Siemens Water Technologies (www.siemens.com/water) acquired CNC Water Technology Inc., Beijing, a China-based water systems integrator with 120 employees, including 70 engineers. CNC is exclusively focused on the water sector and primarily on industrial filtration applications.
According to Siemens, the acquisition will allow it to better market its water treatment products and systems for large water treatment and seawater desalination projects in China.
Under terms of the deal, Siemens acquired 70 percent ownership of CNC, Beijing, from its parent company CNC Water Technology Limited., Hong Kong. Siemens will have an option to acquire the remaining 30 percent of the company’s shares after three years.
With a growth rate of about 15 percent per year, the Chinese water market is projected to be the second largest market after the US. Growth is also expected to be driven upward by infrastructural needs and upcoming mega-events, such as the 2008 Beijing Olympics and Expo 2010 in Shanghai. Siemens intends to use China as one of its manufacturing platforms in the region. The strategy includes transfer of technology and manufacturing into China, as well as further acquisitions and partnership agreements with system integrators, engineering and service companies. Through customer relationships and interactions with the local design institutes, Siemens expects to gain the required technical acceptance in the Chinese market.