Alcatel expecting Chinese growth

1 Apr 2004

The president of the Asia-Pacific arm of French equipment manufacturer Alcatel said yesterday that he expected sales from China to increase by 30% in 2004, on the back of heightened demand for its digital subscriber line (DSL) and switching products. Christian Reinaudo told reporters from Reuters that his company is looking to invest USD145 million in its Chinese operations this year, of which USD100 million has been earmarked for research and development activities, and the remainder for testing third-generation (3G) mobile applications. The Asia-Pacific accounted for EUR2.25 billion of Alcatel’s EUR12.5 billion global sales in 2003, with China alone accounting for more than USD1.1 billion. The firm is looking to double its Asia-Pacific revenues within three years.