Siemens to focus on core operations amid crisis

BERLIN: Siemens AG intends to focus on its energy, health and industrial services during the global financial downturn and will move to create more jobs in low-cost countries, its chief executive said on Thursday.

Speaking in Berlin, Chief Executive Peter Loescher said the downturn was one ``not seen before in our generation,'' but said the Munich-based company was still poised to get new business in 2009.

``Stronger companies will get stronger and the weaker ones weaker'' as a result of the crisis, he said, adding the company would do more research and development inside Germany and build up more jobs abroad, as well.

Siemens currently employs some 430,000 workers worldwide, with 130,000 in Germany. It has this year added more positions in its energy sector, as well as in Brazil and China.

Siemens, which makes everything from wind turbines to trams, won't suffer from the current shortage of credit and would have no refinancing costs in 2010, said Loescher.

As for the ongoing corruption case - earlier this week, Siemens agreed to pay more than $1 billion in fines in Germany and the US - Loescher said that internal policing and investigation, along with an emphasis on integrity had been established.

He called the corruption allegations ``the blackest chapter in the firm's history,'' but said ``today, the company is a completely different one in terms of management organization and culture.''

Siemens has been embroiled in a far-reaching corruption scandal and has acknowledged making dubious payments to secure business.

An investigation commissioned by Siemens found evidence of violations across the company, and in several countries.

``Siemens is now a benchmark in terms of cooperation with the authorities, dealing with corruption and the changes we have made to the company,'' Loescher said.

Shares of Siemens were trading up 3.7 per cent to close at euro51 ($74.54) in Frankfurt trading.