For the trade press
Beijing - Wednesday, September 06, 2006
Siemens Expands Water Business with Acquisition of Chinese CNC Water Technology
Siemens expands its solution business for water treatment in China with the acquisition of CNC Water Technology Inc., Beijing, a successful Chinese system integrator. With 120 employees, including 70 engineers, the company is exclusively active in the water sector and primarily in industrial filtration applications. "The corporation has a very solid reputation in the Chinese water market", said Roger Radke, head of Water Technologies, a division of the Siemens Group Industrial Solutions and Services (I&S). "With the acquisition we can combine Siemens' water treatment products and systems with CNC´s leadership position in large water treatment and seawater desalination projects in China, to dramatically develop the world's potentially largest and fastest growing market."
Established in 2002 to introduce membrane filtration treatment process to the seawater desalination and wastewater treatment market in China, CNC relied on its technical competencies and particularly strong experiences in ultra-filtration and reverse osmosis membrane fabrication to quickly become a market leader. Since 2002, it has successfully executed some of the largest projects in China for seawater desalination industrial wastewater and municipal water treatment, covering a wide industry range, including petrochemicals, refining, power generation, and steel production. Beijing bases CNC Water Technology Inc. is a 100% owned company of the CNC (HK) Water Technology Limited., Hong Kong, of which Siemens has aquired the majority with 70% ownership. An option has been agreed upon the parties granting Siemens the right to aquire the remaining 30 per cent of the shares after three years.
"The synergies between CNC and Siemens will form a new combination to serve customers both in municipalities and industries", Radke said. With a growth rate of about 15% per year, the Chinese water market is projected to be the second largest market after the US. "This will also be driven by infrastructural needs and upcoming mega-events, such as the 2008 Beijing Olympics and Expo 2010 in Shanghai", Radke said. In the mid term Siemens intends to use China as one of its manufacturing platforms in the region. The strategy includes transfer of technology and manufacturing into China, as well as further acquisitions and partnership agreements with system integrators, engineering and service companies. Through customer relationships and interactions with the local Design Institutes Siemens gains the required technical acceptance in the market.
Siemens Water Technologies including the USFilter Group of Companies delivers cost-effective, reliable water and wastewater treatment systems and services to municipal, industrial, commercial and institutional customers worldwide. The division "Water Technologies" is part of Siemens' Industrial Solutions and Services Group (I&S) which is a system and solution provider for industrial and infrastructure facilities and global service provider for the plant and projects business covering planning, installation, operation and the entire life cycle. In fiscal 2005 (to September 30) I&S employed a total of 31,700 people worldwide and achieved total sales of EUR 5.390 billion.
Visit company websites at http://www.usfilter.com , and http://www.siemens.com/water