Siemens Grows in China

Siemens launches twelve-step program for profit and growth in China

May 19, 2004

2 Min Read

SHANGHAI -- With its new Twelve-Point Program for Profit and Growth, Siemens aims to further expand its position in the Chinese market. Key pillars of the strategy are a further improvement in market penetration, ambitious growth targets for the company’s operating Groups, the increased use of China’s talent potential and an expansion of China’s role in the “Global network of innovation.” As part of this strategy, the company will double the number of regional offices from the current 28 to 60 in order to ensure a presence in all of the country’s provinces. R&D and software activities will be significantly expanded. Siemens will intensify the integration of its purchasing activities in China into its global value chain. Overall, the company will invest €1 billion in the country in the next few years. Siemens already has 45 companies and joint ventures and nearly 30,000 employees in China. The Twelve-Point Program aims to considerably increase the company’s current sales volume of some €4 billion. “We see good chances of doubling today’s sales volume in the next three to five years,” said Siemens CEO Heinrich v. Pierer in Shanghai, where the company is celebrating its 100th anniversary in China.

China’s dynamic economic development in recent years has been unique in the world: Its electrical market alone has a volume of €195 billion, making China Number 3 worldwide. Siemens estimates that the Chinese market is growing at 10% a year. The infrastructure provider also intends to profit from growth generated by major events like the 2008 Olympic Games and Expo 2010. Its new strategy will enable Siemens to orient its business in China toward continued growth and profitability.

The Twelve-Point Program for Profit and Growth in China defines the concrete levers for further expanding Siemens’ strong position on the Chinese market. The first two levers focus on improving market penetration. In this connection, Siemens plans to more than double the number of its regional offices, from the current 28 to 60. The company will then be present in all of the country’s provinces. As in 30 other countries, Siemens will also establish the One Siemens concept in China in order to bundle its competencies company-wide to provide products and services in six defined market segments from a single source. One Siemens should enable the company to generate a business volume in the mid-triple-digit millions range in the next three years.

Siemens AG

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