Chinese company enters BHS market
10 April 2013
A unit of the shipbuilding conglomerate, China Shipbuilding Industry Corp, has received official approval to launch its baggage handling system on the market. It is the first such system manufactured by a Chinese company, and puts Kunming Shipbuilding Equipment Co Ltd (KSEC) in direct competition with foreign rivals such as Siemens AG, whose products have been widely used in Chinese airports. KSEC claimed that the Chinese-built equipment can be purchased for just 70% of the cost of systems manufactured overseas; annual service and maintenance charges amount to 0.2% of the total cost of the equipment, compared to between 2% and 5% for foreign products, according to the company. In 2008, KSEC set up a joint venture with Logan Teleflex Ltd, which has 40 years' experience in the industry. The joint venture provided the know-how, with KSEC in charge of production and manufacturing. Apart from the domestic market, the company has exported equipment to countries that include the United Kingdom, Russia, India, Singapore and Belgium through its joint venture with Logan. The company intends to tap China's burgeoning market for airport infrastructure. Industry reports show that USD 68 billion will be invested in airport construction in the country in the next five years, including 56 new airports, 16 relocations and 91 expansion projects. The domestic system has attracted interest from many large airports on the Chinese mainland, including those in Beijing, Guangzhou and Chengdu, the company said.