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Siemens to raise percentage of Hungarian suppliers

Siemens aims to raise the proportion of its Hungarian units’ domestic suppliers from 50% to around 70%, primarily SMEs, chairman-CEO Dale A. Martin said. The company also announced a 6% revenue growth in its 2010 business year that ended on September 30.

Siemens is expecting the launch state developments in which it has successfully participated before due to its know-how and technological expertise, Martin told MTI. He also stated that Hungarian suppliers’ business could also improve if state orders and exports thrive.

The domestic group’s revenue climbed to HUF 89.7 billion this year, half of which was generated from exports, half of which from the home market. The group’s profit slipped 15% to HUF 4.04 billion during the period.

Stock of new orders reached HUF 79.3 billion in the 2009-2010 business year, down 11.5% from the previous business year, largely because of a big power plant order in the base period. Hungarian units made capital expenditures of HUF 12.5 billion in last two years.

Martin added that Siemens does not aim for fast growth in the country and the region, but wants to strengthen its position gradually. Siemens employs 1,857 people in Hungary, and is now looking for another hundred new hires, he said.

He also announced that they are integrating their production units Siemens Erőműtechnika Kft and Siemens Transzformátor Kft into the main company Siemens Zrt, in line with the parent company's global strategy. (MTI-Econews, BBJ)