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- April 27, 2012
- Press kit
- Business/economy
- Presseinformations: 2
Bosch China continues steady growth Deepening the roots for sustainable development in local market
- Sales up by 13 percent to 42.3 billion CNY in China
- Record high investment of 4.1 billion CNY in China
- Supporting China's sustainable development by providing green technology and enhancing business presence in West China
Beijing – The Bosch Group, the leading global provider of technology and services, generated consolidated sales of 42.3 billion CNY in China in 2011 with a growth of 13 percent compared to the previous year. “The steady growth in China is the consequence of our continuous investment and our consequent localisation strategy” said Uwe Raschke, member of the board of management with responsibility for Asia-Pacific. “With such growing momentum, China will continue to be one of the most important driving forces for the further development of the Bosch Group”, he added.
This fast and steady growth was attributed to the success in all three business sectors. The largest business sector of Bosch China, Automotive Technology, generated sales of 24.9 billion CNY with a growth rate of 7 percent, which is again above the average market growth. Thanks to the rising demands brought by an upgrade in the manufacturing industry and acceleration of infrastructure construction in China, Industrial Technology achieved the strongest increase of 28 percent to 10 billion CNY. Consumer Goods and Building Technology continued its steady growth with a sales performance of 7.3 billion CNY and an increase of 18 percent.
In fiscal 2011, Bosch grew more strongly than expected, despite a weaker global economy. Its sales increased by 9.0 percent to 51.5 billion euros. The company strengthened the market position of all three business sectors. Automotive Technology, the largest business sector, generated sales of 30.4 billion euros last year, and thus grew by 8.2 percent year on year. The Industrial Technology business sector grew the strongest, by 21.0 percent to 8.0 billion euros. The Consumer Goods and Building Technology business sector generated sales of 13.1 billion euros in 2011, an increase of 4.4 percent. As a result of the good business developments, global headcount also increased in 2011, by 19,000 to 302,500 as of January 1, 2012. In 2012, sales of the leading supplier of business and services are expected to grow between 3 and 5 percent. Bosch Group investments will remain on a high level in 2012: Bosch will once again spend more than 4 billion euros for research and development.
Further strengthening of core businesses while seizing new opportunities
“As a global supplier of technology and services, Bosch must be able to respond to the unexpected volatility in various economic regions and local industries, and China is no exception.” said Dr. Chen Yudong, President of Bosch (China) Investment Ltd. “In line with Bosch’s global strategy, the long-term success of Bosch China depends on its capability to strike a balance between keeping its traditional core businesses strong, while doing everything it can to seize new opportunities.” he added.
In 2011, Bosch’s investment in China continued to grow and reached a total amount of 4.1 billion CNY. This investment further strengthened the core business of Bosch China. For example the Automotive Technology sector as well as Bosch Rexroth, Thermotechnology and Packaging Technology business units, all substantially enlarged their production capacity in order to fulfill the rising demands of the local market. In addition to that, Bosch continued to build up local R&D strength. Some 2,700 associates in 13 Bosch technical centers across all the three business sectors are dedicated to developing technology and solutions for local customers. For example, the Denoxtronic 6.5, an economical Selective Catalytic Reduction (SCR) exhaust gas after treatment system meeting China IV standard, was brought to market in 2011.
Invest to enhance product and service offerings
With the acquisition of the Unipoint Group Taiwan and SPX Service Solutions Business, Bosch expanded its product portfolio and made the company an even more comprehensive provider of solutions in automotive aftermarket field. The acquisition of Wuhan Tianyuan Boiler enabled Bosch Thermotechnology to add water tube boilers to its product portfolio, making Bosch one of the few suppliers with comprehensive HVAC (Heating, Ventilating and Air Conditioning) and hot water comfort solutions.
In 2012, some 30 percent of the company’s total investment will target the Asia Pacific region. Until 2015, Bosch will maintain an investment of 3 to 4 billion CNY in China every year. “China’s economy and development is expected to grow steadily and thus will keep its strategic market position within the Bosch Group”, mentioned Uwe Raschke further.
Growing local talents
In 2011, Bosch employed some 30,200 associates in China, and this figure will increase significantly to some 50,000 by 2015 with management positions nearly doubling to some 1,500. Local associates are planned to make up some 80 percent of senior management positions in the mid-term, marking an increase from the current 60 percent. In general around 90 percent of all manager level positions will be offered to Chinese employees by 2015. Bosch China was awarded as one of China’s Top Employer 2012 by the Corporate Research Foundation (CRF), an independent international human resource institute.
