Siemens to Reorganize Water Business
Water Technologies division will be divided into four segments
Siemens Water Technologies plans to reorganize its worldwide business. The changes will involve transitioning its 28 mainly technology-oriented business units to create four new segments aligned to specific markets and target groups. “By integrating our business in this way, we will lay the foundations for further growth in water business and expansion of our position in the market,” explained Joergen Ole Haslestad, CEO of the Industry Solutions Division (IS). In the future, the Water Technologies business of IS will be divided among four segments: industry, municipal, chemical feed and services.
In the new organization, the four segments will drive growth by combining responsibility for service development with product management. There will be a direct connection between technology and service offerings. “As a result of this integration, we will enable joint development of our service portfolio with all its products, systems and solutions,” Haslestad said.
In future, the industry segment will offer products, services and solutions for process water, wastewater, recycle and reuse and waste-to-energy in the biopharmaceutical, chemical, food, microelectronics, oil and gas industries, and power, as well as in pulp, paper, open-cast mining and the production of iron and steel. The municipal business segment will bear worldwide responsibility for products, solutions and aftermarket services for drinking water, wastewater and reuse, as well as for the automation of sewage plants and pipeline networks. The chemical feed segment will continue to offer its disinfection portfolio to industry and communities worldwide.
In the context of the reorganization of Water Technologies, Haslestad wants to tighten up the way in which the segments are run, in addition to having a stronger orientation to the market and focusing on target groups. “We will structure the complex business taken over from USFilter more clearly and make it more effective by centralizing processes and standardizing the portfolio,” Haslestad said. “We intend to continue growing more quickly than the market, which is currently expanding at a rate of 6% per year worldwide – and we want to achieve this goal especially in individual regions such as China and India where the growth potential is double the global average. Now that we have a central platform in Singapore for our business in Asia and in Dubai and Abu Dhabi for the Middle East, we will pursue this strategy in Europe as well.”
Before the end of 2008, the aim is to centrally coordinate water business for Europe in order to accelerate regional expansion and intensify the company's local presence.