Siemens Acquires Chinese CNC Water Technology
Siemens has expanded its solution business for water treatment in China with the acquisition of CNC Water Technology, Inc., Beijing, a Chinese system integrator.
With 120 employees, including 70 engineers, the CNC Water Technology is exclusively active in the water sector and primarily in industrial filtration applications.
“The corporation has a very solid reputation in the Chinese water market,” said Roger Radke, head of Water Technologies, a division of the Siemens Group Industrial Solutions and Services (I&S). “With the acquisition we can combine Siemens’ water treatment products and systems with CNC´s leadership position in large water treatment and seawater desalination projects in China, to dramatically develop the world’s potentially largest and fastest growing market.” Both parties agreed not to disclose the purchase price.
“The synergies between CNC and Siemens will form a new combination to serve customers both in municipalities and industries,” said Radke. With a growth rate of about 15% per year, the Chinese water market is projected to be the second largest market after the US. “This will also be driven by infrastructural needs and upcoming mega-events, such as the 2008 Beijing Olympics and Expo 2010 in Shanghai,” said Radke.
In the mid term, Siemens intends to use China as one of its manufacturing platforms in the region. The strategy includes transfer of technology and manufacturing into China, as well as further acquisitions and partnership agreements with system integrators, engineering and service companies. Through customer relationships and interactions with the local Design Institutes Siemens gains the required technical acceptance in the market.