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Siemens, a latecomer to China in terms of software development, has signaled its intention to take on the fiercely competitive Nanjing market with Wednesday's opening of its first solely-owned software venture.
"The new venture is targeted at serving the needs of the Chinese and regional markets," said Rudolf Siebenhofer, president and chief executive officer of the newly-established Siemens Program and System Engineering (Nanjing) Co Ltd.
The venture, with an initial investment of 10 million yuan (US$1.2 million), will develop advanced software and initially serve the needs of all of Siemens' business groups in China.
"More investment will be put in to training human resources," Siebenhofer said.
Siemens will transfer its advanced software development methods, processes and tools, as well as leading quality assurance know-how and comprehensive project expertise, to the new Nanjing-based company.
Local information technology insiders say the transfer will also help foster the development of the Chinese software industry.
"China is a very attractive market for us - bursting with potential and with many yet untapped business opportunities," said Peter Borger, executive vice-president of Siemens Ltd China.
Siemens has already carved out a solid market position in China, due to its accelerated push in the early 1990s. Its total long-term investment stands at 5.4 billion yuan (US$654 million), to be spent on more than 40 companies operating on the Chinese mainland.
"But we still have room for further growth," Borger said.
In the next three to five years, Siemens will spend more cash locally, he said. "No more details are available before the plan is completed."
Borger considers setting up a new software company as Siemens' new step into the Chinese market.
He said Siemens is looking forward to further broadening its business relationship in Nanjing and other parts of Jiangsu Province.
"We want to secure and grow our business volume through more effective market penetration," he said.
(China Daily February 12, 2004)
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