German conglomerate Siemens AG said its annual China sales jumped 28 percent on strong demand for gas turbines, and forecast further growth.

"You have seen growth of 9 percent plus and now growth of 9 percent minus. I don't see a negative impact," said Siemens CEO Heinrich von Pierer, who steps down this month after a 12-year run. "We are quite happy with the profitability and growth."

China is facing a shortage of electricity due to underinvestment in the sector in the 1990s and a dramatic rise in demand in past years as its economy races ahead.

Siemens said China sales hit 38.4 billion yuan (US$4.6 billion) in the year through September. New orders overall in China rose 34 percent to 41.8 billion yuan in fiscal 2004, with those in the power segment alone surging 63 percent, von Pierer said.

The closure of small power projects in some provinces, part of China's campaign to clamp down on overinvestment, was not expected to translate into any cancellations given the country's growing need for electricity, he said.

Siemens won its first contracts to supply gas turbines to China last autumn and has long been active in the country in advanced steam power plants.

Source: Shenzhen Daily-Agencies