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German electronic giant Siemens has announced the establishment of a major new research facility in China.

 

Siemens China Corporate Technology, with more than 200 researchers and two innovation labs in Beijing and Shanghai, and Siemens Corporate Research in the United States are described as the two "largest and most significant" overseas research and development centers of the Munich-based company.

 

The move came after Siemens China reported a record 15-percent increase in sales, which totaled 44.3 billion yuan for the 2005 fiscal year. The figure for the 2006 fiscal year which ended on Sept. 30 is to be released after a top management meeting on Wednesday.

 

"I can assure you it will be a happy meeting," president and chief executive Richard Hausmann told Xinhua on Tuesday.

 

Siemens will inject 80 million euros into the new research facility and expand its research staff to 300 in next three to five years.

 

"The market of China is very innovation demanding. I am personally convinced that China is making a transition from production-center to innovation-center," said Hausmann.

 

The Chinese researchers headed by Arding Hsu, vice president of Siemens China, would focus on innovations that suit emerging markets like China and have potential to move into the global market.

 

"Priorities will go to innovations that are simple, maintenance friendly, affordable, reliable and timely," Hsu said.

 

The latest company report says urbanization and the aging population will fundamentally influence the future of China and pose challenges in efficient utilization of scarce resources, environmental protection, affordable health care, mobility and the growing need for security.

 

The new division in China will focus on research activities concerning energy and the environment, automation, transportation in megacities, public and private infrastructure and health care.

 

"China plays a more and more important role in Siemens global strategy.... We need to be present here, grab the trends and work with local institutions to provide products and solutions based on these trends," Hausmann said.

 

Siemens employs 47,000 researchers worldwide, accounting for more than 10 percent of its staff. About two-thirds of their projects concern automation, energy, transportation, medical care, information and telecommunications, lighting and household appliances.

 

"A lot more of our business entities want Chinese people to do basic research because they want the products to fit the Chinese market," said Hermann Requardt, head of Siemens Corporate Technology which administers seven divisions worldwide.

 

During 2005 fiscal year, Siemens poured 5.2 billion euros, about seven percent of its total revenue, into research and development.

 

Calling China business "the locomotive of Siemens worldwide", Hausmann said that Siemens China would strive for sustained growth by strengthening local procurement and research and development and expanding local offices through mergers and acquisitions.

 

The company has beaten off fierce competition to win contracts for public utilities for the 2008 Beijing Summer Olympic Games, including the Tianjin Olympic Central Stadium, the Beijing National Aquatics Center, the 140-kilometer Beijing-Tianjin high-speed rail link and the expansion of Beijing Capital International Airport.

 

(Xinhua News Agency November 1, 2006)