SIEMENS 140 YEARS IN AZERBAIJAN

Exclusive interview of general director and head of Representative Office of Siemens AG in Azerbaijan Samir Akhundov.

Siemens' Azerbaijan is actively engaged in different sectors and fields. Siemens was a principal pioneer of the electricity industry in Azerbaijan, and up today it remains at the forefront of technological change. Getting back to the history how the company has started operating in Azerbaijan we will see that Siemens' great contribution to Azerbaijan economy and creation of high infrastructure started in the second half of XIX - and beginning of XX centuries.

Mr. Akhundov, how has Siemens begun its activity in Azerbaijan?

In 1864 Carl and Walter von Siemens brothers purchased and started the exploration the copper field in Gedabey (Western Azerbaijan) and since that time Siemens' renowned history began in Azerbaijan.

In 1901 Siemens built and handed over the Bibi-Eibat electric power plant which became the first power plant in Azerbaijan. Since that time the name of Siemens in Azerbaijan and in whole world became a synonym of advanced technologies, scientific progress and steady growth.

Siemens today is the largest electrotechnical concern, world leader in the engineering field for large-scale spectrum of industrial branches and a company which is actively operating in Azerbaijan for about one and the half century. Concern represented in more than 190 countries and joined more than 420.000 employees.

Siemens name is known in whole world. Siemens is innovation, orientation for consumers' needs and global competence. Company were able to gain of great scientific experience in electronic and electrotechnical fields during 150 years of operating and the network of enterprises and representatives of the company were established in the world.

Siemens annual turnover exceeds 74 bn Euro and the large spectrum of products and services offered by company allows to it in staying as a power and competitive during the times of unprofitable economy situations.

In which fields of Azerbaijani economy does Siemens participate?

Siemens is to be famous by its traditions and at the same time innovations in different fields of business. We engaged in information science and communication, automation and industrial control, transport and energy. We also provide the customers with the complete medical solutions. The range of our activity is really global. We have great plans regarding development of Azerbaijani market, and this development is impossible without the high qualified and purposeful persons that like to do their job in a creative manner.

Historically Siemens had strong relations with economic structures of the former Soviet Union but after collapse of USSR our company began to build the direct contacts with the partners in new countries. Signing of historical oil contracts and the growth in economy, including the internal stability in Azerbaijan gave us a chance to open in 1998 local Representation Office. And at present Siemens is most actively presented in the fields of information and communication, energy and Medical solutions.

Could you please in detail inform us about the mission in the field of information and communications?

The one of communication department branches - "Communication Mobile Department" of Siemens offers to its customers in Azerbaijan the whole spectrum of facilities, solutions and services for business in cellular connections - mobile phones and accessories, cordless telephones and communication systems, cordless modules, base stations and intellectual networks, switching facilities and others.

Our strategy goal is supporting and further strengthening of leadership as well as in Azerbaijani market of GSM and in cellular communication system market of the third generation. We are interested in long-term cooperation and provided there our local presence. Construction of strategy partnership with Azerbaijani operators of mobile communications provides us with large possibilities for mutual strengthening of positions in our country.

The other department branch of Siemens communications - "Information Communications Network" supplies to Azerbaijani market the new network technologies and high technology solutions for network operators and providers. This branch offers to consumers the whole range of products and services for modern networking business, including the processing and delivering of set systems of corporate and operator class, switching and transfer equipment, also service and infrastructure.

One of the achievements for 2004 was the opening of Siemens LLC (Limited Liability Company), company in Azerbaijan. The Siemens Communications Group now has a presence in Baku with its own Local Company.

Does Siemens implement in Azerbaijan any projects in the field of electroenergetics?..

"Power Generation (PG)" department fulfills the installations and facilities for processing of electric power. Department is ready for supplying to market the equipment for electric power plants with big power that using organic fuel and renewable energy sources, the newest computer-aided systems for control of technologies processes (I&C), engineering services on projecting and construction of electric power plants and also the control system over facilities and components in the process of operation for providing of their safety operation.

Recently Siemens won the tender for construction of combine cycle power plant in Sumgayit. This project will become the largest project of the Concern in our country. There will be installed two gas turbines, two boiler-utilizes and one steam turbine. It means that this power plant will be meeting to the best world analogues in stated field. At present, Azerbaijan is one of the leaders in the field of advanced technologies introduction into energy in CIS and so, the project on building of such kind of constructions will be realized here. Project financing will be provided by leading European banks consortium. The putting into operation of this combine cycle power plant will let to increase of reliability and regular operation of energy system of the country. During the process of plant's construction will be created many new working places, which is very important for Azerbaijan.

