ZEISS sees rosy prospects in Chinese market

ZEISS, a German multinational company operating in the optical and optoelectronic industries, has managed to maintain strong growth even during the pandemic in China, thanks to its focus on innovation and commitment to high-quality economic development, said Maximilian Foerst, president & CEO of ZEISS China.

He made the remarks talking to China Daily on the sidelines of the ongoing 18th China International Machine Tool Show scheduled to be concluded on Saturday.

According to Foerst, the company's compounded annual growth rate has been close to 20% in the past 10 years, and they grew by 22% over the prior year in order entry in 2022, consolidating China's position as ZEISS largest market.

The company, as he said, believed that high-quality economic development, innovation, and opening up and exchange are key drivers of success.

"We believe technologies are coming out of China and not the other way around. So we have focused a lot of attention working together with Chinese companies to develop application and solutions based on the know-how of our Chinese partners," Foerst said.

Over the past decade, China has implemented a set of plans to drive innovation and open up new opportunities for multinational companies operating in the Chinese market, including ZEISS.

In the post-pandemic era, ZEISS plans to adjust its China strategy by shaping the market with future-oriented solutions, building a broader network to co-innovate with local customers, and increasing its investment in China's market.

The new energy vehicle, electronics, and the health sector, as Foerst noted, are the major areas of the company's development in China in the future.

In view of a colossal number of myopia suffers particularly the young students and an ageing population susceptible to presbyopia, ZEISS has been focusing all its related research and development in China, he added.

"We truly believe if you want to be global leader, you need to be in China," he said.

At present, the company's new investment, Suzhou's Phoenix project, has broken ground, and its completion is expected to help ZEISS build a more resilient and sustainable industrial ecosystem in the Yangtze River Delta region, contributing to the upgrade of 'Made in China' and the high-quality development of the health industry.

Regarding digitalization, as China leads the world in the area, ZEISS plans to help its customers leverage resources in terms of technology and supply chain by moving towards two paths, Greater Bay Area with Guangzhou as the center, and the Yangtze River Delta region with Shanghai and Suzhou as the core. ZEISS will also accelerate the localization of its comprehensive product portfolio and enhance customer proximity in the region.

ZEISS spends more than 10% of its revenue on research and development. In China, it plans to focus on high value-added precision assembly and manufacturing and associated innovation activities for its medical technology and industrial quality and research solutions businesses. The company is committed to mitigating the risks of global supply chain disruptions through supply chain localization and driving innovation for more China-specific solutions.

ZEISS is committed to sustainability, and its strategy aims to improve the company's social and environmental impact, view sustainability as a value driver, and leverage sustainability challenges as opportunities. The company aims to achieve carbon neutrality in the way it operates by 2025 and switch to green power at key sites worldwide by 2022.

The Suzhou's Phoenix project is an epitome of sustainability and a fundamental principle for ZEISS. The company is taking steps towards using energy efficiently, offsetting emissions, and promoting low-carbon travel.