Siemens plans to build water-treatment plant
By Chen Qide (China Daily)
Updated: 2005-08-24 05:54

SHANGHAI: Siemens plans to build a plant in Tianjin next month to manufacture sewage-treatment products and systems for the Chinese market, the company announced yesterday.

The project is part of Siemens' planned investment in the Chinese market over the next few years but the company did not provide more details.

"The partners agreed on the project at the last board meeting," said Hans Werner Linne, head of Siemens Industrial Solutions and Services Group (I&S) in China.

I&S has a 50-50 joint venture with Tianjin National Water Engineering & Equipment Co with a registered capital of US$400,000, which sold sewage-treatment products and systems valued at US$3 million last year.

"The sales figure is too low for such a huge market. If things go smoothly, the new plant will be operational next year," said Linne.

Joergen Ole Haslestad, president of Siemens I&S, said the company plans to localize its technologies and products in China by investing heavily.

"We will seek partners to launch more joint venture projects to boost our share of the Chinese market," Haslestad said.

The objective of broadening co-operation is to concentrate more on developing innovative products and process solutions for China's water and waste-water industry.

"The Chinese market for water supply and waste-water treatment needs local expertise and local solutions," said Linne.

"Setting up joint ventures is a great opportunity to strengthen Siemens' current position in the rapidly-growing Chinese market."

Siemens and its Tianjin partner have worked together on more than 10 system integration and waste-water treatment projects.

The company anticipates that at least 800 to 900 new treatment plants for drinking water will be needed in towns and cities by 2010 to raise annual drinking water capacity by 3 per cent.

The number of waste-water treatment plants would have to be more than doubled in the coming five years from the current 700 to increase waste-water purification capacity by 10 per cent annually.

Currently, Linne said, only about half of the municipal and industrial waste-water in China is treated.

(China Daily 08/24/2005 page10)

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