Contribute to China’s long-term development from a far-sighted perspective
In line with the Twelfth Five-Year Plan which was unveiled by the Chinese government in 2011 “Bosch will keep on the efforts of continuous localization and make further contributions to China's long-term development.” said Chen Yudong.
Considering the national goal of energy saving and emission reduction, all business sectors of Bosch China will further develop green technologies in respective areas. A cross-selling department, which marks a newly established function in China, will integrate products from Thermotechnology, Solar Energy Technology and Security Systems. In addition the department will also provide solutions for energy efficient buildings to help meet the rising needs from the fast urbanization of China. In the area of electric mobility, a local engineering force of some 120 associates is dedicated to developing technologies for new energy vehicles, an area China focuses on as a main method for the nation's future transportation. Bosch also contributed to the research and development on future technology of energy saving. The Bosch InterCampus Program, which was launched last year and aims to expand the company's support of universities worldwide, made a strong contribution in this area. In accordance with the program two joint laboratories with universities have been established, and the first patents have been already applied for in the area of electrical vehicle technology.
In line with the government agenda of accelerating mid-west region’s development to create the new engine for economic growth, Bosch has strengthened its ‘Go West’ strategy. Bosch in China is striking for a balanced business development approach: the company continuously enhances business presence in coastal areas, where the company's business in China was first set up, while speeding up its steps into the mid-west market with greater vitality. The commitment of going west is crossing all Bosch's business sectors. In November 2011, Bosch Packaging Technology announced an investment in Chengdu to build its second manufacturing site in China. In February this year, the new Bosch Chassis Control plant was announced to be located in Chengdu. The plant will become one of the most important manufacture bases for Bosch Automotive Technology in China. In 2011 alone, Bosch China established more than ten regional sales offices in mid and western cities, such as Changsha and Wuhan amongst others.
More
This fast and steady growth was attributed to the success in all three business sectors. The largest business sector of Bosch China, Automotive Technology, generated sales of 24.9 billion CNY with a growth rate of 7 percent, which is again above the average market growth. Thanks to the rising demands brought by an upgrade in the manufacturing industry and acceleration of infrastructure construction in China, Industrial Technology achieved the strongest increase of 28 percent to 10 billion CNY. Consumer Goods and Building Technology continued its steady growth with a sales performance of 7.3 billion CNY and an increase of 18 percent.
In fiscal 2011, Bosch grew more strongly than expected, despite a weaker global economy. Its sales increased by 9.0 percent to 51.5 billion euros. The company strengthened the market position of all three business sectors. Automotive Technology, the largest business sector, generated sales of 30.4 billion euros last year, and thus grew by 8.2 percent year on year. The Industrial Technology business sector grew the strongest, by 21.0 percent to 8.0 billion euros. The Consumer Goods and Building Technology business sector generated sales of 13.1 billion euros in 2011, an increase of 4.4 percent. As a result of the good business developments, global headcount also increased in 2011, by 19,000 to 302,500 as of January 1, 2012. In 2012, sales of the leading supplier of business and services are expected to grow between 3 and 5 percent. Bosch Group investments will remain on a high level in 2012: Bosch will once again spend more than 4 billion euros for research and development.
Further strengthening of core businesses while seizing new opportunities
“As a global supplier of technology and services, Bosch must be able to respond to the unexpected volatility in various economic regions and local industries, and China is no exception.” said Dr. Chen Yudong, President of Bosch (China) Investment Ltd. “In line with Bosch’s global strategy, the long-term success of Bosch China depends on its capability to strike a balance between keeping its traditional core businesses strong, while doing everything it can to seize new opportunities.” he added.
In 2011, Bosch’s investment in China continued to grow and reached a total amount of 4.1 billion CNY. This investment further strengthened the core business of Bosch China. For example the Automotive Technology sector as well as Bosch Rexroth, Thermotechnology and Packaging Technology business units, all substantially enlarged their production capacity in order to fulfill the rising demands of the local market. In addition to that, Bosch continued to build up local R&D strength. Some 2,700 associates in 13 Bosch technical centers across all the three business sectors are dedicated to developing technology and solutions for local customers. For example, the Denoxtronic 6.5, an economical Selective Catalytic Reduction (SCR) exhaust gas after treatment system meeting China IV standard, was brought to market in 2011.
