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United Technologies Seeks Chinese Air-Conditioning Acquisitions

Company will spend $2 billion on acquisitions in 2006; sizable portion will be in China

United Technologies Corp., a diversified U.S manufacturer,  said on Thursday it was looking for acquisitions in China to keep pace with the fast growth in the market, with residential air conditioning as a particular area of interest, according to a Reuters report.

"One area we have to fill a hole in is residential air conditioning," said Jim Gradoville, president of United Technologies International Operations in China. "Given the level of competition, acquisitions are a way to keep on top of things and fill in your holes."

The company has said it will spend $2 billion on acquisitions this year, of which Gradoville says China will get a sizable chunk.

Carrier air conditioning is the company's second largest business in China, after Otis elevators, but is focused on the commercial market for air conditioning.

Gradoville said total sales in China could grow to $2 billion in a couple of years, from $1.5 billion in 2005, making it the firm's largest market after the United States by the beginning of next year.