Siemens Plans to Expand Market Share in Emerging Economies
Siemens AG (SIE) predicted all its divisions will outpace industry growth in emerging markets in the next five years, allowing Europe’s largest engineering company to gain market share in nascent economies.
Siemens “is excellently positioned to capture an above- average share of the growth” in emerging markets, Managing Board Member Roland Busch told analysts on a webcast presentation in Shanghai today. The company didn’t provide specific targets for market share.
Siemens plans to drive growth in countries including Chile, Indonesia, Mexico, and Poland, in what it termed “second wave” emerging markets, while continuing to expand in the Middle East as well as in Brazil, Russia, India, and China, Busch said. Siemens today generates about 30 percent of revenue in emerging markets, where 25 percent of its workforce is located.
With economies such as China and India offering faster growth, cheaper labor and less saturated local markets, manufacturers including Siemens are shifting resources into these countries. Siemens more than doubled revenue in emerging markets to 21.7 billion euros ($31 billion) in five years, and doubled the combined number of employees in China and India.
The Munich-based manufacturer has added 31 manufacturing facilities in India and China in the past five years. The number of employees working at Siemens’s research and development departments in emerging economies rose by 6,900 in the past two- and-a-half years to 15,500, according to the company. Siemens had 416,000 globally employees as of March 31.
To contact the reporter for this story: Richard Weiss in Frankfurt at rweiss5@bloomberg.net. Ben Livesey at blivesey@bloomberg.net.
To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net.
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