German industrial conglomerate Siemens AG said Wednesday it bought a majority stake in two small Chinese metal companies, but did not release financial details. Munich-based Siemens said its energy division acquired the majority holding in Yangtze Delta Manufacturing, a metalworking company, and aluminum foundry GIS Steel & Aluminum Products, both of which are headquartered in Hangzhou. Siemens said the two companies had a combined revenue of euro65 million ($93 million) in 2008.
With the acquisitions, Siemens expands its global production network for high-voltage circuit breakers in China and its foundry capabilities from machining through final product assembly. China is currently the world's largest market for power transmission equipment.
"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," Udo Niehage, Siemens' chief power transmission official said in the company's statement. Shares of Siemens were unchanged at euro61.70 in Frankfurt morning trading.