BSH Plans China Expansion
Jun 22, 2004
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German-based appliance maker Bosch und Siemens Hausgerate (BSH) said it aims to invest heavily in the Chinese market, targeting high-end consumers with two competing international brand names.

"The market is very developed, and it will be a top priority for us in the coming years," said Roland Gerke, president of BSH (China).

According to Mr. Gerke, the company plans to invest U.S. $80 million to $100 million in China in the next 3 years. The capital will be used to build more production facilities, bring all BSH core products to market, enhance local research and development capability, and employ more people.

BSH currently produces washing machines, refrigerators, and electrical water heaters in China and holds more than 50 percent of the high-end washing machine market.

BSH will begin production of cooking appliances in China in the next quarter, and small appliances in coming years. The business has three production facilities in Wuxi in Jiangsu Province and Chuzhou in Anhui Province, and is building a production base in Dalian in Northeast China's Liaoning Province.

Mr. Gerke said BSH is investigating a location for a new small appliances facility in Qingdao, where Chinese-based appliance makers Haier, Hisense, and Aucma are located. A global purchasing center in Nanjing, capital of Jiangsu Province, is planned this year. Mr. Gerke said the procurement volume of the center will reach U.S. $700 million to $1 billion a year in the long-term.

The company also announced it will introduce the Bosch brand to China in December. BSH currently operates two brands in Europe, but in China all products are sold with the Siemens brand.

Jack Wu, general manager of sales with BSH (China), explained that the penetration rate of the Siemens brand in China is already very high, so the introduction of internal competition between two brands would stimulate the market. (China Daily)

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