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| Siemens to Spend over US$1b in Nation over Next Four Years |
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German industrial conglomerate Siemens AG is poised to invest 10 billion yuan (US$1.27 billion) in China by 2010 to maintain its rapid growth in the nation. "We have strong growth momentum in China," said Richard Hausmann, President and CEO of Siemens China, citing nearly 20 percent annual growth in the nation during the past three years. The company said its total sales in China grew 37 percent to 50.4 billion yuan (US$6.38 billion) in the 2006 fiscal year, which ended on September 30. Meanwhile, its new orders also increased 15 percent to 56 billion yuan (US$7.09 billion) during the period. The strong growth mainly comes from new investment and the expansion of its current businesses, the company said, adding that all its major businesses have had upbeat performance during the period. The company said its sales from industrial operations soared 75 percent in 2006, while its transportation arm won a 6.7 billion yuan (US$848.10 million) deal for 60 high speed trains, its single largest deal in China. Senior officials at Siemens' headquarters have been struggling with an alleged slush fund and embezzlement scandal. But its top management said China has stayed away from the situation. "There is no clear indication right now that our China business is involved in the case," said Hausmann, adding Siemens' telecommunications network joint venture with Nokia will start operations in early 2007 as scheduled. The company is betting on the new investment to further expand its presence in the nation while doubling its sales in 2010. China is now the world's third-largest and fastest growing electrical and electronics market and is expected to continue to spend heavily on infrastructure and industrial equipment in coming years. "We will focus on key growth enablers, including R&D, sourcing, production, and regionalization to secure sustainable profitable growth," said Hausmann. The company will add 30 regional offices from its current 60 to stay close to local clients. Meanwhile, it expects to double its R&D staff in the nation. Siemens opened its technology centre in 2006 and increased its R&D workforce by 40 percent. The company will invest 800 million yuan (US$101.27 million) within five years to enhance its R&D capacity. "The investment is a very conservative figure, though we don't have a specific time-table," said Jill Lee, chief financial officer of Siemens China. The company committed a 10 billion yuan (US$1.27 billion) investment in May 2004 as international industrial giants piled into China for new growth opportunities. ABB, a Swiss-headquartered industrial giant, said earlier this year it would gear up its investments in China to maintain 20 percent annual growth. (China Daily December 14, 2006) |
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