Tongji University, Siemens and Asklepios Kliniken sign Joint Venture for Sino-German Friendship Hospital - More than EUR 100 mn (CNY 1 bn) invested

Shanghai’s Tongji University, a national key university directly under the State Education Ministry, Siemens and Germany-based hospital operator Asklepios Kliniken will team up to establish a joint-venture hospital under a public-private partnership structure in China. The hospital shall be launched before the World Expo 2010 and could be expanded to a capacity of over 500 beds thereafter. More than EUR 100 mn (CNY 1 bn) will be invested in the hospital which will be located in the Shanghai International Medical Zone. With this project the partners aim to establish a cutting-edge and fully digital general hospital which provides world-class healthcare services. The joint-venture agreement was signed today in Beijing in the presence of the President of the People’s Republic of China Hu Jintao and German Federal President Dr. Horst Köhler.


As early as in November 2005, the project had gained highest attention on the political stage, when the President of the People’s Republic of China Hu Jintao and German Federal President Horst Köhler were present at the conclusion of a Memorandum of Understanding in Berlin. The City of Shanghai has included the Sino-German Friendship Hospital in its 11th Five-Year Plan as one of the two key projects for healthcare development until 2010.



“The joint-venture contract marks an important milestone in the realization of this landmark project. We see enormous potential for expanding public-private partnerships to other hospital projects in China and beyond,” said Johannes Schmidt, Managing Director of Siemens Financial Services, whose subsidiary Siemens Project Ventures invests equity in the Sino-German Friendship Hospital as joint venture partner. “All partners contribute their particular core competencies: Tongji University adds its medical and scientific know-how, Siemens its combined expertise in structured finance, clinical workflow, and hospital technology solutions and Asklepios Kliniken its experience as an operator of more than 100 hospitals”, Schmidt added.



The establishment of the Sino German Friendship Hospital in Shanghai is a proof point of Siemens’ solution approach in the healthcare sector, explains Dr. Siegfried Russwurm, member of the executive management board of Siemens Medical Solutions: “Together with our partners, we pave the way towards a high-quality, patient-centered medical care in China – highly efficient with the best and most effective processes. The Sino-German Friendship Hospital will impressively show that trendsetting medical technologies and powerful IT for process optimization play a decisive role to reach this goal.”



Professor Wan Gang, President of Tongji University and designated Chinese Minister of Science and Technology, commented: “As the initiator of the project, Tongji University is now celebrating its 100th Anniversary. It is very meaningful that we are doing a historic project in 2007 which is similar to Dr. Erich Paulun’s work 100 years ago, in the sense that we are contributing to construct a new bridge between German medicine and Chinese people by setting up the Shanghai Sino-German Friendship Hospital. We believe that the parties of this hospital-project will work together to realize their common vision and interests, and to promote the development of medical technology and services in China.”



“The joint venture with two distinguished partners demonstrates the international approach of Asklepios to an international health care market. We are confident that our expertise in managing hospitals worldwide successfully will benefit patients in China as well”, said Dr. Bernard Broermann, sole shareholder of Asklepios Kliniken.



Siemens China President and CEO Dr. Richard Hausmann emphasized that Siemens is making great efforts to provide tailor-made products and solutions to local customers in China in both high-end and low-end market segments. “While the Sino-German hospital project speaks for our capabilities and commitment to meet the needs of China’s leading medical institutions, our recent 10 million USD investment into the development of rural healthcare solutions as part of the Clinton Global Initiative highlights our engagement in the development of basic and widely affordable solutions as well.”


The Shanghai Sino-German Friendship Hospital (SGFH) joint venture will construct and operate the hospital.

Tongji University will hold 46 percent of the shares. Today, the university has a medical school, a dental medical school and six affiliated hospitals with more than 4000 beds in Shanghai providing medical services to the public. SGFH, as a general hospital, will be developed as its 7th affiliated hospital that will play leading role in medical sciences, technology and sciences in Shanghai. Besides the medical aspects, Tongji is the best in China for city planning and architecture. This strength will be embodied in the development of SGFH-project.

Siemens contributes to the development and funding of the project in various ways. Siemens Project Ventures, a part of Siemens Financial Services, will hold 40 percent of the shares and will take a leading role in structuring of the financing. Siemens Medical Solutions Group will join forces with Siemens Project Ventures and will take part in the establishment of world-class clinical workflows with latest medical equipment and medical IT technology.

Asklepios Kliniken, one of Germany’s major private hospital operators with hospitals worldwide, will hold 14 percent of the shares and will operate the Sino-German Friendship Hospital in cooperation with Tongji.

In addition, Tongji University has concluded a partnership agreement covering staff training with the Medical University in Hannover (MHH), Germany. The first trainees in this program for 12 medical doctors and 5 nurses will finish their 2- year training in MHH and returne to Tongji this year. In 2006 similar agreements have been concluded with Berlin’s Charité Hospital and the second group of trainees will go there soon.