Invest to enhance product and service offerings
With the acquisition of the Unipoint Group Taiwan and SPX Service Solutions Business, Bosch expanded its product portfolio and made the company an even more comprehensive provider of solutions in automotive aftermarket field. The acquisition of Wuhan Tianyuan Boiler enabled Bosch Thermotechnology to add water tube boilers to its product portfolio, making Bosch one of the few suppliers with comprehensive HVAC (Heating, Ventilating and Air Conditioning) and hot water comfort solutions.
In 2012, some 30 percent of the company’s total investment will target the Asia Pacific region. Until 2015, Bosch will maintain an investment of 3 to 4 billion CNY in China every year. “China’s economy and development is expected to grow steadily and thus will keep its strategic market position within the Bosch Group”, mentioned Uwe Raschke further.
Growing local talents
In 2011, Bosch employed some 30,200 associates in China, and this figure will increase significantly to some 50,000 by 2015 with management positions nearly doubling to some 1,500. Local associates are planned to make up some 80 percent of senior management positions in the mid-term, marking an increase from the current 60 percent. In general around 90 percent of all manager level positions will be offered to Chinese employees by 2015. Bosch China was awarded as one of China’s Top Employer 2012 by the Corporate Research Foundation (CRF), an independent international human resource institute.
Contribute to China’s long-term development from a far-sighted perspective
In line with the Twelfth Five-Year Plan which was unveiled by the Chinese government in 2011 “Bosch will keep on the efforts of continuous localization and make further contributions to China's long-term development.” said Chen Yudong.
Considering the national goal of energy saving and emission reduction, all business sectors of Bosch China will further develop green technologies in respective areas. A cross-selling department, which marks a newly established function in China, will integrate products from Thermotechnology, Solar Energy Technology and Security Systems. In addition the department will also provide solutions for energy efficient buildings to help meet the rising needs from the fast urbanization of China. In the area of electric mobility, a local engineering force of some 120 associates is dedicated to developing technologies for new energy vehicles, an area China focuses on as a main method for the nation's future transportation. Bosch also contributed to the research and development on future technology of energy saving. The Bosch InterCampus Program, which was launched last year and aims to expand the company's support of universities worldwide, made a strong contribution in this area. In accordance with the program two joint laboratories with universities have been established, and the first patents have been already applied for in the area of electrical vehicle technology.
In line with the government agenda of accelerating mid-west region’s development to create the new engine for economic growth, Bosch has strengthened its ‘Go West’ strategy. Bosch in China is striking for a balanced business development approach: the company continuously enhances business presence in coastal areas, where the company's business in China was first set up, while speeding up its steps into the mid-west market with greater vitality. The commitment of going west is crossing all Bosch's business sectors. In November 2011, Bosch Packaging Technology announced an investment in Chengdu to build its second manufacturing site in China. In February this year, the new Bosch Chassis Control plant was announced to be located in Chengdu. The plant will become one of the most important manufacture bases for Bosch Automotive Technology in China. In 2011 alone, Bosch China established more than ten regional sales offices in mid and western cities, such as Changsha and Wuhan amongst others.
| In China, the Bosch Group manufactures and markets automotive original equipment and aftermarket products, industrial drives and control technology, packaging technology, solar energy products, power tools, security and communication systems, thermotechnology, household appliances. Having established a regional presence in China since 1909, Bosch employs over 30,200 associates in 51 legal entities and facilities, with consolidated sales of 42.3 billion CNY in fiscal 2011. |
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- April 27, 2012
- Press releases
- Business/economy
The Bosch Group: further strengthening core businesses and seizing new opportunities
Uwe Raschke, Member of the Board of Management,
Robert Bosch GmbH,
- at the Bosch Press conference in China, Beijing, April 27, 2012
Ladies and Gentlemen,
If 2011 made anything clear, it is that we live in times of rapid change and high volatility. In the first part of the year, the world economy continued to grow strongly following the global recession of 2009. But political and economic developments in different parts of the world soon gave rise to new uncertainties. By the start of 2012, all global regions had been affected by a slow-down in economic growth.
Without doubt, the increasing pace of globalization means that a global provider of technology and services like Bosch must be able to respond to the unexpected. At the same time, the long-term success of the company will depend on its ability to strike a balance between keeping its traditional core businesses strong, while doing everything it can to seize future opportunities.
