Walther Thygesen, CEO of Thrane & Thrane
BEIJING - Thrane & Thrane A/S, the world's biggest maritime satellite terminal supplier by market share, aims to double its sales in China in the next three years, according to its chief executive officer.
The Chinese market contributed less than 5 percent of Thrane & Thrane's revenue in 2006, but the figure has climbed to about 15 percent over the past five years of development in the country.
Asian revenue accounted for 27 percent of the company's global sales in the past three quarters of its fiscal calendar, the European market for more than half of its sales and the North American market for 20 percent, according to the company.
"China is the most important market for Thrane & Thrane based on its size and potential business opportunities," said Walther Thygesen, the company's chief executive officer, at a Beijing news briefing on Wednesday.
He declined to disclose sales figures for China and the Asia-Pacific region.
The company's revenues in its first three quarters, ending Jan 31, were 779 million Danish krones ($149 million).
Though Thrane & Thrane has most of its sales in the European market, because most global shipping companies are located there, and growth is relatively stable, Thygesen said.
"In the next six months, most of the growth will come from Asia and China," he said.
Since establishing a Shanghai office in 2004, the company has sold mobile communication equipment to major Chinese shipping, gas and mining companies, government emergency departments and military organizations.
Frank Shih, senior vice-president of Asia Pacific, Thrane & Thrane, said that the company has already done business with around 100 of China's 3,000 shipping companies, including China COSCO Holdings Co Ltd, the country's biggest shipping conglomerate by market value.
The company is looking into opportunities to tap into China's fledgling aviation industry, Thygesen said, as the nation is going to build its own commercial aircraft and open its low attitude airspace.
"We are looking to acquire some Chinese companies, in the hope of broadening our portfolio in China, or to help us develop products specifically for the Chinese market," Thygesen said.
Acquisition targets could be technology or software application companies. Thrane & Thrane might not buy such companies outright, but it could at least partner with them, he said.
Thrane & Thrane has been talking with three companies - one in Asia, one in Canada and one in Europe - about potential mergers and acquisitions. No Chinese company is currently engaged in acquisition talks with Thrane & Thrane , Thygesen said.
It also plans to invest 20 percent of its revenue in research and development (R&D) this year, up from 18 percent from last year. Thygesen hopes it can establish an R&D center in China, but declined to disclose details.
