SHANGHAI: Not many multinational companies can talk about their operations in China, especially in Shanghai, with more confidence than German business giant Siemens.

Over the last decade, China has become a major pillar of Siemens' business in the Asia-Pacific region, one of the world's most dynamic areas.

All business sectors of Siemens worldwide are now solidly established in China, including information and communications, automation and control, power, transportation, medical solutions, lighting and household appliances, among which infrastructure and automation & control are the firm's core business segments here.

But few realize that Siemens' strong presence here is, in fact, nothing new for the company, as its co-operation with China dates back 130 years, when Siemens supplied the first pointer telegraph to China in 1872.

Its relationship with Shanghai followed, later in 1879, when Siemens installed China's first generator for the illumination of Shanghai Harbour. In 1904, Siemens opened in Shanghai its first representative office in China, which was to become the company's largest overseas subsidiary by the 1930s.

Ninety years later, in October 1994, Siemens Ltd China (SLC), a holding company overseeing Siemens' investments in China, was founded in Beijing, followed by the establishment of the SLC Shanghai Office in 1996, and Siemens' business in China has been on fast track ever since.

Perhaps statistics tell everything: Siemens' total long-term investment in China exceeded 500 million euros (US$485 million) by September 2001, and the company has now more than 40 subsidiaries, 26 regional offices and over 21,000 employees in China. Its overall sales in fiscal year 2001 reached 3.5 billion euros (US$3.39 billion) in China.

"China is already the third largest single market for Siemens, just behind the United States and Germany," said Dr Heinrich von Pierer, CEO of Siemens AG.

While Siemens' business is seeing tremendous growth throughout China, its operation in Shanghai stands out as a major highlight thanks to the striking performance of the involved business segments.

Siemens set its East China regional headquarters in Shanghai as early as 1985, with subsidiary offices being established later in Nanjing, Hangzhou and Wuxi.

About one-third of the Siemens companies operating in China are located in Shanghai, which is now the largest Siemens focus outside Germany, involving more than 12,000 employees.

A highlight of the company's strong local presence is Siemens Shanghai Mobile Communications Ltd (SSMC), which stands as a good example of Siemens' leading strength in the information and communications industry.

Over the past 10 years, SSMC has successfully participated in the construction of China's telecommunications infrastructure, especially for mobile systems and transmission backbone networks.

SSMC has completed over 34 GSM mobile network projects in 26 provinces. It is now among the top three mobile network suppliers in China. While the SSMC plant in Shanghai currently represents the only Siemens manufacturing base outside Germany for mobile phones, Siemens' mobile phone sales have also increased substantially in recent years, and since September 2000, have consistently ranked third in the Chinese market.

Another big contributor for Siemens' local business is the Automation and Control Group, which, together with its four operating companies in Shanghai, develops and produces high quality equipment for both domestic and overseas markets. Siemens offers state-of-the-art systems, innovative solutions and value-adding services for varied industrial sectors, including the steel and paper industries, food and beverage production, auto manufacturing, oil, gas and petrochemical sectors.

In Baosteel Shanghai, electrical and automation equipment provided by Siemens will give it the largest and most modern plate mill in China when it starts production in the Spring of 2005.

Siemens Automation is also playing an important role in China's heating industry by reducing the consumption of resources and emissions into the environment; Siemens and its partners have also successfully built more than 200 water and wastewater treatment plants in China.

Siemens' products and systems, for example, have helped Shanghai Songjiang Sewage Plant to improve water quality in the upper reaches of the Huangpu River to improve the life quality of 150,000 residents in the Songjiang area.

Siemens' other business operations in the region also show a strong momentum in China.

Siemens Building Technologies (SBT), for instance, helps the owners and operators of buildings achieve high productivity by ensuring safety and comfort in a secure environment.

The intelligent fire detection systems and advanced integrated voice evacuation systems of Siemens Building Technologies (SBT) have, for instance, largely helped secure the safety of the 88-storey Jinmao Tower, the tallest building in China and the third tallest in the world.

Meanwhile, Siemens plays a key role in China's power sector, as the company is now the largest import supplier for electric power customers in China - both constructing new power plants and modernizing existing ones.

The 2x900 MW super-critical steam turbine generation units, which are being constructed by Siemens for the Shanghai Waigaoqiao No 2 Power Plant, are going to be the largest coal-fired power generation units in China.

Four of the five operating companies of Siemens' Power Transmission and Distribution Group (PTD) are located in East China, producing high-voltage and medium-voltage switchgear, circuit breakers and vacuum interrupters.

As a single source supplier and system integrator, Siemens Transportation Systems Group combines the entire product spectrum from signaling and control systems to traction power supplies, as well as rolling stock for mass transit regional and main line services.

While Siemens has contributed significantly to the rail transport construction in Shanghai, including Metro Line 1 & 2 and Pearl Line, the German consortium Transrapid International, of which Siemens is a member, has been awarded the contract to build the world's first operating maglev line in Shanghai, whose commercial operation is scheduled to start at the beginning of 2004.

Siemens also shines in the field of healthcare equipment throughout Shanghai. It established Siemens Shanghai Medical Equipment (SSME) in 1992 as the only production base outside Germany to produce Computed Tomography (CT) scanners.

Siemens VDO Automotive is a partner to China's automobile industry, delivering electronic systems and components to customers like Shanghai Volkswagen and Shanghai General Motors.

While local competencies are effectively built up through extensive technology and management know-how transfer, Siemens aims to increase the local added value in close partnership with its local suppliers and help them meet the quality standards on a global basis.

"Siemens is proud to have contributed its cutting-edge technologies and expertise to foster the development of Shanghai," said Zhang Zhiqiang, general manager of Siemens East China operation.

As one of the largest foreign-invested enterprises in China, Siemens has meanwhile always committed itself to significant activities in the field of social engagement: to promote learning and research at universities, to train and educate its employees, to endeavour in environmental protection, and to contribute charitable donations.

"At Siemens, good corporate citizenship is always its global commitment," he said.

Over the years, Siemens has successfully become an integral part of the local economy. As a long-time, committed and trustworthy business partner of China, Siemens has witnessed the tremendous changes that have taken place since the opening-up started in 1978, and such a strong operation footing created over the past time well signals rosy prospects of the company's future in the country.