Europe's engineering giant seeks to boost R&D and output
Siemens, Europe's largest engineering firm which faces a sweeping reorganisation globally, has stepped up its push into the thriving but competitive mainland market by earmarking a 10 billion yuan outlay for investments.
Andreas Matthe, an executive vice-president and a member of the management board of Siemens' mainland operations, said yesterday the investments would be largely for strengthening research and development and boosting production output via greenfield factories and expanding capacity at some of its existing 70 factories.
The investments would be spread across three segments - energy, industry and medical care - a new business structure pending the approval of the board on November 28, he said. Aiming to do away with layers in regional and division management, the new set-up means consolidation of the 10 business units.
'Despite the reorganisation, we are speeding up our investments and strengthening our portfolio here [in the mainland],' Mr Matthe said. 'The economy is growing at 10 per cent annually and China is the most important market.'
The 10 billion yuan outlay marks the second round of 10 billion yuan investments Siemens spent in the past three years. Originally planned for 2004 to 2010, the investments were completed three years earlier than anticipated due to enormous demand, he said. However, he declined to offer a timeframe for the latest 10 billion yuan outlay, except to say it depends on opportunities.