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Siemens, one of the world's largest electrical engineering and electronics companies, has quickly increased its presence in the Chinese steel market through deals with local companies.

"The Chinese market, which now accounts for over 10 percent of our global market, will remain one of the most important markets for us in the next few years," said Richard Pfeiffer, head of the metals technologies division of the Siemens Industrial Solutions and Services (I&S) Group.

Siemens I&S has signed an agreement with Shougang Jingtang United Iron and Steel Co, to supply electrical engineering equipment for three new strip-treatment lines. It includes the basic and process automation and all of the drive systems for the three lines.

The deal is valued around 18 million euros and the lines are scheduled to start production in the spring of 2009.

The company has also signed an agreement with Baosteel, China's largest steel maker, to supply drive and automation equipment.

The focus of the Baosteel project is to equip the production facilities with powerful and reliable drives, which will increase the productivity and availability of the rolling mills, Pfeiffer said.

The company has also eyed small- and medium-sized steel companies in China. It has signed agreements with Jiuquan Iron and Steel Group and Chengde Iron and Steel Group respectively to supply automation equipment.

"By taking over the Austrian steel giant Voest Alpine Industrieanlagenbau (VAI) in 2005, Siemens expanded its steel plant project business with automation and electrical engineering solutions by adding mechanical and process solutions to its already existing range of products," Pfeiffer said. "Now we can provide iron and steel producers with ways of improving their entire value-added chain."