In China, Howden is taking steps to grow the range of products it supplies to the petrochemical, oil and gas, mining and other industries through the introduction of an increased range of locally manufactured Howden products. The rate of growth of electricity generating capacity in China is likely to slow from the exceptional levels seen in recent years, but it is still anticipated that appreciable new capacity will be added before the end of the decade.
In Russia, high prices for oil and gas are stimulating investment in the Russian petrochemicals sector.Howden is strengthening its presence in Russia by establishing a sales office in Moscow.
A local representative office is also in the process of being established in India where there are considered to be significant future sales opportunities, particularly from the anticipated growth in demand for power. The International Energy Agency has forecast that growth in demand in India will be slightly ahead of the forecast growth for China.
South America continues to show potential for growth.
Demand for new power plants in Europe and North America increased during 2006 and this trend is likely to continue in the future. In addition, ever more stringent environmental protection legislation requires that power generating companies invest in plant that has efficient atmospheric pollution systems.
Howden is focusing on strengthening its aftermarket presence, particularly in the servicing of, and supply of spare parts for, its substantial installed base, and as part of this strategy has withdrawn from certain low margin business.