In 2012, the Bosch Group is pushing ahead with its long-term strategy, which aims to ensure this balance. We continue to expand our global presence, diversify our businesses, and cultivate our innovative strength. To do this, we focus our activities on further improving existing technologies to make them even safer, cleaner, and more economical. We are also working at full speed to develop new innovations in promising areas, such as the fields of e-mobility, renewable energy, and the internet of things and services.
The Bosch Group’s activities in Asia Pacific clearly reflect this strategy. Despite the current global slowdown, Asia's emerging economies will keep driving global economic growth, and the region's development is expected to continue steadily in the years to come. Asian markets are gaining even more significance for the Bosch Group as well, and we are expanding our regional presence accordingly.
Today, I will discuss our current activities across the region. But before I do this, I would like to give you a brief overview of the Bosch Group’s results for 2011.
Despite the cooling of the global economy, in 2011 the Bosch Group increased its sales by 9 percent, to 51.5 billion euros. Sales not only exceeded 50 billion euros for the first time ever, but also our expectations. On the back of this strong growth, we recruited an additional 19,000 associates worldwide in 2011. Over the course of the year, our total workforce increased by nearly 7 percent, to 302,500.
We also performed very well in Asia Pacific, where our sales rose by 8.9 percent to 12 billion euros. All three Bosch business sectors developed positively. Automotive Technology sales increased about 5 percent, to 8.2 billion euros. Industrial Technology recorded a strong 26 percent increase over the previous year, with sales amounting to some 2 billion euros. And the Consumer Goods and Building Technology business sector grew 12 percent year on year, with sales of 1.8 billion euros.
This positive regional development is also reflected in headcount. We hired an additional 8,000 associates in Asia Pacific last year. At the start of 2012, 71,200 people worked for the Bosch Group in the region. And headcount continues to grow. By the end of 2012, we expect to have some 35,000 associates working for Bosch in China, about 5,000 more than at the start of the year. The numbers are rising in India as well: at the beginning of 2012, there were some 24,000 associates on board. By year’s end, we expect our Indian workforce to exceed 26,000.
While these two countries continue to be the biggest Bosch markets in Asia Pacific, we are expanding our presence in other countries as well. For instance, we currently employ some 500 associates in Vietnam, and we expect the number to rise to 1,600 by 2015. In addition, we will open our first representative offices in Bangladesh and Laos by the end of 2012. In November 2011, we also opened a new office in Surabaya, Indonesia, to be closer to our customers in East Java.
In line with the global Bosch Group strategy, we continue to step up our regional manufacturing activities as well. To mention just three examples, in 2011 we opened a new production site for push belts in Vietnam. And in India, Bosch is currently building a new plant for electrical drives in Chennai, which is set to open this year. In Malaysia, our Solar Energy division is planning to start construction of its new manufacturing facility in the second half of 2012.
As China is the third biggest Bosch market worldwide and our largest market in Asia Pacific, we continue to strengthen our already deep roots in the country. Bosch is committed to supporting the Chinese government in furthering the economic development of the country's western regions.
Bosch divisions are setting up new manufacturing facilities in the Western regions of the country. For instance, Bosch Packaging Technology is planning a new production plant in Chengdu. Set to open in 2015, the new facility will manufacture packaging machinery for the pharmaceutical, food, and confectionary industries. Some 300 associates will work at the new plant, which represents an investment volume of 150 million Yuan.
The Bosch Chassis Systems Control division is also expanding its activities in China with the opening of its second manufacturing site in Chengdu. With an investment of some 800 million Yuan, the new facility will focus, among other things, on the production of ABS anti-lock braking systems as well as ESP anti-skidding technologies.
In addition to expanding our manufacturing presence, we are also taking steps to better serve our Chinese customers: since 2010, we have opened more than 40 new regional sales offices across the country.
The figures and our regional expansion activities clearly show the importance of Asia Pacific for Bosch. Since the year 2000, our sales and workforce in the region have almost tripled. In 2011, Asia Pacific accounted for 23 percent of global Bosch Group sales, up from 13 percent a decade ago. Increasing investment and strengthening our presence in Asia is thus both natural and necessary. In 2011, we invested some 800 million euros in the region, and we expect to spend more than 2.1 billion euros in Asia Pacific by the end of 2013.
