Siemens to spend over US$1b in nation over next four years
By Wang Xu (China Daily)Updated: 2006-12-14 09:08
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 per cent annual growth in the nation during the past three years.
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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 per cent 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.
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