Siemens Energy has acquired the majority holding in the Chinese metalworking company Yangtze Delta Manufacturing (YDM) and the Chinese aluminium foundry GISAP (GIS Steel & Aluminium Products) for an undisclosed fee.
YDM and GISAP, both based in Hangzhou, together posted revenue totalling approximately €65m (£57m) in 2008 and have a combined work force of about 600. The acquisitions will enable Siemens to expand its global production network for high-voltage circuit breakers in China.
‘Over the long term we are anticipating a constantly high demand for high-voltage power transmission products in China and are thus securing the requisite capacities to maintain our successful business in this growth market,’ said Udo Niehage, chief executive of the Power Transmission Division within Siemens Energy.
According to Siemens, the demand for reliable, cost-optimised, high-voltage products for the transmission of electrical energy continues to rise. Drivers are the significant increases in power demand in the newly industrialising countries and the energy-efficient integration of renewable energy sources into power supply networks.