Siemens enters local fire protection market

JAKARTA (JP): Swiss fire protection equipment maker Cerberus AG, a unit of the Germany-based technology company Siemens AG, has set up a joint venture offering fire protection and security systems to buildings in the country.

Cerberus president for the Asia-Pacific region Michael T. Felder said on Wednesday the creation of the joint venture was part of the company's efforts to lead the fire protection market in the region in the next five years.

Felder said the company currently saw weak demand in the industry due to the monetary crisis but foresaw a huge potential market once the region's turbulence subsided.

"Despite the crisis, we are continuing (our business) here, because our business is for the long term," Felder said.

The joint venture, called PT Cerberus Indonesia, is 90 percent owned by Cerberus and 10 percent by the company's former agent PT Cerindo Kencana Makmur. Cerindo has an option of increasing its stake to 30 percent under the joint venture deal.

Felder said the company started to pay more attention to the Asian market in 1995 after it succeeded in taking control of the European and American markets.

Siemens took over the company from Swiss' technology company Electrowatt last month and put it under its Siemens Building Technologies division.

Felder said Cerberus opened four offices in the region last month, in Indonesia, Thailand, Australia and Malaysia. It promises to open offices in the Philippines and Taiwan in the near future.

The company provides equipment like fire detectiors, access controlers, closed circuit televisions, and gas and extinguishing systems. Most are imported from its factories in Europe and the United States.

It also provides services like designing fire and security systems and systems maintenance.

Felder said Cerberus' products were among the five best sellers in the region alongside competitors including Chubb, Wermold, Johnson Controls, Hinne, Nohmi, Honeywell and Thorn.

Company general manager Michael H. Connelly said prior to the crisis, the local market's demand for fire and security system was estimated at US$70 million per year. (jsk)