Managing to grow twice the Chinese GDP Siemens China maps out a series of mid-term strategies to sustain its growth momentum and boost market positions in face of worsening economic conditions. Reflecting China's RMB 4 trillion economic stimulus program, the company will continue to focus on rural development, its environmental portfolio and local innovation.
Beijing, December 8, 2008 -- In Fiscal Year 2008, sales and new orders of Siemens China surged to 57 billion RMB and 65.5 billion RMB respectively, both representing a 19 percent growth rate. "In face of a global economic downturn I am glad that the results of our China operations again contribute significantly to our global performance", said Dr. Richard Hausmann, CEO Siemens Northeast Asia and President & CEO of Siemens Ltd., China. "Such figures are even more remarkable given the fact that in 2008 Siemens underwent one of the largest reorganizations in the history of the company."
To date, China is the second largest (after the US) market of Siemens outside Germany. With all businesses active in China, Siemens at present has a nationwide network of more than 90 operating companies and 61 regional offices. In FY07/08, Siemens China contributed 6 per cent to new orders of Siemens globally.
In 2008 Siemens has again underscored to be the most reliable partner for integrated solutions for mega events like the Beijing Games in 2008. Siemens won contracts worth over 10 billion RMB and delivered high quality in time. The baggage handling system at T3 of Beijing Capital Airport, the control, signaling and safety equipment for the city's subway network, high-speed trains supplied together with local partner, signaling, communication and power supply systems for Beijing-Tianjin high speed line, power transmission and distribution equipment and solutions, extra-low voltage solutions for the National Aquatics Center (Water Cube) and building technologies at a number of sporting venues and the bio-membrane technology applied to purify waste water made safe, convenient and “green” Beijing Games possible.
The launch of the new Siemens Center Beijing (SCB) with an investment of about 1 billion RMB marked a milestone for the history of Siemens in China. As one of Siemens' largest real estate investment projects worldwide, the 30-storey office building ranks top in maximizing energy efficiency. With its intelligent and environmental friendly features the building uses 28% less energy than comparable office buildings.
In FY08, Siemens scored significant achievements in its three sectors in China:
The Industry Sector once again won a three-digit million RMB order to supply the second Corex C-3000 plant to Baosteel. Featured with lower environmental emissions compared with a blast furnace, the second Corex marks a milestone of Siemens' cooperation with China's iron and steel industry since 1979.
In the Energy Sector, Siemens secured a contract of over RMB 1.7 billion to build the High Voltage DC transmission (HVDC) link from the Xiangjiaba hydro-electric power plant in south western China to Shanghai. With a transmission capacity of 6400 megawatts and a length of more than 2000 kilometers (1240 miles), the planned HVDC transmission link will be the longest in the world and will have the highest capacity of such kind.
Siemens Healthcare Sector recently installed a tailor-made syngo Suite PACS/RIS solution in the Huaxi Hospital. This marks the largest PACS/RIS system installation in China, which greatly optimized the entire diagnostic imaging workflow in the hospital and shortened the time for patients to get clinical report by up to 50%.
China has been hit severely by natural disasters in 2008. Siemens has been one of the first international companies to make donations immediately after the outbreak of the snowstorm in southern China and the devastating earthquake in Sichuan. Medical equipment and living necessities were delivered to the affected regions together with cash donations from Siemens staff across China. In 2008, Siemens China was once again, amongst other awards, honored the "Global Responsibility – China Action Award" for its outstanding commitment to corporate social responsibilities in China.
Siemens will expand investment in technologies and solutions customized for rural areas of China. Rural development and the well-being of 900 million peasants top the agenda of the Chinese government, which was further emphasized in the recent stimulus package to finance programs in rural infrastructure. The Siemens concept of SMART (Simple, Maintenance friendly, Affordable, Reliable, Timely to market) innovation best fits into the demand of the underdeveloped regions of China and can help the local people to tackle problems like access to clean drinkable water, increasing energy demand and healthcare improvement with simple, maintenance-friendly, affordable and reliable technologies and solutions. In October, the first "Siemens Rural Center of Medical Excellence" was launched in Luochuan County, Shaanxi Province. The wide range of diagnostic imaging equipment installed in the hospital is specially designed to meet the needs and budget of smaller hospitals in remote areas. "In these rural areas we identify big growth potential," emphasized Dr. Hausmann, "and more importantly we are dedicated to improving the living conditions of the needy people and working with the government to strike the balance between the east and the west."
Siemens will reinforce its environmental portfolio in China to help the country reach its "green" goal. Siemens is the leading company in terms of climate and environmental protection. No other company has a comparable broad green portfolio. "We see this as another pillar for our growth in the years to come as our comprehensive Environmental Portfolio covers solutions for nearly every environmentally relevant field of power generation, transmission and consumption" said Dr. Hausmann. "By 2010, 40 percent of our order intake will be generated from our Environmental Portfolio."
Siemens will enhance innovations in China, for China and the export market. In FY08, about 120 products were locally developed and 155 patents were filed in China, reaching a record-high of Siemens in China. In April 2008, Siemens China entered into a framework agreement with Tsinghua University and Tongji University for closer collaborations in research and development, marking the first of such arrangement in Asia. As China pledged to increase spending on innovation and make the best use of international resources of science and technology, Siemens will further extend its R&D base in China with emphasis on locally designed and developed products and solutions tailored for the Chinese market. Collaborating with Chinese partners to develop technologies in China also for global application will play a major role in the years to come.
Siemens in China
Siemens is one of the most well-known, liked and respected corporate citizens in China. Marked by the delivery of China's first pointer telegraph in 1872, it is among the earliest international companies to pioneer co-operation with China. Over more than a hundred years, Siemens has stood for technical achievements, innovation, quality, reliability and internationality. Presently, Siemens maintains more than 90 operating companies and 61 regional offices in China, representing all business sectors of Siemens worldwide – Industry, Energy and Healthcare. These offices, together with the Regional and Provincial managers, are the backbone of Siemens' regional strategy and ensure that the company is close to its customers to be able to respond quickly and efficiently to their needs. With more than 43,000 highly qualified local staff, Siemens has become one of the largest employers amongst foreign invested enterprises in China and an integral part of the Chinese economy. Today, by applying a wide array of environmental portfolio and innovative solutions in the cooperation with local partners, the company is committed to contributing to the sustainable development of the country. In Fiscal 2008, sales and new orders of Siemens China were 57 billion RMB and 65.5 billion RMB respectively.
