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November 18, 2009

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Home » Business » Manufacturing

Filtration company aiming to clean up

UNITED States-based Parker Hannifin, which specializes in motion and control technologies, began production at its filtration plant in Shanghai yesterday to ride on soaring demand resulting from the government's efforts to clean up the environment.

Parker Hannifin, a supplier for China's first regional jet and the Beijing-Shanghai high-speed railway, also said it was in talks with Chinese authorities for potential deals involving the country's domestic jumbo jet project and the country's fast expanding highway systems. Deals are expected to be closed by the end of the year, company officials said.

The new site will produce, among other things, filters with applications in diesel engines and aviation fuel systems to reduce emissions.

"Filtration is our fastest growing sector in China, which jumped 10 times in the past three years," said Michael Chung, president of the company's Asia Pacific Group. "It could jump five times more in the next three to five years as China acts to remove pollution from diesel engines, heavy equipment manufacturing and trucks."

Chung said Parker Hannifin is also excited about the development of China's highways.

"We have never seen a government that takes on highway expansion in such a scale and in such a short time," said Chung. "China handed out US$200 billion to accelerate the project and asked for a local supply of 70 percent. And we are in a good position to be one of the suppliers with our strengths.

"Our business in China saw rapid recovery this year and China is counted on by the group to lead it out of the economic recession," said Chung.

Sales in China are expected to remain almost the same as last year's US$500 million while its global business may see a drop of as much as 20 percent in revenue.


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