BEIJING—Siemens AG, hoping to capitalize on China's growing demand for green technology, said Tuesday its environmental business accounted for a significant proportion of around 2 billion yuan ($293 million) worth of new orders it has signed in the past few days with Chinese firms.
The German engineering conglomerate, known for its coal-fired and nuclear-energy plant production, is increasingly generating its sales from energy-saving and other green-technology products. Revenue from such products in the latest fiscal year was €23 billion ($34 billion), out of total sales of €76.65 billion.
Economic stimulus programs around the world have been adding momentum to the market for green technology, Chief Executive Peter Löscher said, adding that Siemens expects orders of about €50 billion from these government programs over the next three years, with about 40% going to the company's green portfolio. About €1.4 billion will come from China, he said.
According to the China Greentech Report 2009, published in September by a group of Western companies and organizations to highlight the potential for environment-related projects in the world's most populous nation, China's market for clean technology could be valued at up to $1 trillion annually.
"Our green products and solutions have stabilized our business during the global economic recession, and we will continue to base our future growth on orders for these technologies," Mr. Löscher said.
While the global economic recession has bottomed, the business environment will still be difficult in 2010 in industrialized countries, Mr. Löscher said.
Siemens expects strong growth from China and India, and also Brazil and the Middle East.
Siemens said its mobility division in China had signed deals in airport logistics, signaling and rolling stock, with a total value of about 1.3 billion yuan ($190 million). The deals included operation and maintenance contracts for Beijing International Airport Terminal 3.
In addition to a 1.35 billion yuan investment in green businesses pledged earlier this year, Siemens is investing 500 million yuan in its operating companies in Tianjin over the next three to five years, the company said.
Part of the investment will be used for expansion of the production capacity of wind-turbine gear boxes.
