 9.2% Target for 2012: 7.5%