To ensure high-quality healthcare services, the hospital will be designed, built and managed in line with international standards using the latest scientific and technological knowledge. The fruitful interaction between technical innovators and clinical users will be supported by the establishment of a new Siemens Medical Solutions’ core research and development center for medical imaging technology which will also be located in direct proximity to the hospital in the Shanghai International Medical Zone.


The first construction phase of the Sino-German Friendship Hospital is scheduled to be completed in 2009. The hospital is envisaged to commence operations before the World Expo 2010.



Press contact
Information number: SFS 2007.5e
Siemens Financial Services
Press Office
Dr. Hartmut Hübner
Markus Wierl
D-80335 Munich
Phone: +49-89-636-36070; Fax: -35485
markus.wierl@siemens.com


About Siemens Financial Services GmbH
With its roughly 1,800 employees and an international network of financial companies coordinated by Siemens Financial Services, Munich, the Siemens Financial Services (SFS) Group offers a broad range of financial services. This covers everything from sales and investment financing to treasury services, fund management and insurance brokerage. SFS’s key customers are above all internationally active industrial and services companies, as well as public-sector operators. More information under: http://www.siemens.com/finance.



Siemens Project Ventures GmbH, a fully owned subsidiary of Siemens Financial Services, invests equity in infrastructure projects worldwide. SPV’s investments focus on the power, telecommunication and transportation sectors. SPV currently participates in seven different projects with a total project volume of about USD 4 billion.



Siemens Medical Solutions is one of the world’s largest suppliers to the healthcare industry. The company is known for bringing together innovative medical technologies, healthcare information systems, management consulting, and support services, to help customers achieve tangible, sustainable, clinical and financial outcomes. Recent acquisitions in the area of in-vitro diagnostics – such as Diagnostic Products Corporation and Bayer Diagnostics – mark a significant milestone for Siemens as it becomes the first full service diagnostics company. Employing more than 41,000 people worldwide and operating in over 130 countries, Siemens Medical Solutions reported sales of 8.23 billion EUR, orders of 9.33 billion EUR and group profit of 1.06 billion EUR for fiscal 2006 (Sept. 30). Further information can be found by visiting: http://www.siemens.com/medical.



Tongji University
Tongji University, formerly German Medical School, was established in 1907. It is one of the oldest and most prestigious institutions of higher education in China. It is now a comprehensive university with seven disciplines in engineering, science, medicine, management, arts, law and economics with strength in architecture, civil engineering and oceanography. The university has developed close links with industry. The graduates from Tongji University are much sought after by employers throughout the country. The university now registers over 41,000 students at all levels from certificate and diploma courses to Bachelors Degrees, Masters, PhD programs and post doctoral attachments. There are over 4200 academic staff for teaching and/or research, among whom there are 6 Members of Chinese Academy of Science, 7 Members of Chinese Academy of Engineering, over 530 professors and 1300 associate professors. The university offers diverse courses in its 81 Bachelors Degrees, 151 Masters, 58 PhD programs and 13 post doctoral mobile stations. As one of the state leading centers for scientific research, the university has 5 state key laboratories and engineering research centers



Asklepios Kliniken GmbH
Asklepios is one of the leading international clinic chains. The group is responsible for more than 90 facilities, more than 30 day hospitals, 20,000 beds and 34,000 employees in Germany, Europe, the US and in the future also in China. Every year about one million patients entrust their health to Asklepios. With these characteristic numbers and a turnover of about 2.3 billion euros of the overall group, Asklepios is the biggest private clinic chain in the Federal Republic of Germany and in Europe. In the Hanseatic city, the most important clinic market in Germany, the Asklepios Clinics are the biggest private employers with about 11,000 employees. Asklepios Clinics in and around Hamburg are located in the following areas: Altona, Barmbek, Harburg, Klinikum Nord (Ochsenzoll / Heidberg area), St. Georg, Wandsbek, Westklinikum Rissen, Bad Oldesloe, and Bad Schwartau.



Siemens in China
Siemens is one of the most well-known, liked and respected corporate citizens in China. And this is not surprising given Siemens long history of co-operation dating back to 1872, when the company delivered China’s first pointer telegraph. Siemens has witnessed the tremendous changes that have taken place since China’s opening up and reform drive and is proud to be a reliable, committed, and trustworthy partner in China’s development. All business segments of Siemens worldwide are active in China including Automation and Control, Power, Transportation, Medical, Information and Communications, Lighting as well as Household Appliances. Core business areas are infrastructure development and industrial solutions. To date, Siemens has established more than 70 operating companies and 60 regional offices in China. These offices are the backbone of Siemens’ regional marketing strategy and ensure that the company is close to its customers to be able to respond quickly and efficiently to their needs. With 43,000 highly qualified local staff, Siemens is one of the largest employers amongst foreign invested enterprises in China. The company has been striving to become a fully integrated part of the Chinese economy and is committed to continue its investment to develop and extend local manufacturing, engineering, R&D, software development, as well as procurement activities to ensure the sustainable and profitable growth of its business in China.