Siemens plans massive expansion drive in Asia

Siemens plans massive expansion drive in Asia

SINGAPORE (AFP): Germany's Siemens PN, the world leader in business telecommunications, announced a major expansion drive yesterday in Asia to more than double its regional market-share in five years.

"Our vision for Asia is to capture 20 percent of the market by the year 2000," said Werner Schmucking, executive vice president of the company, the business communications division of the giant Siemens AG.

Last year, Siemens PN logged sales of about US$215 million in Asia, where it has a market-share of nine percent. By 2000, the company plans to more than treble sales to $714 million, Schmucking told reporters here.

The company's decision to raise its presence in Asia was taken as part of "our global marketing plans and in view of the dynamic growth in Asia," said Schmucking.

A "center of competence" Siemens is running here would spearhead the new thrust in Asia, with an emphasis on developing and providing communications tailored to the region's burgeoning hospitality industry, he said.

In Singapore alone, 10,000 new hotel beds are to come on line in two years, he said, adding that as tourism grows, first-class hotels in the region are interested in upgrading room facilities to include such services as video conferencing, electronic and voice-mail, as well as telephones and faxes.

The company plans to join network openings in mobile communications, establish more business partnerships and provide advertising and marketing support to its clients, he said.

"We also plan to intensify our presence in Asia through our international account program. It is specially designed to meet the needs of multinational companies, which are focusing their new business activities in Asia or focusing on companies with headquarters in Asia," Schmucking said.

Siemens PN's international customers include Ford, Coca Cola, IBM, British Petroleum, Kodak, Nike, BMW and Digital.

Schmucking, who came here from a visit to Kuala Lumpur and next goes to Bangkok, did not specify an investment figure for the expansion drive, saying the size of investment would differ from country to country.

Siemens PN's Asian operations currently covers China, Hong Kong, India, Indonesia, Malaysia, the Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam.

The company provides a complete range of services including consultation, planning, installation and maintenance of telecommunication services to corporate clients.

Schmucking said Asian companies were "going global and seeking solutions to raise their efficiency and to remain highly competitive."

"The quest for greater competitiveness imposes new demands on company communications because the survival of a fast-moving business is based on the use of effective communication technology," he said.

A small delay in attending a telephone call could cost a company the customer's goodwill. "One of the competitive situations is to stay reachable, " the Siemens executive said.

Siemens PN, which commands the world number one position in business communications, counts AT and T, Northern Telecom, NEC and Panasonic among its main rivals in Asia, other company officials said.

With 24,000 employees, it generated a worldwide revenue of 4.71 billion dollars from 500,000 customers spread over 120 countries in 1994.