• 2008 sales in China expected to reach some 2.3 billion euros (some 25 billion CNY): Growth of 30 percent for the fourth consecutive year
• 200-million-euro expansion of diesel technology in Wuxi
• New 100-million-euro facility for wind power technology in Beijing
• Continued localization of development and manufacturing sites

Beijing / Stuttgart - The Bosch-Group will continue its growth path in China, with 2008 sales in the country expected to reach some 2.3 billion euros (25 billion CNY), an increase of a strong 30 percent from the previous year. This fourth consecutive year of high growth was announced by Franz Fehrenbach, chairman of the board of management of the Bosch-Group, to nationwide journalists at a press meeting in Beijing.

“China will remain a major driver of our growth in Asia,” said Fehrenbach. “Our resource-saving and energy-efficient innovations are in strong demand as the country targets sustainable growth.”

Bosch has established a solid basis to further increase its presence in China. By the beginning of 2009, the number of Bosch associates in China will amount to approximately 23,000, greater than in any other country outside Germany. The research and development activities of Bosch in China, which relate to all its business sectors, are driven forward by 1,350 associates. The company already invested some 1 billion euros in China in the years up to 2007; another 850 million euro will be added between 2008 and 2010. “We see ourselves as a true partner for China’s dynamic economic development. More than ever before, Bosch is also a Chinese company,” Fehrenbach commented. Bosch has first entered the Chinese market in 1909 and will celebrate its centennial next year.

Strong partnership for cleaner and safer driving in China

One focal point of the Bosch investment in China is on energy-efficient, clean, and green drive solutions such as common-rail diesel systems, in which the company will invest some 200 million euros over the next three years. Bosch pioneered this high-pressure injection technology, and supplies it to the Chinese market through its long-term ‘win-win’ partnership with Weifu in Wuxi.

As China introduces stricter emission legislation to protect the environment, the Bosch activities at Wuxi will be further expanded. The China III emission limits for diesel vehicles can only be met with electronically controlled injection systems, especially if fuel consumption is to be kept low. To support this development, the production volume at the Wuxi manufacturing site is expected to increase from 100,000 systems last year to 1.4 million in 2010. By the end of 2009, the number of associates at Wuxi will have doubled to 3,900 as compared to 2008; some 100 new engineers will have joined the technical center. New application projects are already aiming for compliance with the China IV emission limits, which will be introduced country-wide from 2010 onwards.

“By continuing to localize our development and manufacturing facilities, we will systematically be able to reduce our costs,” said Fehrenbach. “This helps to lower emissions and contributes to the further strengthening of the Chinese automotive industry.”

In addition to common-rail technology, Bosch also develops gasoline direct injection at its joint venture UAES. Automatic transmission control units, start/stop systems, as well as engine management systems for the two-wheeler segment will also help to reduce fuel consumption and emissions.

To make driving in China not only cleaner but also safer, Bosch has expanded production for the ABS antilock braking system and the ESP® electronic stability program at its Suzhou site. ESP® can help to reduce road deaths: The goal of the Chinese government is 20,000 fewer fatal accidents by 2010 as compared to 2005. In order to apply ESP® and ABS to vehicles under extreme conditions, Bosch has built a test center in Yakeshi, Inner Mongolia. The Yakeshi facilities have already been used for 22 projects with 15 car companies.

Investment in renewable resources – beyond automotive technology

As another focal point for Bosch investment in China, Bosch Rexroth has recently launched a new manufacturing facility in Beijing for large gear units used in wind turbines, the first such facility outside Germany. With an investment of some 100 million euros, Bosch is also supporting China to achieve its targets when it comes to utilizing renewable energies such as wind power. In terms of GDP, China is second only to Germany in its investments in exploring renewable resources. As a leading supplier to the industry, Bosch Rexroth has already localized close the 50 percent of its production in China, and recently equipped 100 wind turbines in Shandong and Inner Mongolia with hydraulic units.

All in all, Bosch Group sales in the renewable resources sector amount to 1 billion euros, and the signs are that this figure will increase further. Over 40 percent of the company’s annual R&D expenditure goes toward eco- and resource-friendly products. Bosch is also engaged in geo- and solar-thermal technology, and manufactures solar cells.

Increasing share of Asia Pacific in worldwide Bosch business

In 2008, Bosch Group global sales will amount to about 47 billion euros. This moderate growth is due to negative currency effects and the economic slowdown. Even the dynamic business development in the Asia Pacific region cannot fully make up for this. As of the beginning of 2009, Bosch will employ some 290,000 associates worldwide, 60,000 of them in Asia Pacific. Sales in this region in 2008 are expected to grow by some 14 percent in local currencies. Asia Pacific will remain the growth driver of Bosch business worldwide. It currently accounts for 16 percent of total Bosch business, and this share is expected to increase to 25 percent by 2015.

About Bosch in China

Bosch founded its first trading office in China as early as 1909. In 1926, the first car service workshop opened in Shanghai. Today, all Bosch business sectors are present in China: Automotive Technology, Industrial Technology and Consumer Goods and Building Technology. The company operates 37 legal entities in China and has a holding company in Shanghai. Consolidated sales in China reached 1.8 billion euros in 2007. By the end of 2007, Bosch had invested around 1 billion euros in China, and between 2008 and 2010 it will invest a further 850 million euros. Some 17,000 Bosch associates are committed to bringing to Chinese customers the latest technology as well as the most reliable services to help improve their quality of life.

About the Bosch Group

The Bosch Group is a leading global supplier of technology and services. In the areas of automotive and industrial technology, consumer goods, and building technology, some 271,000 associates generated sales of 46.3 billion euros in fiscal 2007. The Bosch Group comprises Robert Bosch GmbH and its more than 300 subsidiaries and regional companies in roughly 50 countries. This worldwide development, manufacturing, and sales network is the foundation for further growth. Each year, Bosch spends more than 3 billion euros for research and development, and applies for over 3,000 patents worldwide. The company was set up in Stuttgart in 1886 by Robert Bosch (1861-1942) as “Workshop for Precision Mechanics and Electrical Engineering.”

The special ownership structure of Robert Bosch GmbH guarantees the entrepreneurial freedom of the Bosch Group, making it possible for the company to plan over the long term and to undertake significant up-front investments in the safeguarding of its future. Ninety-two percent of the share capital of Robert Bosch GmbH is held by Robert Bosch Stiftung GmbH, a charitable foundation. The majority of voting rights are held by Robert Bosch Industrietreuhand KG, an industrial trust. The entrepreneurial ownership functions are carried out by the trust. The remaining shares are held by the Bosch family and by Robert Bosch GmbH.

For more information on Bosch Group, please visit http://www.bosch.com.cn

For further details please contact:

Ms. Helen He Bosch(China) Investment Ltd. Tel: +86-21-2898 1111 Email: helen.he@cn.bosch.com

News sourc: Bosch China
Publish date: October 2008