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Honeywell eyes sustainable future in Chinese market

By ZHENG XIN | China Daily | Updated: 2021-04-29 09:18
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A Honeywell logo is pictured on the company booth during the European Business Aviation Convention & Exhibition (EBACE) at Cointrin airport in Geneva, Switzerland. [Photo/Agencies]

China's carbon neutrality pledge is a major milestone in the global fight against climate change and will provide more growth opportunities for multinational companies like Honeywell, a top company official said.

Steven Lien, president of Honeywell China, said the company is well-positioned for a more sustainable future in China and together with its partners will look to provide customers with adaptable and efficient solutions for energy and environmental requirements.

"China's 14th Five-Year Plan (2021-25) and the 2035 long-term development goals highlight low-carbon development, environmental protection and energy efficiency for the country to attain its carbon dioxide emissions peak by 2030 and achieve carbon neutrality by 2060. This is also in line with Honeywell's commitment of developing solutions to suit local customers' needs in energy efficiency and environment protection," said Lien.

"We will continue to support Chinese customers' sustainability goals with innovative new products that reduce greenhouse gas emissions, conserve energy and support the adoption of renewable energy sources," he said.

The US-based company said nearly 50 percent of its new product research and development investment is directed toward products that improve environmental and social outcomes for customers.

With the belief that the company's industrial software technologies will play a key role in helping expand China's digital economy, Honeywell is planning to further expand its presence in the country and join hands with local partners to meet the demands of Chinese businesses and consumers as the market further opens up to the rest of the world during the 14th Five-Year Plan period.

Experts said that many multinational companies are trying to ensure that their core business aligns with the market demand in China.

Tang Sisi, an analyst at research firm BloombergNEF, said the country's carbon neutrality pledge highlights the importance of decarbonization in China's chemical industry.

"This has also become the strategic focus for more chemical companies, both Chinese and international. Aligning these focuses will create a level playing field for companies to compete in the Chinese market," she said.

"Green development of China's chemical sector will also create great growth potential for international chemical companies. As the sector upgrades from bulk base chemicals to high-value products, there will be an increased need for specialty chemicals, which plays to the strength of the chemical giants."

The company said China has substantial potential in fields like green technology, smart building, urban air mobility, healthcare, e-commerce and logistics as well as digitalized manufacturing, and Honeywell would seek to further develop the country's mid-and high-end markets.

Lien believes the country's emerging mass market represents the biggest growth segment in China in the next decade. It is also Honeywell's strategy to accelerate long-term sustainable growth beyond the high-end and the traditional mid-markets.

The establishment of Huosheng Industrial Technology Co Ltd in Wuhan, Hubei province, last year as headquarters for the company's mass mid-market segment in China marks a key milestone in its growth and development, he said.

In addition to the domestic market, Honeywell has also been working with Chinese engineering contractors to explore and develop infrastructure projects on the international stage, including major contract by Sepco Electric Power Construction Corp to supply connected control, telecommunications, safety and security systems for King Salman International Complex for Maritime Industries and Services in Saudi Arabia, one of the world's largest shipyards.

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