Aveva,
the UK-listed supplier of engineering design software, can apparently
not put a foot wrong with its China strategy which is focussed on two
key markets: power station design and shipbuilding.
While much of the software industry is struggling to achieve anything close to the double-digit growth rates enjoyed in the past, business is booming for Aveva.
Its latest results (pdf) show interim sales up 58% year-on-year to almost £46m. In the Asia Pacific region, sales grew a phenomenal 92% to almost £21m, accounting for almost half of the company's total sales. Profit before tax almost tripled to 200% to almost £13m.
Aveva is one of the overlooked beneficiaries of the rapidly growing
demand for power generation capacity in China.
Indeed, it claims that 80% of the 3D design work for new large power plants in China is done with Aveva software. Moreover, while energy experts argue about the most appropriate fuel to power China's future, Aveva stays out of the debate and benefits regardless.
Its software can equally well be used for fossil fuel plants, nuclear power stations, boiler design or combined-cycle power plants.
Cambridge-based Aveva recently signed a partnership with an industry body representing China's electric power design institutes that translates into one of the largest ever plant engineering IT contracts in China, according to the company.
As well as power plants, Aveva's software gets used by shipbuilders. While Korea is the main Asian market for Aveva's shipbuilding software, Aveva has set up a marine division in China and has signed contracts with leading Chinese shipyards such as New Century Shipbuilding of Jingjiang and Dalian New Shipbuilding Heavy Industries.
