From local insight
to regional impact…

Commercial Excellence

Due to the downturn of large projects funded by capital expenditure budgets in China, the Steam Thermal Solutions (STS) OpCo in China has been adapting to the challenging trading environment. Our response has included continuing to redirect focus from capital-intensive projects to maintenance, repair and operations (MRO), resulting in double-digit MRO growth in China, building on similar growth in 2024.

Our local team has also been tracking China’s outbound direct investment (ODI) across Asia due to the complementary advantages of its key markets, such as logistics positions, cost-efficient labour and expanding domestic consumption.

We’ve been present in China for 30 years and have built up a significant installed base and become highly connected to our customers. These relationships help us drive MRO growth domestically and provide a unique insight into our customers’ broader plans and opportunities, such as their project investments outside China.

We began tracking these investments in 2024, focusing on Southeast Asia, which receives the majority of China ODI* and where we have a direct presence in six countries. By linking up China, which as our largest OpCo has significant engineering capabilities, with our teams in the smaller OpCos, we are leveraging our in-depth knowledge of Chinese customers’ process applications and combining this with the local knowledge and relationships held in country.

This approach has resulted in over 100% growth in sales for projects in Southeast Asia with Chinese customers and includes a significant order in Singapore for a leading Biopharm customer that we have worked with in China for 15 years. This award is a great demonstration of how we approach Commercial Excellence. Having already delivered six similar projects for this customer in China and one in Europe, we have built up a trusted relationship, as well as a deep understanding of their needs.

Being involved early enabled us to fully scope our customer’s needs and ultimately provide a tailored, turnkey solution that optimises efficiency and reduces system integration risks. Our teams are now engaged in delivering two steam boilers and associated auxiliary systems, including heat recovery, for an important new research, development and manufacturing facility in Singapore that is expected to put 120,000 litres of Biopharm capacity production into operation during 2026.

* Source: China Briefing, Dezan Shira and Associates.

“Our collaboration was instrumental in providing our customer with the best, bespoke solution and the local, customer service they expect from our teams in both China and Singapore. It’s a great example of how we are continuing to drive growth by anticipating our customers’ evolving needs and working across our organisation to harness the opportunities where we are uniquely placed.”

Paul Lee Suay
Divisional Director Asia Pacific for STS