Bosch China continues steady growth

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.