Collaboration To Manufacture Medium-Voltage Switchgear In The South Of China

Erlangen, Germany — Siemens Power Transmission and Distribution (PTD), Erlangen, and Shenzhen Baochang Power Supply Co. Ltd. have formed a joint venture to manufacture medium-voltage switchgear for the south of China. This move gives Siemens PTD access to the southern Chinese market for power supply systems, a market currently dominated by regional suppliers. Baochang Power Supply Co. Ltd. was founded in Shenzhen in 1991 as a builder and operator of power plants. In 2004 the company achieved sales of around EUR 140 million. The new joint venture has been named Siemens Medium Voltage Switchgear Co. Ltd. (SMSS).

A new manufacturing facility will be built in Shenzhen, the headquarters of the joint venture, to produce the medium-voltage switchgear. Future production will be closely associated with the existing joint ventures Siemens Medium Voltage Switching Technologies Ltd. (SMVS) in Wuxi and Siemens Switchgear Co. Ltd. (SSLS) in Shanghai.

Luis de Sousa, head of the Medium Voltage Division at Siemens Power Transmission and Distribution commented: "China's tremendous economic growth in the last few years has resulted in a large demand for energy. That is why China is planning further investment in its energy infrastructure. Our new joint venture will not only enhance our market position, but together with our partner Baochang, will help to increase stability, reliability and availability of the country's power supply."

Siemens PTD is active in all fields of power transmission and distribution in China, and has three subsidiaries and eight further joint ventures in addition to this new cooperation with Baochang, giving the Group considerable manufacturing capacity in the country. PTD China is headquartered in Peking and employs a staff of 2,300. In the last fiscal year, 2004, they achieved sales of EUR 411 million. In order to be near to its customers, PTD in China has 17 sales offices located in, among other places, Peking, Shanghai, Guangzhou, Chongqing, Chengdu, Nanjing, Wuhan, Xi'an, Jinan, Shenzhen and Fuzhou.

The Siemens Power Transmission and Distribution Group (PTD), with its Head Office in Erlangen (Germany), is one of the leading global players in its market sector. As a product supplier, system integrator, solution designer and service provider, Siemens PTD ensures - for utilities and industry alike - the efficient and reliable transmission of electrical energy from the power plant to the consumer. With a worldwide workforce of about 19,200 and represented in more than 70 countries, in the fiscal year 2004 (year-end September 30) PTD achieved sales of EUR 3.6 billion and a Group profit of EUR 238 million. Further information at: www.siemens.com/ptd.

Source: The Siemens Power Transmission and Distribution Group