It is also necessary to note that there is produced a large-scale spectrum of industrial gas turbines units with different powers at PG factories and plants.

And they are used as drives of pump-and-compressor equipment that is very important taking into consideration the development of the largest oil and gas projects in Azerbaijan.

The other company's department "Power Transmission and Distribution (PTD)" is supplier of equipment, complete solutions and services through reliable and economy power energy transfer from electric power plant to consumer. The main sphere of activity of this department covers the production of units and high voltage & medium voltage components, power and distribution transformers, protection digital devices such as Siprotec.

In 2000 there was supplied and adjusted the newest equipment for transmission networks at Absheron peninsula by Siemens within the frame of electric power transfer rehabilitation project financed by KFW (credit totally 30 Mio DM). At present the implementation of the second stage of this project is fulfilled and it is also financed by KFW (credit totally 15 Mio Euro).

Today on the credit side of Siemens also supplement of the equipment and commissioning of substation at Sangachal oil terminal for BP Azerbaijan and also the construction of high voltage substation in Aghdjabadi which does not have its analogue in the country.

As far as large did find its applications of Siemens discoveries in the field of medicine in Azerbaijan?

Siemens is traditional supplier of medical equipment to Azerbaijan. Medical division of company is one of the leading departments of Siemens. Medical department today offers the large assortment of medical facilities composed of more than 7.000 products.

Being one of the world leaders in the field of medical equipment, our goal is providing the customers with whole spectrum of services and solutions in the medicine field: ranging from imaging systems for diagnosis and therapy equipment for treatment, electro medical units to IT solutions that optimize workflow and increase efficiency.

Medical department operates at Azerbaijan market of medical equipment for a long time and has an experience in implementation of unique projects for our country. Among them: establishment of Cardiosurgery Department at Central Hospital of Oil Workers and turn-key project of renovation of the Central Clinical Hospital (CCH). CCH rehabilitation has been fulfilled within the frame of financing of the German Bayerische Landesbank (credit totally $11 Mio).

At the same time among our customers and partners are not only the largest medicine centers, but also private centers and clinics. They are Medi Club, City Hospital, HB Clinic and many others.

Siemens together with local specialists in the healthcare takes care about population's health and works to contribute into formation of country's future providing it with high quality medical facilities relying on professionalism of company's staff operating in Azerbaijan.

Which mite was contributed by company to development of Azerbaijan -German relations?

Siemens is active member of the number of the organizations and in particular CIBC (Caspian Integration Business Club), AMCHAM (American Chamber of Commerce in Azerbaijan) and DAWF (Deutsch-Aserbaidschanischer Wirtschafts Forder / German - Azerbaijan Economy Assistance Union). Within the frame of these organizations Siemens actively takes part in economy development of Azerbaijan. Particularly in the frame of DAWF with around 50 German and Azerbaijan member-companies there are expanded the Azerbaijan-German economy relations, bilateral relations between Azerbaijan and German businessmen getting direct and German investments are attracted into Azerbaijan.

For last year our activity together with the state structures and officials of the Azerbaijan government has become more active. As example I can bring this fact that DAWF members constantly participate in the business-forums lead by the Ministry of Economic Development Mr. F. Aliyev not only in Baku, but also in the regions of Azerbaijan what is very important for equal development of the country.

The number of members of German-Azerbaijan Business Association increase, the number of German and German-Azerbaijanian JS companies also increase. These companies do business in different areas including IT technologies, industry, oil sector, civil engineering, medical services and etc. Under supporting of DAWF there will be held Azerbaijan-German investments forum in Germany this summer. The appropriate arrangement was achieved during the official visit of the President of the Republic of Azerbaijan Ilham Aliyev to Germany.

How do you see the future of company's presence at Azerbaijani market?

Siemens has already operated in Azerbaijan for a long time and expanse its presence at local market from year to year. Azerbaijan today provides the foreign investors with wide possibilities in all the fields, and particularly in the sphere of leading innovations. In Azerbaijan existing the great industrial base, wonderful engineers and new generation of excellent managers. These facts created the base of fast growth, perspective and hopeful subdivisions of the multinational Siemens AG concern in our country. For global international company like ours, it is necessary to include all of these into our structure and introduce the elements of our business in Azerbaijan.

Thanks for your interview.