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Bosch continues expansion in midwest China

By Rao Bo | Xinhua | Updated: 2013-06-05 17:14

FRANKFURT, June 5 (Xinhua) -- The German-based Bosch Group would continue expanding its business in midwest China due to the region's huge economic growth potential, a senior company official told Xinhua recently.

Uwe Raschke, a member of the Board of Management responsible for Bosch's business in the Asia Pacific, said Bosch was following the Chinese government's strategy of going west and had invested a total of 1.1 billion yuan (about $179 million) in the region in 2011 and 2012.

He said Bosch had opened plants in midwestern cities such as Chengdu, Xi'an, Wuhan, Changsha and Chongqing, and about a quarter of Bosch's employees worked in the region.

"The strategy is quite clear: we go where our customers are," he said, adding there was a growing demand for the company's products in the region.

As one of the world's most recognized technology and services companies, Bosch entered the Chinese market as early as 1909. "China is very important in Bosch's worldwide long-term strategy," Raschke said.

In the past 10 years, Bosch has achieved a 25-percent compound annual growth rate in China, and recorded sales revenue of 5.1 billion euros ($6.6 billion) last year.

China has now become one of the most important business regions for the company with some 34,000 employees. "In the long term, China will become even more important," Raschke said.

Raschke, who has just returned after more than four years in China, expressed confidence in the development of the midwestern regions.

Taking Chengdu as an example, he said he was amazed by the professionalism, eagerness of local authorities and the quality of infrastructure in the city.

Commenting on the move by some foreign companies to countries with lower production costs, Raschke stressed his confidence in China's ongoing importance.

Currently, all of Bosch's four business sectors, including automotive technology, industrial technology, consumer goods, energy and building technology, are operating in China.

Raschke also shared his suggestions on how a company can become a worldwide leader. "Companies should focus on patience, innovative spirit and a good brand," he said, adding it had taken Bosch 127 years to become a world class manufacturer of technology, services and goods.

As for the efforts of Chinese companies to upgrade their products through innovation, Raschke said a growing number of patents came from China and some Chinese companies, such as Huawei and ZTE, had played a leading role in their industries.

As China transforms its economy from an export-led one to a more domestic demand-driven one, Raschke said domestic consumption should be increased in the country, with a healthier insurance and pension system in order to boost consumers' confidence to consume.

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