Most of these funds will go into intensifying our local activities even further. By the end of 2012, more than 13,000 out of some 43,000 Bosch development engineers will be located in the region – that’s five times as many as just five years ago. Thanks to the growing strength of our local marketing and R&D presence, Bosch has gained a sound understanding of what our customers in Asia Pacific’s diverse markets expect. As a result, we have come up with a range of cost-effective products that are tailored to local needs, in line with our strategic imperative “Invented for life”.
Products such as the Power Tools division’s T-series are a strong example of this. Launched in 2011, the tools were developed with the needs of Chinese tradesmen in mind. Their immediate market success clearly shows that we are on the right track: last year, the Power Tools division’s sales in China grew twice as fast as the market. And we have begun to develop customized products for other Asian markets, too.
In automotive technology as well, our engineers in China have developed products that are tailored to the local market. For instance, our UAES joint venture will be launching a first small series of electric drive systems for plug-in hybrid vehicles in 2013. We see great potential for the plug-in hybrid, as it allows long distances to be travelled economically using diesel or gasoline, and electric driving in the city.
The work of our engineers in Asia Pacific also has a strong impact beyond the region. To name just one example, Bosch engineers at our R&D center for active automotive safety systems in Yokohama, Japan developed the world’s smallest and lightest motorcycle ABS antilock braking system. Launched in 2010, the system is now featured in the motorcycles of several OEMs, and has been very successful in all global markets. It has also won several safety prizes.
Without doubt, our Asian engineers are an integral part of the global network of Bosch specialists who benefit from each others’ know-how and market intelligence. Together with their colleagues around the world, they form one of the pillars of our innovative strength.
This strength will prove to be an asset as software-intensive technologies continue to gain significance. In the future, the Bosch Group aims to further strengthen its position as a global supplier of software and services. In the long term, we want to provide not only innovative products, but also innovative services which require the networking of a range of devices. From driver information systems with open source software, to heating systems with an integrated IP interface, to web-based technologies for video surveillance systems, Bosch is forging new ground.
In these areas, too, Bosch associates in Asia Pacific play a very important role. The company recently opened a branch of its subsidiary Robert Bosch Engineering and Business Solutions in Vietnam. The new site will complement the company’s activities at its home base in India. Representing an investment of 3.4 million euros, the new location in Ho Chi Minh City is the first Bosch software and engineering facility in Southeast Asia. It currently employs 160 engineers, and another 400 are set to join them by 2015. This is in addition to the 10,000 associates already working for Robert Bosch Engineering in India. The company provides engineering, IT, and business services in all of the Bosch Group’s fields of business.
As its workforce and regional footprint grow, the Bosch subsidiary is consistently expanding its areas of expertise. Just last year, more than 800 new engineers were hired in India to further strengthen our global worldwide software engineering activities for electronic control units. Their work will focus on ECUs for vehicles with conventional drivetrain technologies, as well as on hybrid and electric vehicles.
In everything that we do, coming up with solutions that help achieve more energy efficiency and tap the enormous potential of renewable resources will remain a central aim. In 2011, roughly half our research and development expenditure of 4.2 billion euros was allocated to products and services designed to conserve resources and protect the environment. These products and services now account for around 40 percent of the Bosch Group's global sales.
Indeed, all three of our business sectors already offer a broad portfolio of eco-friendly technologies and services. These range from e-mobility solutions and energy-saving household appliances, to advisory services which enable our customers to reduce energy consumption in industrial processes. Not only can this extensive portfolio help our Asian customers meet ever stricter environmental standards, it can also contribute to reducing carbon footprint and protecting the climate.
To further improve our innovative strength and lay the foundation we need to meet the challenges ahead, we must also succeed in recruiting the best talent. This is very important in Asia Pacific, where the environment is especially competitive in this regard. While attracting top talent is certainly decisive, keeping associates motivated and committed requires consistent investment in career development programs and opportunities for lifelong learning. In 2011, Bosch invested a total of over 200 million euros in training for its associates worldwide. The number of Bosch associates in Asia Pacific who participated in internal seminars increased by 54 percent. In total, Bosch seminars in the region counted some 200,000 participants.
