Siemens Unit Plans US$56mn Investment in 2006

German equipment supplier Siemens plans to inject 120mn reais (US$55.6mn) into its operations in Brazil this year, up 10% on last year's figure, Siemens Brasil VP Aluizio Bretas Byrro told BNamericas.

The company will focus its investment on new products and solutions, as well as technology centers and research and development, he said.

Siemens sold its cell phone division to Taiwan's BenQ last year, but in the telecoms arena the group has high expectations for revenue growth in areas such as WiMax, IP, NGN and value-added services, Byrro said. The telecoms division in Brazil is expected to see 10-20% revenue growth in 2006 compared to 2005, he added.

There are a number of contracts in the pipeline, and the telecoms unit expects to close a significant US$100mn contract for wireless infrastructure in the next 2-3 months, said Byrro, without naming the company.

Siemens Brasil views broadband access and value-added services, or outsourcing, as vital growth areas. "Outsourcing is one of our fastest growing areas and increased over 20% in 2005," he said.

The company has high hopes for WiMax and is working with one of Brazil's leading telecoms operators. Byrro declined to name the company, but said it is now in a trial phase and expects to roll out WiMax in 2007.

Following the sale of handset operations to BenQ, Siemens is planning to relocate handset production from Manaus to the southern city of Curitiba, where the company already has manufacturing operations.

BNamericas.com"

Posted to the site on 9th March 2006