Siemens AG to Establish Innovation Center in China
The German engineering and electronics conglomerate Siemens AG is establishing a new innovation center in China to further enhance their market presence in the Pearl River Delta region by next year. the company stated that the center will work across different divisions and will employ around 300 workers to conduct research on the new digitalization solutions for China and global markets.
Roland Busch, a member of the Siemens management board said that China’s surging wealth and ongoing urbanization process placed traditional labor intensive industries under huge pressure based on technology upgrade, high employee turnover and recruitment. Siemens plans to increase investment for research and development by 300 million euros to 4.8 billion euros globally as well as deploying more resources and technologies in the Pearl River Delta region especially in the Guangdong area one of China’s traditional manufacturing areas. the expansion plan includes building a rail equipment manufacturing base in Jiangmen and introduce a more advance factory equipment and traffic control systems, green building construction and management processes, a smart grid and electric vehicle manufacturing equipment in tis facilities in the Hengqin New Area.
Xiao Song, the executive vice president of Siemens (China) stated that their area is also making changes that will all further penetration in the second, third and fourth tier cities in Western China. China was been implementing a key national economic plan named Made in China 2025 in which the plan aims at enhancing the manufacturing capacity of the country by focusing on information technology, knowledge based green development and technological progress.
By upgrading China’s industrial operations to consume less energy in the future, as they will be optimizing machine usage, labor, product and service delivery. Several large manufacturers are in the midst if the upgrade boom and small and medium sized companies are now given a chance to benefit from this transformation. Siemens also announced last month that it has signed a memorandum of understanding that will provide vocational training and education services to Guangdong province human resources and social security department. This will help train more teaching professionals and to establish a new training facility that will satisfy a growing demand for better trained workers.