Localization strategy helps Bosch China grow steadily

The world's leading technology and service provider Bosch Group announced its 2011 business performance in Beijing on April 27, 2012. The consolidated sales of the Bosch Group in China reached 42.3 billion yuan, a year-on-year increase of 13%. “The steady growth of Bosch's business in China has benefited from our continuous investment and deepening localization strategy.” Rui Shiyi, head of Bosch Group and head of Asia Pacific, stated that “a stable business growth momentum will enable China to continue to be a Bosch Group. One of the important driving forces for future development."

The steady growth of Bosch China's performance was attributed to the outstanding performance of its three major businesses in China: Automotive technology as Bosch China’s largest business unit generated sales of RMB 24.9 billion in 2011, a year-on-year increase of 7%, again higher than that of automobiles. The average growth rate of the market; thanks to a series of market demands brought about by the upgrading of manufacturing industries and the acceleration of infrastructure construction, the industrial technology business has the strongest growth momentum in 2011, an increase of 28% year-on-year, with sales reaching RMB 10 billion; The consumer goods and building intelligent technology business continued to maintain a stable development momentum. Sales increased by 18% to RMB 7.3 billion.

Despite the global economic downturn, Bosch Group's global performance still achieved strong growth beyond expectations in 2011. Bosch has generated global sales of 51.5 billion Euros, a year-on-year increase of 9%. The market position of the three major businesses was further consolidated: Automotive technology as the largest business unit achieved sales of 30.4 billion euros, an increase of approximately 8.2% year-on-year; industrial technology business achieved the strongest growth, an increase of up to 21%, and sales of approximately 80 Billion euros. Consumer goods and building intelligent technology business also achieved sales of 13.1 billion euros in 2011, a year-on-year increase of 4.4%. With the development of the business, Bosch's demand for talent has been further expanded. In 2011, Bosch added 19,000 new employees worldwide. By January 2012, the total number of employees had exceeded 302,500. In 2012, Bosch Group expects to achieve growth of 3% to 5%, while maintaining a high level of innovation, and its 2012 R&D investment will exceed 4 billion Euros.

Strengthen core business and seize future opportunities

"As a leading global provider of technology and services, Bosch must cope with all kinds of sudden fluctuations from different regions and industries. It is no exception in China," said Dr. Chen Yudong, President of Bosch (China) Investment Co., Ltd., "Bosch in China The success and long-term development will require a good balance between strengthening existing core businesses and expanding new product areas based on global business strategies."

Bosch's investment in China continued to grow in 2011, reaching 4.1 billion yuan. Bosch China's core business has been further strengthened: automotive technology business and numerous businesses including Bosch Rexroth, thermal technology, and packaging technology have significantly increased the production capacity in China to meet the growing demand of the local market; in addition, Bosch has always been To strengthen local research and development capabilities. Up to now, Bosch's three major businesses have established 13 technology centers in China, and more than 2,700 R&D personnel are dedicated to developing products and technologies that meet the needs of the local market. For example, Denoxtronic 6.5, an economical commercial vehicle exhaust after-treatment system launched in 2011, was developed specifically for the Chinese market and can meet the forthcoming National IV emission standards.

Improving product lines and expanding service scope through continuous investment

Through the acquisition of Taiwan's Unipoint and SPX's automotive service solutions business, Bosch Automotive's after-sales service has successfully expanded its product and service range to form a comprehensive automotive after-sales service solution. Bosch Thermotechnology, through the acquisition of China's industrial boiler manufacturer Wuhan Tianyuan, has filled Bosch's gap in the field of water-tube boilers – making Bosch Thermotechnology a leading system-wide supplier of HVAC and comfort hot water.

In 2012, 30% of the total investment volume of the Bosch Group will be invested in the Asia Pacific region. By 2015, Bosch's annual investment in China will reach 3-4 billion yuan. Rui Shiyi said: "The sustained and stable development of China's economy is an important reason for the Bosch Group to strengthen its strategic presence in China."

The number of employees in China continues to grow

As of the end of 2011, the total number of Bosch employees in China reached approximately 30,200. By 2015, the total number of Bosch employees in China will increase to 50,000, of which management positions will almost double to 1,500. The ratio of local employees to senior management positions is planned to increase from the current 60% to 80%, and the proportion of local managers who hold departmental positions will increase to 90% in 2015. In early 2012, Bosch China was awarded the “China Outstanding Employer” certification by CRF (Joint Investigation Agency), an independent international human resource practice assessment and certification body.

Looking into the long-term and supporting China's sustainable development

In order to actively respond to the 12th Five-Year Plan of China formally announced in 2011, "Bosch will continue to make unremitting efforts in localization and make contributions to supporting China's sustainable development," said Chen Yudong.

Bosch China's three major businesses are committed to innovating green technology in related fields to meet the country's energy-saving and emission-reduction targets: In early 2012, Bosch China established a horizontal functional department that integrates its thermal, solar and security systems for China The rapid urbanization process provides energy-saving building technology solutions. In the field of electric mobility, a local engineering team of about 120 people is working on the research and development of new energy vehicles to contribute to this major solution for China’s future transportation; Bosch also In the future, the research and development of energy-saving technologies is accompanied by efforts: The Bosch “Global Academy Program” launched in 2011 has made a series of important developments in this area. Bosch has established joint laboratories with two of them and is already in the field of electric vehicle technology. Obtained the first batch of patents.

As the Chinese government accelerated the development of the central and western regions, Bosch China also continued to strengthen its business development in the western region in the face of the increasingly prominent advantages of the “Western engine.” While boosting the existing coastal business, Bosch’s three business segments have accelerated. Towards the pace of the Midwest market: In November 2011, Bosch Packaging Technologies announced that it will invest in Chengdu to build the second production base in China, and the Bosch Chassis Control System new plant will also be established in Chengdu in February 2012, making it an automotive technology business. One of China's important production bases. In 2011 alone, Bosch China established more than 10 regional sales offices in cities such as Changsha and Wuhan.

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