The Bosch Group’s commitment to education extends far beyond the company’s walls. For instance, the Bosch InterCampus program reflects the company’s commitment to social responsibility and establishing strong local roots. Launched in the spring of 2011, the initiative aims to drive forward academic research in the areas of environment, energy, and mobility. Over a period of ten years, Bosch will contribute some 50 million euros to support research activities at universities in China, Germany, India, and the United States. Our ultimate goal is to make lasting improvements to the research conditions of students and scientists. This will in turn help accelerate technological progress.
While continuing to enhance existing technologies and developing new ones will be decisive for the Bosch Group’s success in the future, it is only part of the challenge. The other is doing all that we can to ensure that our core businesses remain competitive in a fast-changing world. This is why we are committed to pursuing a sound portfolio management strategy.
Our approach is threefold: first, we restructure existing businesses where necessary, as we recently did with the realignment of our Automotive Technology business sector’s worldwide brake operations. Second, we acquire companies which further strengthen our business. Our recent acquisition of Unipoint in Taiwan is a strong example of this. The manufacturer of starters, alternators, and wiper blades complements our global Automotive Aftermarket business well. And finally, we establish and invest in companies and businesses that show promise for the future. There are many examples of this, from the expansion of Robert Bosch Engineering and Business Solutions, to the successful launch of our e-bike business. In 2011, Bosch established partnerships with about 40 bicycle manufacturers.
In closing, the activities I have discussed with you today clearly show the focus of Bosch’s efforts: maintaining and increasing our current strength and competitiveness, while at the same time laying the foundation for our future success. Given the ever-growing significance of Asia Pacific for the Bosch Group, this will mean keeping up our strategy of further expansion, diversification, and investment in the region. And since China will continue to make a major contribution to the success of our company in Asia Pacific, our commitment to intensifying our activities in the country remains strong.
On that note, allow me to hand over to Chen Yudong, who will talk about Bosch developments in China in greater detail.
Thank you for your attention.
More
If 2011 made anything clear, it is that we live in times of rapid change and high volatility. In the first part of the year, the world economy continued to grow strongly following the global recession of 2009. But political and economic developments in different parts of the world soon gave rise to new uncertainties. By the start of 2012, all global regions had been affected by a slow-down in economic growth.
Without doubt, the increasing pace of globalization means that a global provider of technology and services like Bosch must be able to respond to the unexpected. At the same time, the long-term success of the company will depend on its ability to strike a balance between keeping its traditional core businesses strong, while doing everything it can to seize future opportunities.
In 2012, the Bosch Group is pushing ahead with its long-term strategy, which aims to ensure this balance. We continue to expand our global presence, diversify our businesses, and cultivate our innovative strength. To do this, we focus our activities on further improving existing technologies to make them even safer, cleaner, and more economical. We are also working at full speed to develop new innovations in promising areas, such as the fields of e-mobility, renewable energy, and the internet of things and services.
The Bosch Group’s activities in Asia Pacific clearly reflect this strategy. Despite the current global slowdown, Asia's emerging economies will keep driving global economic growth, and the region's development is expected to continue steadily in the years to come. Asian markets are gaining even more significance for the Bosch Group as well, and we are expanding our regional presence accordingly.
Today, I will discuss our current activities across the region. But before I do this, I would like to give you a brief overview of the Bosch Group’s results for 2011.
Despite the cooling of the global economy, in 2011 the Bosch Group increased its sales by 9 percent, to 51.5 billion euros. Sales not only exceeded 50 billion euros for the first time ever, but also our expectations. On the back of this strong growth, we recruited an additional 19,000 associates worldwide in 2011. Over the course of the year, our total workforce increased by nearly 7 percent, to 302,500.
We also performed very well in Asia Pacific, where our sales rose by 8.9 percent to 12 billion euros. All three Bosch business sectors developed positively. Automotive Technology sales increased about 5 percent, to 8.2 billion euros. Industrial Technology recorded a strong 26 percent increase over the previous year, with sales amounting to some 2 billion euros. And the Consumer Goods and Building Technology business sector grew 12 percent year on year, with sales of 1.8 billion euros.
This positive regional development is also reflected in headcount. We hired an additional 8,000 associates in Asia Pacific last year. At the start of 2012, 71,200 people worked for the Bosch Group in the region. And headcount continues to grow. By the end of 2012, we expect to have some 35,000 associates working for Bosch in China, about 5,000 more than at the start of the year. The numbers are rising in India as well: at the beginning of 2012, there were some 24,000 associates on board. By year’s end, we expect our Indian workforce to exceed 26,000.
