HO CHI MINH CITY, Vietnam, Oct. 24, 2006 – Louis Chênevert, President and Chief Operating Officer of United Technologies Corp. (NYSE:UTX), today said that establishing permanent normal trade relations (PNTR) between the U.S. and Vietnam is overdue. Speaking at an American Chamber of Commerce luncheon here, Chênevert said his company strongly supports PNTR for Vietnam and has been an advocate in urging the U.S. Congress to take action granting this status.
Chênevert also said UTC strongly supports Vietnam’s accession to the World Trade Organization and is a founding member of the U.S. – Vietnam World Trade Organization Coalition. “Over time the economic reforms this country has undertaken to gain entry to the WTO will make Vietnam a more competitive economy and stronger market for global businesses including UTC,” Chênevert said. He congratulated the people and leaders of Vietnam for hosting the coming Asia-Pacific Economic Cooperation (APEC) leaders’ summit in November. “This recognizes Vietnam’s importance as a country with much to contribute to this region.”
Chênevert highlighted a number of fuel efficient and environmentally sound technologies developed by the company’s business units. The Otis Gen2 elevator, for example, is 70 percent more energy efficient than a conventional elevator and operates cleanly without lubricants. The Gen2 system’s coated-steel belt, which weighs up to 20 percent less than conventional ropes, enables Otis to reduce the size of the machine required to power the elevator by about 70 percent. The smaller machine fits easily inside the elevator hoistway, eliminating the need for a costly, separate machine room in the building.
Looking to the future, Chênevert talked about Pratt & Whitney’s new geared turbofan jet engine designed for the next generation of single-aisle commercial aircraft. These engines are designed for greater fuel efficiency – up to a 12 percent improvement – as well as for quieter and cleaner performance. Ultimately, this engine is expected to yield a 12-15 percent reduction in operating costs.
Energy efficiency and lower environmental impacts also are engineered into UTC’s business processes, Chênevert said. He noted the company has reduced its total energy consumption by 18 percent since 1997 despite increased production volume. UTC has cut its air emissions and hazardous waste by about 90 percent in the U.S since 1990, he said, adding that water consumption is down 44 percent worldwide since 1997, saving 2.1 billion gallons of water – enough to supply nearly 14 million adults with drinking water for a year. Meanwhile, UTC has achieved total shareholder returns exceeding 1,200 percent since 1992 and market capitalization increases of about 1,100 percent. “This demonstrates that what is good for the environment can also be good for business,” Chênevert said.
Chênevert concluded his remarks by noting positive developments taking place in Vietnam including the country’s liberalized economic policy that is leading to growing foreign investment. He also cited strong growth projected for Vietnam’s aviation sector, and said the trend toward urbanization, the rate of which is projected to double by 2030, could mean opportunity for the building equipment industries. “In Vietnam I see great potential for a bright future,” Chênevert said.
United Technologies Corp., based in Hartford, Connecticut, USA, is a diversified company that provides a broad range of high technology products and support services to the building systems and aerospace industries worldwide.