Siemens Medical Solutions, one of the world's leading medical solutions providers, said it would increase its presence in China and aim to make the country its second-largest market after the United States.

"China is one of the major markets in which we're focusing major investment for our future development on the world stage," said Steven Feinberg, president of Medical Solutions Group, Siemens Ltd China, when launching the firm's new CT product - SOMATOM Spirit - in Beijing on Saturday.

The new product was developed and manufactured by Siemens Shanghai Medical Equipment Ltd (SSME), Siemens' CT and X-ray research and development and manufacturing base in China, and will be marketed to global customers, said the company.

The company currently produces 15 varieties of medical equipment in China, compared with two just three years ago, according to the China medical group's president.

"We attach a strategic importance to research and development in our long-term investment in China," said Feinberg, saying Siemens is spending a "growing proportion" of its total budget on the R&D division.

According to company sources, Siemens' medical arm injected 9 per cent of its total sales revenue into research and development during the 2002-2003 fiscal year, hitting 674 million euros (US$903 million).

The medical equipment giant aims to penetrate every province in China, by extending its number of local offices to 33 by the end of September, from the current 25 nationwide, Feinberg told China Daily.

These offices provide customers with sales, enquiry and product maintenance services, according to company sources.

Currently Siemens Medical Solutions has three R&D bases in the country and four manufacturing bases, with a new research and manufacturing base to be opened in South China's Shenzhen next week, said Feinberg.

Looking to the future of China's medical equipment market, Feinberg said the much-coveted market is now expanding by 15 per cent each year, and he foresees soaring demand for new-tech products and professional medical solutions.

The China medical group's president voiced confidence in the group's market future, as "Siemens Medical Solutions is growing by two to three times the market's 15 per cent growth pace."

"We expect China to become our second largest market after the United States in 2006," said Feinberg.

But he declined to comment on his firm's potential competitors in China's medical equipment market.

Siemens Medical Solutions witnessed a global sales revenue of 7.1 billion euros (US$9.5 billion) for the 2004 fiscal year, and made a profit of 1.05 billion euros (US$1.4 billion), said the company.

Of global sales, nearly half came from the United States - Siemens Medical Solutions' largest market, roughly 20 per cent from Europe and 10 per cent from China, Feinberg said.

Siemens AG, with its business interests spanning information and communications, automation and control, power, transportation, medical, lighting and household appliances, plans to pump an additional 10 billion yuan (US$1.2 billion) into its expansion in China over the next three to five years, said Heinrich von Pierer, president of Siemens AG, last May during a visit to China.

Source: China Daily