Rolls-Royce Power Systems had a great year last year. What are your top priorities for the business this year?
The Chinese market is one of the most important markets for Rolls-Royce Power Systems and we see huge growth potential. However, we can only be successful in China by increasing our local presence even more and further push our ‘Local for Local’ strategy that we started last year and implement now step-by-step. We will expand our team, especially with focus on local R&D, Sourcing and Sales to further increase our excellent market share – and we will keep developing and strengthening local partnerships.
The challenge of how we will be able to onboard new employees and equip them for the opportunities in our marketplace at our high speed, the so-called China Speed, drives me. And talent development as well as succession planning will be clear priorities for me.
Another area of interest is the transition from being an engine manufacturer to become an integrated solution provider in China - we're currently setting-up a systems assembly facility for Diesel Systems for the high-end data center market to be able going forward to act even faster, more cost-effectively and more independently in this rapidly growing segment.
How different is the Chinese market compared to Europe and the rest of the world in your view?
I see some big differentiators, starting of course from the demographics: China, in 2019, was close to 1.5 billion people, compared to 450m in Europe and 330m in US. The magnitude of the needs coming out from such great population is speaking by itself: 1 out of every 5 people in the world live in this dynamic economy. And this of course means also huge workforce, which push the growth
Then – despite Europe being the second largest economy in the world in nominal terms, after the United States, and being the third one in purchasing power parity (PPP) terms, after China and the United States, it has some many conflicts coming out from the political and geographical segmentation. China instead can play a different game, talking about one united country – and his economic leadership is clear looking at the GDP growth of the last 30 years.
Finally I see the increase of consumption and the rise of middle class as the strong engine behind the fast capacity of growing, compared to the rest of the world, even if China is universally know as strong international trader
What are the unique opportunities that lie ahead in China for Rolls-Royce Power Systems?
The role infrastructure and enhanced connectivity has played in China’s development and growth over the past years is undisputed. We see strong synergies between companies that provide safe, reliable, efficient, and clean equipment and China’s ambitious growth plans.