Voith's stand at an international commodity expo in Kunshan, Jiangsu province. [Photo/China Daily]

German machinery maker sees big room for sustained business growth

Unlike most of his peers who are apprehensive about an economic slowdown, Hubert Lienhard believes that there are still several opportunities and huge potential for sustained growth in China.

Such optimism is rare, coming as it is from the head of Voith GmbH, a 147-year-old family-run company from Germany, with a rich pedigree in manufacturing and mechanical engineering and businesses spanning several sectors. Lienhard said that Voith would continue to increase its investments in the "gigantic and dynamic Chinese market".

The German company broke ground on Thursday on a new manufacturing facility for rail transport components in Minhang district of Shanghai.

Set up with total investment of 25 million euros ($30 million), the facility is spread over 10,000 square meters and will be fully operational in 2016.

Voith also commissioned an industrial service center in Changshu, Jiangsu province, last month to serve luxury car manufacturers based in the city.

"China's biggest strength has been its huge market size," said Lienhard, adding that his company remained bullish on the economic prospects in the world's second-largest economy.

"Though its growth rate has slowed to about 7 percent, the absolute number is still high. What the government is doing is commendable, as it provides opportunities for companies to grow on their own strengths, rather than depend on external tools like stimulus packages," he said.

Lienhard's observations are even more significant considering that he has been spearheading Voith business efforts across its four key divisions - hydro, industrial services, paper and turbo.

During the last six years, the company has seen strong growth in China, with revenue more than doubled.