While these two countries continue to be the biggest Bosch markets in Asia Pacific, we are expanding our presence in other countries as well. For instance, we currently employ some 500 associates in Vietnam, and we expect the number to rise to 1,600 by 2015. In addition, we will open our first representative offices in Bangladesh and Laos by the end of 2012. In November 2011, we also opened a new office in Surabaya, Indonesia, to be closer to our customers in East Java.
In line with the global Bosch Group strategy, we continue to step up our regional manufacturing activities as well. To mention just three examples, in 2011 we opened a new production site for push belts in Vietnam. And in India, Bosch is currently building a new plant for electrical drives in Chennai, which is set to open this year. In Malaysia, our Solar Energy division is planning to start construction of its new manufacturing facility in the second half of 2012.
As China is the third biggest Bosch market worldwide and our largest market in Asia Pacific, we continue to strengthen our already deep roots in the country. Bosch is committed to supporting the Chinese government in furthering the economic development of the country's western regions.
Bosch divisions are setting up new manufacturing facilities in the Western regions of the country. For instance, Bosch Packaging Technology is planning a new production plant in Chengdu. Set to open in 2015, the new facility will manufacture packaging machinery for the pharmaceutical, food, and confectionary industries. Some 300 associates will work at the new plant, which represents an investment volume of 150 million Yuan.
The Bosch Chassis Systems Control division is also expanding its activities in China with the opening of its second manufacturing site in Chengdu. With an investment of some 800 million Yuan, the new facility will focus, among other things, on the production of ABS anti-lock braking systems as well as ESP anti-skidding technologies.
In addition to expanding our manufacturing presence, we are also taking steps to better serve our Chinese customers: since 2010, we have opened more than 40 new regional sales offices across the country.
The figures and our regional expansion activities clearly show the importance of Asia Pacific for Bosch. Since the year 2000, our sales and workforce in the region have almost tripled. In 2011, Asia Pacific accounted for 23 percent of global Bosch Group sales, up from 13 percent a decade ago. Increasing investment and strengthening our presence in Asia is thus both natural and necessary. In 2011, we invested some 800 million euros in the region, and we expect to spend more than 2.1 billion euros in Asia Pacific by the end of 2013.
Most of these funds will go into intensifying our local activities even further. By the end of 2012, more than 13,000 out of some 43,000 Bosch development engineers will be located in the region – that’s five times as many as just five years ago. Thanks to the growing strength of our local marketing and R&D presence, Bosch has gained a sound understanding of what our customers in Asia Pacific’s diverse markets expect. As a result, we have come up with a range of cost-effective products that are tailored to local needs, in line with our strategic imperative “Invented for life”.
Products such as the Power Tools division’s T-series are a strong example of this. Launched in 2011, the tools were developed with the needs of Chinese tradesmen in mind. Their immediate market success clearly shows that we are on the right track: last year, the Power Tools division’s sales in China grew twice as fast as the market. And we have begun to develop customized products for other Asian markets, too.
In automotive technology as well, our engineers in China have developed products that are tailored to the local market. For instance, our UAES joint venture will be launching a first small series of electric drive systems for plug-in hybrid vehicles in 2013. We see great potential for the plug-in hybrid, as it allows long distances to be travelled economically using diesel or gasoline, and electric driving in the city.
The work of our engineers in Asia Pacific also has a strong impact beyond the region. To name just one example, Bosch engineers at our R&D center for active automotive safety systems in Yokohama, Japan developed the world’s smallest and lightest motorcycle ABS antilock braking system. Launched in 2010, the system is now featured in the motorcycles of several OEMs, and has been very successful in all global markets. It has also won several safety prizes.
Without doubt, our Asian engineers are an integral part of the global network of Bosch specialists who benefit from each others’ know-how and market intelligence. Together with their colleagues around the world, they form one of the pillars of our innovative strength.
This strength will prove to be an asset as software-intensive technologies continue to gain significance. In the future, the Bosch Group aims to further strengthen its position as a global supplier of software and services. In the long term, we want to provide not only innovative products, but also innovative services which require the networking of a range of devices. From driver information systems with open source software, to heating systems with an integrated IP interface, to web-based technologies for video surveillance systems, Bosch is forging new ground.
