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Siemens pouring capital into R&D
( 2002-04-08 11:14 ) (1 )

Siemens AG of Germany, a world leader of electric engineering and electronics, will shift its focus from investment in manufacturing facilities to research and development (R&D) and aims to transfer advanced technology and expertise to China in the coming years.

The German conglomerate has also pledged to spare no efforts in sharpening the competitiveness of its existing joint ventures in China and will vigorously support and actively participate in the country's Go-West programme projects.

The information was released by management at Siemens Ltd China after it completed its board meeting in Beijing on Friday. Siemens said it would meet the rising challenges after China joined the World Trade Organization (WTO) late last year.

By September 2001, Siemens had established more than 40 joint ventures and 26 regional offices in China, creating more than 21,000 jobs. And its total investment in the ventures reached more than 500 million euros (US$440.92 million) while the sales income hit 3.5 billion euros (US$3.08 billion) in fiscal 2001, up 49 per cent over the previous year, according to Ernst Behrens, president and CEO of Siemens Ltd China.

After China joined the WTO, competition has further intensified and Siemens wants to continue to take a leading position in competing against its rivals, especially those from abroad.

The measure is to enhance its R&D and raise the competitiveness of its joint ventures so that Siemens can launch new and quality products, Behrens said.

The German giant has decided to pour US$250 million into establishing three R&D centres in Asia by 2003 and two of them will be in Beijing and Shanghai respectively, with the other in Singapore.

Regarding enhancing the competitiveness of its existing ventures, Klaus Wucherer, member of the Managing Board of Siemens AG and president of Automation and Drives Group, said his company will emphasize the transfer of know-how, advanced technology and the training of its local staff.

Transfer of know-how and expertise is sometimes more essential to enhance a company's competitiveness in the market.

Wucherer promised that Siemens will bring its most advanced technology to China, adding the German company considers Siemens Ltd China a Chinese firm instead of a German company. Its aim is to make its firms in the country an integral part of the rapidly growing Chinese economy.

Siemens has set up 12 training centres in China and to date, more than 800 of Siemens local staff have received senior management training at the Siemens Management College in Beijing.

As for environmental protection, the top management of Siemens Ltd China has praised the Chinese Government's emphasis on environmental protection.

Behrens said his company has gained rich experience in environmental protection in Germany and the experience can be applied to projects of China's Go-West campaign and the Beijing 2008 Olympic Games.

Wucherer said his company has competitive technologies in clean energy production and supply, medical equipment and transport, including railway, subway, light rail and highway.

In the meantime, the company has decided to invest US$60 million in its mobile equipment venture in Shanghai to increase its annual production from 10 million units of cellular phones to 14 million units.

And its power generation group is negotiating with Chinese partners on establishing a joint venture producing advanced gas turbines in China, said Klaus Voges, president of Siemens Power Generation Group.