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SAP Labs China in Shanghai will support current development of the German company's enterprise management products and address local customers' development requests. SAP has run a software center in the country for over seven years, but it worked mainly on localization for the Chinese market.
The new 120-engineer center "is designed to be a world-class software development lab, qualitatively on a par with all of our SAP Labs facilities worldwide," Peter Zencke, the executive board member responsible for SAP Labs worldwide, said in a statement.
He said the facility is already developing products for customers in Europe and the United States, and will take on "strategic development projects" assigned by SAP's executive board.
The center helped develop products for small- and medium-size businesses in China, including the recently launched SAP Business One, the company said.
The software maker plans to continue its expansion in China, and the president of SAP Labs China, Shang-Ling Jui, said the labs could strengthen the company's competitive edge in the Chinese market.
"The scope of work we have already accomplished underscores that this will be the case for installations of all sizes and in all industries," he said in a statement.
SAP already has a range of Chinese company clients, such as Lenovo, Haier, Sinopec, Cosco, Minsheng Bank and the FAW Group.
Jui also said that SAP is looking for local partners in Linux, with some talks ongoing, but no details were given, according to a People's Daily report.
Zencke said the company will invest around $11.8 million annually in SAP Labs China.
Separately, SAP was recently reported to be planning an investment of $120 million in its business in India, with the aim of tripling business there within three years.
The new SAP Labs facility in Bangalore is the largest for the company in the Asia-Pacific region. The campus will eventually house a staff of 1,100, according to a statement from SAP.
The focus of the center will be global R&D for products and services introduced to SAP customers in India and other markets worldwide.
CNETAsia staff reported from Singapore.
