Siemens: All growth in emerging markets over the next 5 years

Shang Chunyan May 11, Auer, chief executive of Siemens Metallurgical Technology, said in Essen, Germany, that it would invest about 35 million euros in years to China and India in the future to expand local production, engineering and project management, and that two-thirds of the input would be for China. "After the financial crisis, competition in the global machinery manufacturing sector has increased markedly." Companies in China and India are successfully introducing their own products to the market at an unprecedented rate.　　Werner Auer said. While High-tech countries such as Europe, the US and Japan continue to focus on the efficiency and flexibility of the manufacturing process, China and India want to produce steel to meet the infrastructure requirements with simpler, cost-saving equipment. "About 10.5 billion euros have been invested in building such equipment.　　Werner Auer pointed out. According to Siemens statistics, China and India accounted for 12% and 3% of global market capacity in 2009 respectively.　　Siemens expects the proportion to grow to 25% and 8% by 2015. "50% of the world's steel is produced by China, and China and India are certainly the future markets, although there is no growth in capacity." The Chinese Government's policies, particularly those in the ' Twelve-Five ' plan for industry adjustment and the elimination of backward capacity, and the demand for infrastructure in China and India, deserve special attention from Siemens. "For the next five years, all growth will occur in emerging markets," said Tim Dawidowsky, head of foundry and rolling at Siemens David Metallurgical Technology. Winning the markets of China, India, Brazil and the Middle East is crucial to our future success.　　"For Siemens, in addition to the attractive market, the pressure from China's domestic rivals is the reason for the strategic shift," he said. In China, some local design institutes and engineering contractors are developing their technical capabilities through small applications and opportunities to improve existing solutions, and they have a good relationship with Chinese state-owned steel companies and are expanding their client base in the BRICS, such as China Metallurgical Group. "These companies will be the future competitors of Siemens. "David said. In addition, advanced equipment suppliers with experience in large-scale projects are considered by Siemens as potential competitors. "The equipment manufacturers that enter the system integration business also have the will to become device providers." such as China's first heavy machinery group, Citic Heavy industry and so on. "Siemens must face competition from these local rivals," he said. "Despite the relatively low demand for solutions in emerging markets, the average market price in emerging markets is about 50% of our previous price, which means that only cheap labor costs plus some local purchases are not achievable," David said. This requires us to make new designs suitable for emerging markets, and to shrink existing solutions is not able to remain competitive and succeed in these markets. ”