• 2009 sales in China expected to grow by 15 percent to some 2.6 billion euros (24 billion CNY)
• Division for hybrid and electric drives at UAES
• 500 generator gearboxes for wind turbines supplied in 2009
• Annual production record of one million locally produced ABS and ESP systems

Beijing / Stuttgart – As the Bosch Group commemorates its centennial anniversary in China, the company’s long-term presence in the country is underpinned by continued growth. In 2009, Bosch sales in China are expected to reach some 2.6 billion euros (24 billion CNY), an increase of 15 percent over the previous year. “China will remain a major driver of our growth in Asia,” said Franz Fehrenbach, chairman of the Bosch board of management at a press conference in Beijing. “As we celebrate 100 years of Bosch in China, we are encouraged by the market potential for resource-saving and energy-efficient innovations and will further strengthen our presence in the country.”

China was the foundation stone for the Bosch business in Asia Pacific and has been a major growth driver for the past two decades. Since opening its first sales office on October 19, 1909, in Shanghai, Bosch has continuously strengthened its presence across China. Today, the company has a workforce of over 20,000 associates here, the largest outside Germany.

Confident about the future despite current challenges

Despite continued growth in China, the downturn in global markets has left its mark on the overall business results of the Bosch Group, with 2009 sales expected to fall by about 15 percent, to some 38 billion euros. “Gradually, we will move away from the disappointing results of the recent past. On the whole, however, it could take us until 2012 to return to pre-recession levels,” said Fehrenbach. The ability to “emerge stronger from difficult periods,” he added, is a result of the company’s long-term orientation and its continuing focus on developing beneficial technologies “Invented for life”. More than a corporate slogan, this represents the strategic innovation program for all Bosch business sectors with products that make life safer, easier, and more sustainable. According to Fehrenbach, a major success factor in pursuing this goal is “being firmly rooted in the countries in which we do business. Without our local customers, associates, and partners, Bosch in China would not be what it is today - an established Chinese company.”

Bosch in China: Making life safer, easier, and more sustainable As the Asian markets and China play a leading role in the recovery of the global markets, innovations that improve safety, increase comfort, conserve resources, and protect the environment will be in particularly strong demand. “Our technologies enable us to support China in meeting the challenges of striving for sustainable economic development and a harmonious society,” Fehrenbach said.

One challenge is ensuring that personal mobility is safe. According to Bosch’s 2009 Active Safety Survey, safety is of vital importance for Chinese car buyers. Bosch has already responded to this demand and produces both the ABS antilock braking system and the ESP® electronic stability program locally. One million systems were manufactured in Suzhou by the third quarter of 2009, a new record for a single year production. The contribution of ESP® to road safety has been acknowledged by many governments, who have introduced legislation to make it mandatory in new vehicles in the coming years. In China, the ESP® installation rate is set to triple, from seven percent today to 22 percent by 2014, “a result of the joint efforts of the Chinese government, OEMs, and suppliers,” said Fehrenbach.

Developing the electric car of the future is another top priority. For this reason, Bosch has intensified its activities for alternative drive systems to support China’s objective of increasing the number of “New Energy Vehicles” to 500,000 by 2011. By the end of 2009, some 35 engineers will be working on projects related to powertrain electrification in the division for hybrid and electric drives at UAES (United Automotive Electronic Systems), the company’s joint venture with SAIC (Shanghai Automotive Industry Corporation). Their number is set to increase to about 100 in the near future.

During the transition to the electric car, Bosch continues its efforts to further improve conventional drive technologies. “We believe that the internal combustion engine will remain the technology of choice in global markets for the next twenty years,” said Fehrenbach. This is not only due to the affordability and availability of conventional engines. By further improving these engines, fuel consumption can be reduced by an additional 30 percent. This can be achieved with Bosch technologies such as improved fuel injection and start-stop systems as well as high-efficiency alternators.

As the activities of all the other Bosch China business sectors show, “Invented for Life” goes far beyond automotive technology:

• By the end of 2009, the Power Tools division in China will have launched more than ten new cordless power tools equipped with lithium-ion technology.
• BSH China continues to improve the energy efficiency of its household appliances. 76 percent of its refrigerators and all of its washing machines already meet China’s new energy efficiency level 1 standard.
• Bosch’s energy-efficient heating systems are already installed in a number of buildings in China, including the solar thermal system with 85 collectors at the German/French school in Shanghai and the upcoming installation of 180 collectors for a building of the Ministry of Education in Beijing.

Tapping the potential of renewable energies

“These activities conserve resources and reduce emissions, but this is just one side of the environmental coin,” Fehrenbach said. “We are also working to fully tap the enormous potential of renewable energies.” Since the new Bosch Rexroth facility for wind technology was opened in Beijing in late 2008, the company has provided its Chinese customers with 500 generator gearboxes for wind turbines. With an output of 850 kilowatts, one such turbine can provide enough power for some 450 average Chinese households. Next month, gearboxes for 1.5-megawatt and 2-megawatt turbines are set to go into production. These investments demonstrate Bosch Rexroth’s ongoing commitment to supplying its Chinese customers with locally manufactured products that meet the price and growing quality requirements of the local market.

Bosch is also expanding its efforts in the area of solar energy. The new global division aims to find technological answers to the complex challenges of fully exploiting the potential of the sun. “We see our advantage in a long-term orientation with a clear focus on high-quality, and sustainable and durable products with reliable performance,” said Fehrenbach. “We see many areas of potential cooperation in China and look forward to contributing our technologies.”

Bosch’s ongoing commitment is also reflected by its investments in the country, which have increased almost sixfold, from 52 million euros (490 million CNY) in 2003 to some 290 million euros (3 billion CNY) in 2008. And while investments were cut back in all of the world’s regions as a result of the global recession, Bosch continues to invest nonetheless. In 2009, some 160 million euros (1.5 billion CNY) were invested in China, particularly for future-oriented technologies in renewable energies and powertrain electrification.

“We not only aim to strengthen our local presence in China, we also strive to have a high number of local experts on board,” said Fehrenbach. By early 2010, some 1,500 associates will be developing new technologies for the local market. The localization rate of some products, such as the new ABS generation, set to be launched in 2010, will be as high as 85 percent.

Bosch also continues to invest in attracting talented people and keeping them on board by providing attractive development opportunities. Some 100 Chinese trainees are currently participating in the two-year “Bosch China Trainee Program,” which provides on-the-job training. This is in addition to the thousands of associates who have already benefited from courses at the Bosch China Training Center.

Additional information can be accessed at www.bosch.com.cn