Siemens announces €2bn increased global investment

By Christof Rührmair and Bryn Stole, dpa

BERLIN – German engineering and manufacturing giant Siemens plans to spend about €2 billion ($2.16 billion) on new global investments in Asia, the United States and Europe.

The firm announced on Thursday that the investments would include new and expanded factories and research facilities around the world.

“Siemens is experiencing significantly above-market growth,” Roland Busch, the president and chief executive of Siemens, said in a statement. “Today we announce an investment strategy to boost future growth, drive innovation and increase resilience.”

Among the specific investments announced on Thursday is a plan to spend €200 million to build a high-tech factory in Singapore to produce automation technology. The plant will create 400 new jobs.

The company also said it would spend €140 million to expand a plant in Chengdu, China, and add another 400 jobs there as well. Further investments in Europe and the US would be detailed later this year, according to the company.

Siemens also said it would increase spending on research and development in the current fiscal year by €500 million, including work on artificial intelligence (AI) and the “industrial metaverse.” Siemens is collaborating with US tech companies Microsoft and Nvidia, among others.

The €2 billion investment plan announced on Thursday includes several projects detailed earlier this year, including the expansion of factories in the Czech Republic and in the German cities of Frankfurt and Amberg.

Siemens had also previously announced plans to spend $220 million on a new railroad rolling stock factory in the US state of North Carolina to build passenger trains for the US market. Siemens said on Thursday that the plant will create more than 500 jobs by 2028.

Around €1 billion in expected Siemens investments in Europe and the US have not yet been detailed by the company.

“We are clearly doubling down on our strong global presence to support growth in the most relevant markets in the world,” Busch said.