Demonstrating the company's commitment to supporting Iraq's power sector, Siemens has expanded an existing service agreement with KAR Group in Iraq to provide comprehensive operations and maintenance (O&M) for two newly added SSC5-2000E power plant units at the Khormala plant in the Kurdistan region.The 930-megawatt (MW) natural gas-fired power plant meets nearly 30 percent of the power demand targeted by the Kurdistan Regional Government (KRG), supplying more than four million Iraqi people with reliable electricity. The extension of the service agreement is set to improve operational flexibility, availability, and performance of gas turbines for the next 15 years.The agreement between Siemens and KAR Group aligns with Iraqi energy production goals. According to the Mena Power Report 2017, the current power demand in Iraq stands at 21GW and is growing faster than supply. The Kurdistan Regional Government plans to increase capacity by building new power plants and increasing the efficiency of existing facilities."With more than 20 years of experience in O&M of power plants, we currently manage approximately 2,800 MW across the Middle East and North Africa region and over 16,000 MW globally," said Gianluigi Di Giovanni, Senior Executive Vice President of Siemens Power Generation Services in the Middle East. "Our global resources and fleet expertise enable us to provide complete plant services and management. The plant is truly a landmark project, supporting the development goals of the Kurdistan region. That's why we are proud to expand our collaboration with KAR Group to deliver reliable and stable electricity supply to people's homes."The Khormala multi-year agreement with Siemens covers the operation and maintenance of six SGT5-2000E gas turbines, six SGen5-100A generators along with the associated auxiliary and ancillary systems. It also includes the implementation of Siemens Power Diagnostics®, which is part of the company's "Digital Services for Energy" portfolio, to improve asset visibility, reliability and availability.Siemens data-driven services enable valuable data from different assets to be analyzed. From there, data is transformed into actionable insights—such as diagnostics, troubleshooting and condition forecasting—that can help improve plant reliability and reduce downtime. In addition, the data processed by Siemens Power Diagnostics® can help balance maintenance costs, improve inspection intervals and provide invaluable insights into operational risks.Siemens has managed the operation and maintenance of Khormala since 2013 under a multi-year services agreement. Currently, the company has more than 40 personnel on-site managing the power plant on behalf of KAR Group.
We released our third quarter results for fiscal year 2017 on August 3, 2017. The Conference Call for journalists and the Analyst Call were broadcast live.
- Revenue rose 8% compared to Q3 FY 2016, to €21.4 billion, including a strong performance by short-cycle businesses
- Orders came in 6% lower, at €19.8 billion, due to sharply lower volume from large orders at Power and Gas and at Siemens Gamesa Renewable Energy, the business resulting from the merger of Siemens' wind power business with Gamesa Corporación Tecnológica S.A. (Gamesa) beginning with Q3 FY 2017; the book-to-bill ratio for Siemens overall was 0.93
- On a comparable basis, excluding currency translation and portfolio effects, revenue rose 3% and orders were 9% lower
- Profit Industrial Business rose 3% to €2.3 billion; as expected, negative merger and acquisition effects related to Gamesa and Mentor Graphics Corporation (Mentor Graphics) reduced Industrial Business profit margin to 10.4%
- Net income rose 7%, to €1.5 billion; basic earnings per share (EPS) of €1.74, up from €1.64 in Q3 FY 2016 despite negative merger and acquisition effects
"Our global team delivered a solid quarter with revenue up 8% and net income growing by 7%. Our digital enterprise business impressively underscored its leading position in the market. We are fully on track with Vision 2020 and for another strong year."
- Supervisory Board decides to extend Kaeser's appointment until 2021
- Following successful implementation of Vision 2020, focus on next steps
The Supervisory Board of Siemens AG has extended Joe Kaeser's appointment as President and Chief Executive Officer ahead of schedule. His term of office will now extend until the Annual Shareholders' Meeting in 2021. This move is intended to ensure the continuity and stability needed for sustainable and successful implementation of the company's Vision 2020 strategy program. "Over the past few years, Mr. Kaeser has driven Siemens' realignment with great dedication and entrepreneurial spirit," said Supervisory Board Chairman Gerhard Cromme. "He's not only a guarantor of success, but also of stability in increasingly turbulent times. From the perspective of the Supervisory Board, it's all the more gratifying that we'll be continuing the extremely successful collaboration with Mr. Kaeser, which is based on the highest levels of trust."
