Voith sees China as spur of its business (3)

Voith sees potential for its hydropower business, which comprises about a quarter of the installed capacity in the sector in China.

"We also expect our railway- system business to recover, as China is planning to invest 600 billion yuan ($95 billion) in the rail system in 2013, with 60 percent going to high-speed rail," said Lienhard.

Although Voith's global paper business has been hit seriously by the worldwide slump in demand for graphic paper, including newsprint, the company saw an increase in the sector in China, with a rapidly growing appetite for packaging paper.

This sector's output in China is now the source of nearly 55 percent of the country's total paper demand, compared to 39 percent in 2002, according to the China Paper Association.

"More impressive, the growing trend for Chinese companies and multinationals in China to outsource their non-core businesses is also presenting Voith Industrial Services with an unprecedented opportunity," said Lienhard.

In the 2012 fiscal year, Voith Industrial Services sales recorded an increase of nearly 50 percent year-on-year in China.

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