By 2007, China will become the world`s largest PLC market, outstripping the US, Germany and Japan, a new study predicts.

"China is currently the number one choice for OEMs wishing to build new factories or relocate existing facilities," says the report`s author, Don Tait, a research analyst with IMS. "They are attracted by the high economic growth in China, the plentiful supply of labour and low wage cost.

"In addition," he continues, "China`s accession to the World Trade Organisation has helped to liberalise and modernise its trading activities. This has further stimulated the Chinese economy and investment in machinery and equipment."

Tait predicts that the Chinese PLC market will expand by an annual average of more than 20% between 2003 and 2008.

"In terms of industry sectors, building automation, and food and beverage, are expected to show the greatest growth potential," he adds. "This reflects the fact that construction- and consumption-based industries are expected to perform well during this period."