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Siemens PLC for industrial process control.

Siemens Commits $2.2B to Expand Global Manufacturing Network

June 15, 2023
Explaining it wants to continue combining “real and digital worlds,” the electronics, drives, and automation group also indicated it wants to gain supply-chain reliability.

Siemens AG announced investments totaling $2.2 billion to expand and improve its global manufacturing footprint, to make its organization more effective at overcoming supply-chain gaps and other global disruptions. The investments – which cover all Siemens’ investments for the current year – include new manufacturing capacity, research hubs, and training centers.

“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,” stated Siemens president and CEO Roland Busch.

The announcement was made in Singapore, where Siemens unveiled plans for a new, $200-million plant to produce industrial automation equipment for Southeast Asian markets. Another $153 million has been committed to expand a Siemens “digital” factory and build a new R&D center in China.

Further investments in manufacturing capacity in the U.S. and Europe will be announced later.

An estimated $545 million are targeted to improve Siemens R&D efforts, artificial intelligence (AI) capabilities, and “industrial metaverse” technologies.

Speaking at the Singapore event, the CEO said Siemens new investment program is meant as a response the supply-chain disruptions encountered during 2020-21.  Busch said that Siemens past effort to optimize logistics expenses made the company “over-dependent on certain countries.

"Reducing this dependency is in everyone's mind," he added. "This is why you see investments in places in Southeast Asia, (and) places like Mexico."

Already this year Siemens has committed to increase output at an electric motors plant in the Czech Republic; to expand capacity at the electronics hardware and industrial communications plant in Amberg, Germany; and to to expand its switchgear plant at Frankfurt-Fechenheim, Germany. The Siemens Mobility division is investing $220 million to build a new passenger railcar factory in Lexington, N.C.

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