Siemens Financial Services (SFS) is expanding its financing business into the Chinese market. The company today announced the launch of a proprietary leasing company in China, the Siemens Finance and Leasing Ltd (SFLL). SFLL has been awarded the leasing license by relevant government bodies and is one of the first 100% foreign owned lessors in the financial services sector in China.
The company will provide its services to customers of Siemens as well as to external vendor partners in China. Siemens was the first foreign company to establish a captive financing operation in China in 1997 under the name of Siemens Financial Services Ltd. with its focus on group treasury activities.
China is one of the key markets worldwide for Siemens (see February issue of CF). With the “Twelve-Point Program for Profit and Growth” announced in May 2004, Siemens aims to further expand its strong position in the Chinese market by increasing market penetration, implementing growth strategies for all operating Groups, leveraging China’s talent potential and expanding China’s role in Siemens’ global value chain. By establishing Siemens Finance and Leasing Ltd Siemens is able to offer its substantial expertise and comprehensive finance solutions to local customers nationwide.
“By entering China, we recognize the growing need for sales financing solutions in this important market, “, comments Kari Kupila, head of the worldwide division “Equipment & Sales Financing” of Siemens Financial Services. “The new leasing company allows Siemens to offer a one-stop-shop for customers – that is advanced technology solutions, services and financing from a single source. We thereby can offer an attractive and complete package solution to our customers in China which helps to enhance our competitive edge. Our leasing services further demonstrate our strong commitment to the local market.”
Jill Lee, Executive Vice President and CFO of Siemens China emphasizes: “This strategic move is very important for Siemens in China as we can offer financing solutions to better serve our customers in this growth market. By providing local equipment leasing and asset management solutions, we aim to generate new business opportunities both from existing and potential customers in China, especially in the areas of medical solutions, logistics and assembly systems as well as telecommunications.”
