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.