Siemens presents €2 billion investment strategy to boost future growth, innovation and resilience

Source: Siemens

Our technology address secular growth trends where our customers need our support to become more competitive, resilient and sustainable. Siemens is experiencing significantly above-market growth. Today we announce an investment strategy to boost future growth, drive innovation and increase resilience” said Roland Busch, President and Chief Executive Officer of Siemens AG. The investments underpin our strategy of combining the real and the digital worlds – as well as our focus on diversification and local-for-local business. We are clearly doubling down on our strong global presence to support growth in the most relevant markets in the world.”

In addition, there is an expected increase of around €0.5 billion in research and  development (R&D), such as artificial intelligence and the industrial metaverse, in  fiscal year 2023 versus prior year. This R&D is focused on strengthening Siemens’ leading position in core technologies including simulation, digital twins, artificial  intelligence or power electronics, as well as supporting the development of the  Siemens Xcelerator open digital business platform. The company recently  announced a partnership with Microsoft to speed up code generation for industry  automation by using ChatGPT. With NVIDIA, Siemens is working to build the  industrial metaverse to improve design, planning, production and operation of  factories and infrastructures.

New and additional capacities in Southeast Asia

To meet growing demand in Southeast Asia, Siemens today announced an entirely new high-tech factory in Singapore, which will be developed using Siemens' own  leading digital twin and innovative, intelligent hardware technologies. Investment in the factory will be around €200 million. The plant will set a new standard for connectivity to showcase the possibilities of digitalization, as well as incorporating highly-automated manufacturing processes. The investment will create over 400  jobs.

Series of announcements

Earlier this year, Siemens committed to expand production in Trutnov, Czech  Republic, to enhance capacity at its WEF Global Lighthouse Factory in Amberg,  Germany. Moreover, Siemens invests €30 million to expand its switchgear plant in Frankfurt-Fechenheim, Germany, while Siemens Mobility recently announced  spending $220 million to build a new rolling stock factory in Lexington, North  Carolina, to meet growing demand for passenger trains in the United States. The  plant will create more than 500 jobs by 2028.

The planned €2 billion investments and expected increase of around €0.5 billion in research and development include Siemens Healthineers./.