Siemens invest in Brazil to establish base in emerging market
Date added: 1st June, 2010 at 10:46
(view all articles from June, 2010)
Categories: Economy
German engineering giant Siemens are to invest in Brazil as part of a €3 billion (£2.55 billion) venture to establish itself in the Bric countries - a group of emerging economies that also includes Russia, India and China.
According to the Financial Times, the company is to plough money into the nations in order to produce "base level" technology that can be quickly launched into the domestic market.
The new products will be lower cost, more basic models that will better appeal to the consumer base in developing countries than the high-tech ranges that the firm trades in Europe.
Benefiting from low labour costs and the mitigation of tax duties and shipping expenses, Siemens is moving quickly to obtain a foothold in the country before local competitors gain more strength, the news provider said.
US engineering firm GE is to invest a similar amount in the Bric countries over the next four years, introducing 100 new healthcare products, the information source reported.
Total sectors profit for the Brazilian subsidiary of Siemens over the first three months of the year came to €2.138 billion, with the majority of departments posting a rise in order volumes.
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