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Business / Trendsetters

ST Electronics looks to begin competing overseas

By Li Wenfang in Guangzhou (China Daily) Updated: 2014-06-03 07:12

Guangzhou-based ST Electronics-PCI Co, one of China's largest providers of electromechanical systems for metro networks, wants to compete in overseas markets by 2015.

The company, a subsidiary of Shanghai-listed PCI-Suntec Technology Co, supplies subway ticket selling and collecting machines, platform screen doors, comprehensive monitoring, control and surveillance systems. It offers related maintenance services.

It ranks the fifth to seventh in China by revenue in the sector, given the orders in a specific year and the relatively long cycle to secure and fulfill an order in this field, Xu Jie, deputy chairman of Guangzhou Pacific City International Group Co, said. The company is the parent of PCI-Suntec Technology Co.

Established in 2005, the company has sold its products for half of the subway lines in operation and under construction in Guangzhou and expanded further into China in 2012. It generated up to 200 million yuan ($32.4 million) in revenue last year.

It will supply systems to a tram line in Guangzhou, capital of the southern Guangdong province, and intends to participate in building inter-city light rail lines in Guangdong.

The company became wholly owned by its parent in 2010 when it took over the stake held by Singaporean company ST Electronics Ltd.

The research and development capability of Chinese companies have greatly increased since 2008, Xu said, adding his company aims to generate 40 percent of its revenue from overseas projects in the future.

The roadmap Xu sees for overseas expansion begins with being an equipment provider, moves to being a subcontractor and an independent bidder, with each stage estimated to take three years to complete.

ST Electronics-PCI is one of the key companies in Guangzhou's plan to turn the rail transport-related industry into a business with annual output of 100 billion yuan by 2016.

ST Electronics looks to begin competing overseas

ST Electronics looks to begin competing overseas
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