Han Ximin

SIEMEN’S leading position in the medium-voltage power transmission business in southern China was strengthened with the opening of a new factory in Shenzhen yesterday.

With the new facility, Siemens Medium Voltage Switchgear Co. Ltd. Shenzhen (SMSS) will increase its production of medium voltage switchgear to 4,500 this year and 7,000 in 2008.

Established in 2005, SMSS is a joint venture of Siemens Power Transmission and Distribution Group and Shenzhen Baochang Power Co. Ltd. Its total investment is 135 million yuan (US$17.33 million), with Siemens its majority shareholder. It occupies a land area of 38,000 square meters.

The demands placed on the reliability and efficiency of power distribution is high — and as the demand for power increases, so do the demands on medium voltage switchgear itself. To meet increasing demand and better serve the market, SMSS began construction of a 3-phase extension to its factory in Guanlan. The first phase with a capacity of 4,500 panels was completed in December 2006.

The strategic investment in the new factory indicates the importance of the South China market for Siemens and its commitment to develop China’s power market.

With the establishment of the factory, Siemens PTD has established a Shenzhen-centered network, covering Guangdong, Guangxi, Yunnan, Guizhou, Fujian and Hainan.

De. Schubert, SMSS general manager, said: “China is always a key strategic market for Siemens PTD, SMSS has been based in South China for almost two years. We are very proud of what we have contributed to the market. Now to meet the increasing demand of customers, we have decided to further increase our production and service capabilities.”