Siemens and The AES Corporation announced on July 11, 2017 their agreement to form a new global energy storage technology and services company under the name Fluence. The joint venture will deliver the Advancion and Siestorage energy storage platforms and will continue to develop new storage solutions and services. Fluence will empower customers around the world to better navigate the fragmented but rapidly growing energy storage sector and meet their pressing needs for scalable, flexible, and cost-competitive energy storage solutions. Its global headquarters will be located in the Washington, DC area with additional offices located in Erlangen, Germany and other cities worldwide. The transaction is expected to close in the fourth quarter of calendar year 2017, subject to regulatory and other approvals.
- Special coating on windowpanes significantly improves reception
- Rhein-Ruhr Express first train worldwide with the new technology
- Maintenance-free, cost-effective solution
The Rhein-Ruhr Express (RRX), a train for Germany's Rhine-Ruhr metropolitan region, will be the world's first train in series production to feature a new radio-frequency windowpane solution from Siemens that massively improves mobile phone reception in trains. The new windows on the RRX will allow radio waves to pass through up to 500 times more easily than is the case with conventional thermal insulation glazing. As a result, passengers will be able, for the first time, to surf the Internet and make telephone calls freely without the need for special cellular-signal amplifiers (in-train repeaters). Train operators will also profit from the new technology: in new vehicles, the windowpane solution is significantly more cost-effective than installing in-train repeaters.
Singapore and Siemens aim to join forces in a drive to make the Southeast Asian city-state a "smart nation." As a result, Singapore will be the first country in the world to pilote MindSphere – Siemens' open, cloud-based operating system for the Internet of Things – to digitalize its infrastructure as much as possible. Siemens is supporting this master plan by setting up a digitalization hub. The hub was inaugurated on July 11, 2017 in parallel events in Singapore and at Siemens' headquarters in Munich: Armin Bruck, CEO of Siemens Singapore, opened the hub in Singapore while Singapore's Prime Minister Lee Hsien Loong and Joe Kaeser, President and CEO of Siemens AG, signed a symbolic plaque in Munich. At the Digitalization Hub, Siemens will develop and offer new digital applications.
- Powered by MindSphere – Siemens' cloud-based open IoT operating system, the Hub will drive digitalization in the country
- Team of up to 300 digitalization experts by 2022
- Development of new digital applications for companies in Southeast Asia, three cooperation agreements signed today
To address the substantial opportunities in urbanization and industrialization that are rapidly arising in Asia, Siemens will be setting up a Digitalization Hub in Singapore. At this Hub, Siemens will develop innovations for the Internet of Things (IoT) and Industrie 4.0 in collaboration with its customers in Southeast Asia. Supported by the Singapore Economic Development Board (EDB), the Hub will also complements the county's efforts to become a Smart Nation, because Siemens will be using its IoT operating system MindSphere - to drive digitalization in Singapore.
- Siemens cooperates with Chinese government in digital manufacturing, innovation and technology applications
- Memorandum of Understanding signed in presence of German Chancellor Angela Merkel and Chinese President Xi Jinping
- Strategic partnership with Chinese enterprises in industrial Internet of Things (IoT) and intelligent manufacturing
Siemens has entered into agreements with the Chinese government and Chinese enterprises to continue joint activities for exploring the potential of digitalization and for supporting measures to upgrade and transform China's industrial sector. The documents were signed today in Berlin in the presence of German Chancellor Angela Merkel and Chinese President Xi Jinping.
After a six-year project period, including three years of construction work, the new Siemens headquarters building in Munich opened its doors on June 24, 2016. With about 45,000 square meters of aboveground floor space, the company has created a modern, inspiring work environment for about 1,200 employees. Environmental friendliness and energy efficiency play a key role here: the new building meets the world's highest sustainability standards. In 2010, Siemens and the city of Munich officially announced the launch of this innovative construction project and organized an architectural competition. The winning design, which was developed by the Danish architectural firm Henning Larsen Architects, skillfully combined tradition with the future. The historic Ludwig Ferdinand Palais and its adjacent building were renovated and seamlessly integrated into the new cutting-edge headquarters. Ever since the building opened in the summer of 2016, its ground floor and inner courtyards – with trees, a café, a restaurant and a water feature – have been publicly accessible. The new Siemens passageway creates a pedestrian corridor enabling Munich residents and visitors to stroll between the Bavarian capital's historic center and its museum district. The project was implemented by Siemens Real Estate, which is a leading corporate real estate company and is responsible for all of Siemens' real estate activities.