To overcome the global economic crisis, stimulus programs of around RMB 19 trillion have been announced and, in some cases, already initiated. Roughly one third of this total – or more than RMB 6.5 trillion is slated for investment in infrastructure projects. The remainder is accounted for example by tax cuts, for private households, and other governmental non-infrastructure related measures. The total volume of planned infrastructure expenditures relevant for Siemens comes to about RMB 1,400 billion globally. Given the company's current average market share worldwide, these expenditures can, therefore, be expected to generate new orders for Siemens of around RMB 140 billion, of which approximately RMB 60 billion will likely come from environmental technologies. In fiscal 2008, Siemens' environmental technologies generated revenue of around RMB 180 billion. The company intends to increase this figure to RMB 238 billion a year by 2011.
In response to stimulus plans announced worldwide, Siemens has already enhanced footprints in many countries through additional investment in these areas. In November 2008, the Chinese government rolled out a RMB 4 trillion stimulus package to prop up the slowing economy. Less than three months later, Siemens announced an additional investment of RMB 1.35 billion in expansion of production capacities for alternative energies over the next three years, on top of the RMB 10 billion mid-term investment pledged in 2006. "The century-long partnership with China has made us the company that understands China the most among all international corporations," said Richard Hausmann, CEO Siemens Northeast Asia and President & CEO of Siemens China. "By widely applying our leading technologies and solutions across the country, we have already become an integral part of China's economy. Especially in a time of a slowing economy, it is imperative that we join the concerted efforts of the country to overcome those daunting challenges. Signs are already that China's economy is catching up and the 8 percent GDP growth target for 2009 is in reach."
With priorities on increased infrastructure spending, construction of an ecological environment, expanded social safety net and scientific innovation, China's stimulus package started showing first results. Some major orders were scored by Siemens in China in the past few months, constituting a remarkable share of the infrastructure development of the country. Earlier this year, Siemens' signaling, train control and a propulsion systems have been equipped on China's first intercity mass transit - the Guangzhou-Foshan Line; a new transformer producing facility was unveiled in Hubei Province to further support the power grid construction in Central China; Siemens also signed a contract with a local steel producer to supply equipment with a total volume at three-digit-million yuan. "Our Siemens portfolio well fits to the macro stimulus plan of the Chinese government," said Richard Hausmann. "The planned investments by China in infrastructure, energy and healthcare account for approximately 50 percent of the total stimulus package. These are all the areas in which we are strong. As the program carries on, we see great potentials to further expand our share in the package."
By analysis, the share of China's stimulus program relevant for Siemens is approximately RMB 240 billion, the second largest in the world and only after the U.S. (slightly more than RMB 800 billion) and followed by Germany (about RMB 48 billion). "China's demand for environmental technologies will remain robust. This will continue to be a strong growth area of Siemens in China," said Hausmann commenting on the recent launch of the company's first wind power equipment manufacturing plant in Shanghai which marks its entry into China's wind market. "Our roadmap to the goal is clear: to form a strategic alliance with the Chinese government, to enhance cooperative R&D with local partners, and to boost investment in the new energy industry."
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Siemens AG (Berlin and Munich) is a global powerhouse in electronics and electrical engineering, operating in the industry, energy and healthcare sectors. The company has around 420,000 employees (in continuing operations) working to develop and manufacture products, design and install complex systems and projects, and tailor a wide range of solutions for individual requirements. For over 160 years, Siemens has stood for technical achievements, innovation, quality, reliability and internationality. In fiscal 2008, Siemens had revenue of €77.3 billion and a net income of €5.9 billion (IFRS). Further information is available on the Internet at: www.siemens.com.
Siemens in China
Siemens is one of the most well-known, liked and respected corporate citizens in China. Marked by the delivery of China's first pointer telegraph in 1872, it is among the earliest international companies to pioneer co-operation with China. Over more than a hundred years, Siemens has stood for technical achievements, innovation, quality, reliability and internationality. Presently, Siemens maintains more than 90 operating companies and 61 regional offices in China, representing all business sectors of Siemens worldwide – Industry, Energy and Healthcare. These offices, together with the Regional and Provincial managers, are the backbone of Siemens' regional strategy and ensure that the company is close to its customers to be able to respond quickly and efficiently to their needs. With more than 43,000 highly qualified local staff, Siemens has become one of the largest employers amongst foreign invested enterprises in China and an integral part of the Chinese economy. Today, by applying a wide array of environmental portfolio and innovative solutions in the cooperation with local partners, the company is committed to contributing to the sustainable development of the country. In Fiscal 2008, sales and new orders of Siemens China were RMB 57 billion and RMB 65.5 billion respectively.
For further information please contact:
Mr. Fred Duan Wei
Tel: +86-10-6476 3102
Fax: +86-10-6476 4922
E-mail: wei.duan@siemens.com
Ms. Cecilia Wang Xin
Tel: +86-10-6476 3263
Fax: +86-10-6476 4922
E-mail: cecilia.wang@siemens.com
Ms. Carrie Fang Shanshan
Tel: +86-10-6476 3736
Fax: +86-10-6476 4922
E-mail: shanshan.fang@siemens.com
For more information, please visit: www.siemens.com.cn/press