Siemens business gets past 200m euro mark

Siemens SRL Romania, the local branch of the German Siemens Group, one of the leading industrial groups of the world, posted approximately 200 million euro turnover for the FY2004 ended September 30, a 21% growth from the previous year.

Siemens’ business in Romania is worth much more than that, considering that the German giant has nine more companies besides Siemens SRL whose portfolios range from electric parts and automotive industry software to lighting equipment, medical or IT&C equipment.

Siemens’ top performer on the domestic market remains the railway sector, where the Germans are concluding contracts after contracts with the main companies, CFR Calatori (passenger carrier), CFR Marfa (freight carrier) and CFR Infrastructure (rail infrastructure company), which is a constant source of growth for Siemens SRL’s operations.

“Siemens SRL expects 230 million euro turnover in 2005,” general manager Adrian Baicusi told Ziarul Financiar.

The German group’s strategic target in Romania is to attain a one billion euro turnover in the next ten years.

Siemens concluded the most important deal in the Romanian railway industry after 1990. This deal is known as the “Blue Arrow” in Romania. The Germans signed an over 321 million euro contract with CFR Calatori in 2001, which entailed the delivery of 120 Desiro self-propelled trains (medium haul trains for up to 400 km). The contract includes a provision that allows CFR Calatori to opt for a further batch of 104 trains worth more than 300 million euros.

Furthermore, the German company closed a 98 million euro contract with CFR Marfa for 40 Diesel locomotives this year.

Siemens is also engaged in a 45 million euro contract with CFR Infrastructura, which will see it upgrade the IT systems in the railway stations. The funding in this deal comes from ABN Amro Bank Romania via a loan secured by the State.

The German giant could soon leave its main rivals in the railway industry, General Motors, General Electric (US), Alstom (France) or Bombardier (Canada) far behind. Siemens is reportedly the only major investor interested to take over the locomotive manufacturing unit of the Electroputere Craiova plant, as part of an investor consortium that is in talks with the State Assets Resolution Authority (AVAS) for the acquisition of the entire company.
adrian.mirsanu@zf.ro