Siemens, the German engineering and technology group, announced a global investment plan worth 2 billion euros ($2.16 billion).
This initiative aims to address the increased demand resulting from global stimulus packages. As part of this plan, Siemens will establish new factories, research and development centers, and training sites worldwide.
One of the key investments within the program is a 200 million euro project to construct a new plant for Siemens’ industrial automation division in Singapore.
Siemens will also boost its research and development spending by 500 million euros this year.
Siemens CEO Roland Busch stated that the company is experiencing remarkable growth exceeding market expectations. The investment strategy unveiled is designed to accelerate future growth, foster innovation, and enhance resilience.
In the past year, the company achieved a 16 percent increase in annual sales, reaching 72 billion euros. Siemens anticipates a 7 percent annual expansion in its total addressable market for its wide range of products, including trains and industrial software, from 2022 to 2027.
The company aims to outpace its competitors, increase its market share, and seize opportunities presented by stimulus programs such as the Inflation Reduction Act in the United States and Europe’s Green Deal.
Additionally, Siemens aims to reduce its dependence on China amidst rising tensions between Beijing and Washington, with the United States attempting to limit China’s access to cutting-edge technology.
Siemens’ investment program will encompass further investments in Europe and the United States, potentially driven by disruptions caused by the global COVID-19 pandemic that impacted supply chains and logistics.
Earlier reports indicated that Siemens initially considered China as a location for the Singapore project, but concerns over growing geopolitical tensions led to a change in plans.
In addition to the Singapore project, Siemens will invest 140 million euros to expand its digital factory in Chengdu, China, and establish a new research and development center in Shenzhen.
