Siemens acquires a majority holding in two Chinese companies

Erlangen, Siemens Energy has acquired the majority holding in the Chinese metalworking company Yangtze Delta Manufacturing (YDM) and the Chinese aluminum foundry GISAP (GIS Steel & Aluminium Products), both headquartered in Hangzhou. With these acquisitions Siemens Energy is expanding its global production network for high-voltage circuit-breakers in China and optimizing its value creation chain from foundry work via machining to final product assembly. YDM and GISAP together posted revenue totaling approximately EUR65 million in 2008 and today have a combined work force of approximately 600. The purchase price was not disclosed.

“Over the long term we are anticipating a constantly high demand for high-voltage power transmission products in China and are thus securing the requisite capacities to maintain our successful business in this growth market,” said Udo Niehage, CEO of the Power Transmission Division within Siemens Energy. The demand for reliable, cost-optimized high-voltage products for the transmission of electrical energy continues to rise. Drivers are the significant increases in power demand in the newly industrializing countries and the energy-efficient integration of renewable energy sources into power supply networks.

Siemens has a leading position in China, the world’s largest market for power transmission equipment. The company is involved as a provider of innovative energy technology in numerous major infrastructure projects, including projects in the field of high-voltage direct current (HVDC) transmission.

The Siemens Energy Sector is the world’s leading supplier of a complete spectrum of products, services and solutions for the generation, transmission and distribution of power and for the extraction, conversion and transport of oil and gas. In fiscal 2008 (ended September 30), the Energy Sector had revenues of approximately EUR22.6 billion and received new orders totaling approximately EUR33.4 billion and posted a profit of EUR1.4 billion. On September 30, 2008, the Energy Sector had a work force of approximately 83,500. Further information is available at: www.siemens.com/energy