Swiss-based Oerlikon Corp., a maker of fibers worn by astronauts and gears in race cars, said it is remaking itself as a more Asian company to take advantage of expanding markets like China and India.
Chief Executive Officer Michael Buscher said in an interview Tuesday that he sees continuing opportunity both to bring high-technology businesses and related research to China and to tap more suppliers in the country's expanding market. The company on Tuesday inaugurated a new office in Shanghai that includes the global group headquarters for its biggest business line: textiles.
"We are starting to invest again, specifically in China ," Mr. Buscher said.
China represented 28% of Oerlikon's 2011 sales of 4.18 billion Swiss francs ($3.98 billion), driven by its textile business. China's role as No. 1 in global car manufacturing is another big contributor to its business. First-quarter China sales expanded 22% for the group, versus 6% for it globally.
Oerlikon makes advanced fibers for garments worn by fashion models and astronauts, transmission components in Lamborghinis and Formula One racers, advanced systems that make and read Blu-ray Discs, as well as machines that produce film photovoltaic for solar makers.
Listed on the SIX Swiss Stock Exchange and based near Zurich in Pfaeffikon, the company is 48% held by Russian billionaire Victor Vekselberg's Renvoa Group, which has been an investor since 2006. Historically the Oerlikon name was associated with gun systems but the company no longer makes weapons products.
The company is emerging from a painful period where sales almost halved between 2007 and 2009. Amid current economic woes in Europe and elsewhere, Mr. Buscher said that so far the company hasn't felt a need to restate earnings guidance.
During its restructuring, Oerlikon has sold at least two businesses to Asian buyers and Mr. Buscher said further divestment is possible. He described "shaping the remaining portfolio" to make the group more profitable.
Mr. Buscher said that in addition to added manufacturing and research investments to China, the company's commitments to Asia include installing a Singaporean at the helm of its textile business and moving some business operations to India from Italy.
Mr. Buscher, who joined Oerlikon two years ago, says his previous experience in a Bombardier Inc. BBD.B.T 0.00% railway business convinced him that China's demand for specialized products will expand.
China, he said, is "now in a range where our technology makes sense."
Beijing has worked hard to attract investment from technology companies that fear their secrets will be stolen.
Oerlikon says it sees more follow-through from authorities to protect foreign investors. Mr. Buscher and other executives cited a recent court victory in Zhejiang province against a company Oerlikon accused of ripping off its vacuum technology and a separate action in the same province where it expects to prevail.
Oerlikon also said it is also policing the environment more, including with an in-house intellectual property rights department. It hasn't brought every business to China: Lamborghini drive systems remain European-produced.
