Siemens Plans €2B Investment To Ramp Up Global Production In New High-Tech Factories

Author: Nabaparna Bhattacharya | June 15, 2023 07:36am

Siemens AG (OTC:SIEGY) plans to invest €2 billion for new manufacturing capacity, innovation labs, education centers, and more in its sites worldwide. 

Following investments in Germany and the U.S., the German tech behemoth will expand its production network and R&D capacities in Asia.

Siemens announced a high-tech factory in Singapore to serve the booming Southeast Asia markets. Investment in the factory will be around €200 million, creating about 400 jobs.

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"Siemens is experiencing significantly above-market growth," said Roland Busch, President, and Chief Executive Officer of Siemens AG. "Today we announce an investment strategy to boost future growth, drive innovation and increase resilience." 

This year, Siemens plans to boost its research and development spending by €0.5 billion to bolster its foothold in artificial intelligence and the industrial metaverse. In Q2 FY23, the company's research and development expenses totaled €1.528 billion, higher than €1.359 billion a year ago.

The latest investment strategy is a part of the company's manufacturing capacity expansion plan, which will be disclosed this year. 

The company also plans to expand the digital factory in Chengdu to boost further growth in China, investing €140 million and creating 400 new jobs.

In the U.S., Siemens Mobility recently announced spending $220 million. The company will build a new rolling stock factory in Lexington, North Carolina, to meet the growing demand for passenger trains, creating more than 500 jobs by 2028.

Siemens expects additional growth potential for Digital Industries, Smart Infrastructure, and Mobility in their addressable markets of around €175 billion over the next five years.

Price Action: SIEGY shares closed higher by 0.21% to $88.87 on Wednesday.

Posted In: SIEGY