Herrenknecht AG sets up Asia-Pacific Headquarters in Singapore to target fast-growing Asian markets.
Singapore, October 25, 2004 - Today, Asia accounts for approximately 30 percent of the annual incoming orders of the Herrenknecht Group (sales 2003: 356 million EUR). Besides Europe, Asia is Herrenknecht?s most important market for tunnelling technology with diameters ranging for small diameter (< 4.20m) and large diameter tunnelling machines (> 4.20m).
Herrenknecht AG already plays a leading role in Asia today. Based on the number of machines sold, China is currently the largest Asian customer country. Over the past five years, Herrenknecht AG has sold more than 40 tunnelling machines and five Horizontal Directional Drilling Rigs. These were primarily used to construct Metro and Sewer tunnels in cities such as Guangzhou, Nanjing, Tianjin, Shenzen, Chongqin, Honghua, Chenglingji, Beijing and Hong Kong.
In order to maintain its market position in Asia, Herrenknecht AG is setting up its Asia-Pacific Headquarters in Singapore. The new HQ called ?Herrenknecht Asia Headquarters Pte Ltd? will oversee existing Herrenknecht subsidiaries in Singapore, China, Malaysia, Thailand and Australia. It will also extend the distribution network to new markets such as India, Vietnam, Korea, Laos and Indonesia. More importantly, the Headquarters will serve as a centre for Research and Development. This Asian Centre is situated in Singapore to ensure the greatest proximity to customers and projects in the Asian market.
Other activities that the new Headquarters will undertake are:
- Development of business plans for the entire Asian market
- Planning of marketing and brand strategies
- Project management and project development
- Market and project-related research and development
- Financial management, accounting, legal support and staff training
- Financing and activity-based management
- Regional corporate governance
- Safeguarding of knowledge and know-how worth protecting
- Provision of technical support and service
- Spare parts and wear-and-tear parts management
- Transport and logistics in Asia
- Production and procurement in Asia
The establishment of Herrenknecht?s Asia-Pacific Headquarters in Singapore is a result of the country?s excellent connectivity as well as economic and political infrastructure. Singapore also has a rich pool of talent, which Herrenknecht will tap on to, develop its managerial capabilities. Singapore, which is fully integrated into the global economy serves as a beachhead for Herrenknecht to penetrate other Asian markets. In 1994 Herrenknecht founded its first Asian subsidiary >>Herrenknecht (Asia) Ltd.<< in Bangkok for selling small diameter machines in Asia. With the founding of the >>Herrenknecht (Asia Pacific) Pte. Ltd.<< in 1997, Singapore was made the starting point for the successful market launch of Herrenknecht large diameter machines in the Asian market. This region is beside Europe the most important market worldwide for tunnelling technology with any diameters.
Chairman of EDB, Mr Teo Ming Kian, said, "Herrenknecht is a global leader in tunneling technologies and we are happy to see them establish their Asia-Pacific Headquarters in Singapore. Together with other leading companies such as Siemens, M. W. Zander and Emerson, Herrenknecht?s HQ will take us one step closer to our goal of becoming an Engineering Services hub. We are confident that with the new HQ, Herrenknecht will effectively penetrate fast-growing Asian markets such as China and India."
By concentrating business activities in Singapore, Herrenknecht expects a solid increase in sales over the next few years. In the 2005/06 fiscal years, sales of S$10 million are expected. The volume of sales generated through the Asia headquarters in Singapore is targeted to hit S$65 million by the 2009/10 fiscal years.
With 20 tunnelling machines shipped and/or ordered, Singapore is a particularly important Asian reference market for Herrenknecht small and large diameter tunnelling systems. Five large Herrenknecht earth pressure shields and five Microtunnelling machines are being used in the construction of the ?Deep Tunnel Sewerage System? in order to excavate 40 km of tunnels for one of the world?s largest, deepest and most modern inner city waste water systems
