Chinese truck and bus parts maker Asimco Technologies has carved out a unique niche – a growing business of 12,000 workers that combines the cost structure of a Chinese firm with the management style of a multinational – its US-born chairman Jack Perkowski told Reuters in an interview.
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Building six factories last year in a crowded mainland market could herald an aggressive expansion programme leading to a stock listing in a few years, the news agency noted.
“There’s no one like us,” Perkowski told Reuters, adding: “And it will be difficult for someone to follow us.”
Unlisted Beijing-based Asimco supplies diesel engines, transmissions and fuel and brake systems for commercial vehicles and customers include DaimlerChrysler and Ford, as well as local manufacturers such as Dalian Diesel.
Reuters said Perkowski’s confidence stems from a shift in the global motor industry toward low cost manufacturers that have access to technology and capital.
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By GlobalData“We can get capital and we can get technology,” Perkowski reportedly said. “We’re very well positioned to take advantage of that.”
The report said Asimco raised $US70m for last year’s expansion and is eyeing equity markets for a next, larger growth phase. “In the next couple of years it could happen. An equity offering under $100 million wouldn’t make any sense,” Perkowski said.
New capital is needed as revenue could grow well over 20% in the coming years after increasing 18% in 2005 to $400 million.
According to Reuters, only 15% of Asimco’s production leaves China, while over half is targeted at the commercial vehicle market.
“Assemblers three or four years ago didn’t really want to deal with us, they wanted the Delphis of the world,” Perkowski told Reuters, adding: “That’s changed, we are now getting enormous interest from virtually all overseas assemblers.”
The news agency said Asimco relies on local managers for its network of factories, but has installed a management system that encourages transparency and respect for contracts.
“That’s what investors and customers like about us,” Perkowski told Reuters.
He added that passenger cars and the after-sales market are also promising areas in which to expand. China’s vehicle parts market alone is estimated at around $19bn.
“There are still many opportunities in China,” he said.
Perkowski told Reuters that China’s growing clout in the global motor industry – car sales this year should top 6m – means it will begin to attract more advanced technology and eventually begin to innovate on its own.
“We jointly developed a twin cylinder compressor with the Swedish firm Haldex,” Perkowski told the news agency. “It’s a first case for us and we are ramping up that product this year.”