In these areas, too, Bosch associates in Asia Pacific play a very important role. The company recently opened a branch of its subsidiary Robert Bosch Engineering and Business Solutions in Vietnam. The new site will complement the company’s activities at its home base in India. Representing an investment of 3.4 million euros, the new location in Ho Chi Minh City is the first Bosch software and engineering facility in Southeast Asia. It currently employs 160 engineers, and another 400 are set to join them by 2015. This is in addition to the 10,000 associates already working for Robert Bosch Engineering in India. The company provides engineering, IT, and business services in all of the Bosch Group’s fields of business.
As its workforce and regional footprint grow, the Bosch subsidiary is consistently expanding its areas of expertise. Just last year, more than 800 new engineers were hired in India to further strengthen our global worldwide software engineering activities for electronic control units. Their work will focus on ECUs for vehicles with conventional drivetrain technologies, as well as on hybrid and electric vehicles.
In everything that we do, coming up with solutions that help achieve more energy efficiency and tap the enormous potential of renewable resources will remain a central aim. In 2011, roughly half our research and development expenditure of 4.2 billion euros was allocated to products and services designed to conserve resources and protect the environment. These products and services now account for around 40 percent of the Bosch Group's global sales.
Indeed, all three of our business sectors already offer a broad portfolio of eco-friendly technologies and services. These range from e-mobility solutions and energy-saving household appliances, to advisory services which enable our customers to reduce energy consumption in industrial processes. Not only can this extensive portfolio help our Asian customers meet ever stricter environmental standards, it can also contribute to reducing carbon footprint and protecting the climate.
To further improve our innovative strength and lay the foundation we need to meet the challenges ahead, we must also succeed in recruiting the best talent. This is very important in Asia Pacific, where the environment is especially competitive in this regard. While attracting top talent is certainly decisive, keeping associates motivated and committed requires consistent investment in career development programs and opportunities for lifelong learning. In 2011, Bosch invested a total of over 200 million euros in training for its associates worldwide. The number of Bosch associates in Asia Pacific who participated in internal seminars increased by 54 percent. In total, Bosch seminars in the region counted some 200,000 participants.
The Bosch Group’s commitment to education extends far beyond the company’s walls. For instance, the Bosch InterCampus program reflects the company’s commitment to social responsibility and establishing strong local roots. Launched in the spring of 2011, the initiative aims to drive forward academic research in the areas of environment, energy, and mobility. Over a period of ten years, Bosch will contribute some 50 million euros to support research activities at universities in China, Germany, India, and the United States. Our ultimate goal is to make lasting improvements to the research conditions of students and scientists. This will in turn help accelerate technological progress.
While continuing to enhance existing technologies and developing new ones will be decisive for the Bosch Group’s success in the future, it is only part of the challenge. The other is doing all that we can to ensure that our core businesses remain competitive in a fast-changing world. This is why we are committed to pursuing a sound portfolio management strategy.
Our approach is threefold: first, we restructure existing businesses where necessary, as we recently did with the realignment of our Automotive Technology business sector’s worldwide brake operations. Second, we acquire companies which further strengthen our business. Our recent acquisition of Unipoint in Taiwan is a strong example of this. The manufacturer of starters, alternators, and wiper blades complements our global Automotive Aftermarket business well. And finally, we establish and invest in companies and businesses that show promise for the future. There are many examples of this, from the expansion of Robert Bosch Engineering and Business Solutions, to the successful launch of our e-bike business. In 2011, Bosch established partnerships with about 40 bicycle manufacturers.
In closing, the activities I have discussed with you today clearly show the focus of Bosch’s efforts: maintaining and increasing our current strength and competitiveness, while at the same time laying the foundation for our future success. Given the ever-growing significance of Asia Pacific for the Bosch Group, this will mean keeping up our strategy of further expansion, diversification, and investment in the region. And since China will continue to make a major contribution to the success of our company in Asia Pacific, our commitment to intensifying our activities in the country remains strong.
On that note, allow me to hand over to Chen Yudong, who will talk about Bosch developments in China in greater detail.
Thank you for your attention.
| In China, the Bosch Group manufactures and markets automotive original equipment and aftermarket products, industrial drives and control technology, packaging technology, solar energy products, power tools, security and communication systems, thermotechnology, household appliances. Having established a regional presence in China since 1909, Bosch employs over 30,200 associates in 51 legal entities and facilities, with consolidated sales of 42.3 billion CNY in fiscal 2011. |
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