Senyuan International Holdings, a circuit-breaker components maker based in Jiangsu province, hopes to raise about $100 million through a main board listing, market sources said yesterday. It recently formed a strategic alliance with Siemens that will see it make and assemble components developed by the German industrial giant into high value-added vacuum circuit breakers (VCB). Senyuan is equally owned by Hong Kong businessman Patrick Tsang Shui-ching and mainland entrepreneur Bobby Zhou Anmin Set up in 1997, the Changzhou-based firm claims a 6.3 per cent share of the 12 kilovolt VCB market in China. The Sino-foreign joint venture of Swiss-Swedish industrial conglomerate ABB in Xiamen, by comparison, controls 7.9 per cent and Huayi in Zhejiang province holds 6.6 per cent, according to Mr Tsang, who declined to offer details about the proposed initial public offering. Mr Tsang said only those three companies had annual capacities of 10,000 units or higher. 'We will explore acquisition opportunities of rivals with annual capacity between 3,000 and 4,000 units,' he said. VCBs are the core components of switchgear used in buildings, factories, power plants and distribution networks to transform high-voltage power from the distribution grid into usable low-voltage power. Mr Tsang said the alliance with Siemens would boost the company's gross profit margin substantially from 25.43 per cent now. 'By having Siemens' brand name in our product, we can earn much higher margins,' he said. 'ABB's products are selling at some 40,000 yuan a unit while ours only fetch 15,000 yuan ... the difference has mostly to do with their brand. 'Siemens can expand its presence in the mainland market quickly by tapping our extensive sales network and manufacturing capabilities.' Siemens' mainland sales lag those at ABB, which entered the mainland about 20 years ago. Senyuan is also in talks with other firms in Germany and the United States on potential co-operation in the 12 kilovolt VCB production. Senyuan's turnover rose from 180 million yuan in 2002 to 240 million yuan in 2003 and 298 million yuan last year. Output is forecast to rise to 17,500 units this year from 14,600 units last year.