Ammann Group, the Swiss-based international construction equipment supplier, sees a big potential for growth, particularly in the highway sector.

Among the company''s portfolio of products are asphalt plants and compaction equipment.

The group''s CEO and chairman Johann Niklaus Schneider-Ammann, in answer to questions from Road Technology Live at Intermat, said Ammann will improve sales and profits, and while "the figures stay our secret," Ammann as a whole will surpass the 1 billion CHF (approximately E634 million/US$794 million) turnover mark.

While business is good at present, he was asked about preparations for any possible downturn in his company''s sector.

"Roads are not built yet, and there is a big potential. There will always be cycles with ups and downs, saturated regions that show a decrease and regions that have new potential.

"In general, globally viewed, there are more indicators and regions with an upward tendency than indicators that show deterioration. I believe that in the future, there is a big potential," he said.

In May 2005, the company opened its Chinese factory for the manufacture, service and sales of asphalt plants, and this is one country where it sees growth.

"We have had a good start. The progress is according to the business plan and as expected, we can feel the big concurrence of the local factories with competitive prices.

"We also notice the dependency of the Chinese market towards higher technology combined with good service. These are the strengths of Ammann and, therefore, we will continue having good prospects."

Questioned about China and India in particular, he said: "Those countries are on the way to build up their infrastructure, especially the road networks. These networks are essential for the future growth of those countries and therefore the good prospects will remain in the coming years, in particular in India.

"The comparison between the road networks of China of 1.7 million km, with the US and Europe, each approximately 7 million km, shows the enormous potential of the Chinese market.

"The Chinese road construction manufacturers have invested heavily in both manufacturing and technology. Combined with the low manufacturing costs in China, the Chinese manufacturers are very well positioned for the market penetration in India.

"The Indian customer, who is very price-sensitive, will look at the offers from the Chinese manufacturers with high interest."

Mr Schneider-Ammann said that in order to remain competitive in markets like China and India, a local presence is necessary.

"The production of bulky materials and labour-intensive work should be done locally. In combination with the high technology parts from Europe, the outcome for the future is very promising."

Asked about the impact of fuel prices on Ammann''s business, he said that increased oil prices have two clear tendencies in the asphalt industry.

"The price of bitumen has dramatically increased, and for this reason asphalt recycling has become more important: not only in Western countries, but also in China. Ammann, as a pioneer in asphalt recycling technology has taken advantage of this development."

He said increased fuel prices have also increased awareness among customers with relation to energy consumption, especially in an asphalt plant.

"As Ammann has for a long time pursued the concept of higher technology, and therefore higher investment costs in favour of lower operating costs, this tendency has had a positive effect for the company. The topic "cost of ownership" has significantly increased in importance."

Mr Schneider-Ammann said the company had noticed in different markets an increasing demand for mobile continuous plants.

"Ammann has taken into account this increasing demand, and has presented at Intermat for the first time a mobile continuous asphalt plant (ContiMix)."

He was questioned about which regions will show the best gains. "China and India will keep their potential in the future. In addition, countries such as Russia, Middle Eastern countries as well as Brazil will show a considerable potential. I feel that the whole of the Asia Pacific region will recover and will also be an important potential.

"Our first priority is to better penetrate the above-mentioned markets and areas. And then we will follow our international and global customer partners to whatever countries they put an eye on."