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Press Release01 July 2026Siemens AGMunich
Siemens to invest €300 million in Germany to build electrical backbone of tomorrow’s industries
The
investment is part of a move to expand Siemens’ global capacity. In
March 2026, the company announced an investment of US$165 million in its
U.S. factories to support the rapid growth of AI and data centers in the U.S.
By expanding its manufacturing locations in Germany, Siemens is now taking a
further step to secure the global supply of electrical switchgear. The
investment encompasses a new supplier facility in Offenbach, Germany, and the
expansion of the company’s two existing plants in Frankfurt am Main, Germany.
Construction will start in July 2026. Production at the supplier facility will
begin in the spring of 2027. The investment will create up to 700 new jobs by the end
of 2030.
“This
investment will enable us to strengthen our leading role in the technologies
that will build the backbone of tomorrow’s industries,” said Roland Busch,
President and CEO of Siemens AG. “The demand for smart electrification –
whether for data centers, e-mobility or industrial automation – is growing
worldwide. To meet it, we’re expanding a location that already stands for
extraordinary flexibility and the highest level of variation diversity. Because
competitiveness is created where technology, knowhow and human experience
combine to provide customers with optimal solutions. This combination is
precisely what makes this location strong. It’s also why we’re continuing to
invest here.”
Siemens has
been producing electrical switchgear – which functions like a nerve center
to distribute and optimally regulate power in factories and data centers –
at its Frankfurt location for over 40 years. Demand for these systems is
continuing to increase worldwide – driven by the development of e-mobility
and data centers, the increasing electrification of factories and the growth of
the technology industries. The rapid spread of AI, in particular, is
accelerating investments in data center infrastructure and driving demand for
efficient power distribution technologies. Siemens’ Smart Infrastructure
Business booked record orders of €1.9 billion from data centers in Q2
2026. In the first half-year of 2026, the revenue generated by these
technologies also soared more than 45 percent to €1.8 billion.
“The data
center market is booming worldwide with growth rates well above 10 percent,”
said Peter Koerte, CEO of Siemens Smart Infrastructure. “The next generation of
data centers is already on its way. AI factories that produce only one product:
intelligence. Large-scale industrial systems with huge energy requirements.
None of this is possible without the next generation of switchgear: the
technological core of the super brain of tomorrow’s industry. And we’re
building it right here in Frankfurt.”
As part of
the investment, Siemens will lease and then expand an additional location in
Offenbach, starting in July 2026. Production will begin in the spring of 2027.
The company plans to gradually transfer preproduction from its main factory in
Frankfurt to Offenbach, six kilometers away. Siemens will also expand its two
plants in Frankfurt, where it will erect another manufacturing facility by the
end of October 2027. These steps are intended to significantly increase
switchgear production capacity. The up to 700 new jobs to be created by the end of
2030 will be distributed across all three locations – from jobs in
administration to manufacturing and logistics.
“This is a
great signal for the Frankfurt-Rhine-Main region,” said Frankfurt mayor Mike
Josef. “Frankfurt and its surroundings have shown yet again that they remain an
attractive location for business and industry. Strengthening industrial
production in the Rhine-Main region is also a welcome development.
Manufacturing is a vital second pillar alongside the region’s strong financial
sector. In a particularly positive development, the spaces that will become
vacant at the main factory will be used to increase switchgear production
capacity while final production will take place in Frankfurt. I’d like to thank
all the participating authorities, companies – in particular, the business
development organizations – and Siemens for their productive
collaboration.”
“Siemens’
new location in Offenbach demonstrates that industry has a future in Germany –
if government, public administration and the business community cooperate
closely and in a spirit of mutual trust,” said Dr. Felix Schwenke, mayor of the
city of Offenbach am Main. “This new location has only become possible because
we in Offenbach – partnering with the chamber of industry and commerce –
have secured spaces for industry and trade in a targeted fashion. I’d like to
thank Siemens for its trust and very concrete collaboration from the start.
These new industrial jobs in a growing future-oriented sector will enable
Offenbach to continue its upward trajectory of the past few years.”
Siemens is
the only company worldwide that produces medium-voltage and high-performance
switchgear systems at a single location – with decades of experience in
development, manufacturing, services, quality assurance, environmental
management and test technology with an accredited test lab. The Frankfurt
switchgear factory currently comprises two plants and employs around 2,800 people
in production, research and development, and automation. The factory is not
only the company’s global center of competence for gas-insulated switchgear; it
is also a pioneer in switchgear that does not rely on the climate-damaging
insulation gas sulfur hexafluoride (SF₆). Instead, the
switchgear’s
fluoride-gas-free solutions use clean air gas comprising natural components
from the surrounding atmosphere. Siemens developed and marketed these solutions
long before the enactment of the related EU directive. As a result, the company
can now supply them to customers rapidly and in large numbers.
This
investment will enable Siemens to strengthen its commitment to Germany as a
business location and to the Made for Germany initiative, whose 134 member
businesses are pledged to sustainably strengthen the power of innovation,
competitiveness and future-readiness. Between 2025 and the end of 2028, these
businesses will jointly invest more than €800 billion in Germany.
Press pictures
Siemens switchgear plant in Frankfurt, Carl-Benz-Strasse
Siemens switchgear plant in Frankfurt, Daimlerstrasse
For this press release
Siemens AG (Berlin and Munich) is a leading technology company focused on industry, infrastructure, mobility, and healthcare. The company’s purpose is to create technology to transform the everyday, for everyone. By combining the real and the digital worlds, Siemens empowers customers to accelerate their digital and sustainability transformations, making factories more efficient, cities more livable, and transportation more sustainable. A leader in industrial AI, Siemens leverages its deep domain know-how to apply AI – including generative AI – to real-world applications, making AI accessible and impactful for customers across diverse industries. Siemens also owns a majority stake in the publicly listed company Siemens Healthineers, a leading global medical technology provider pioneering breakthroughs in healthcare. For everyone. Everywhere. Sustainably. In fiscal 2025, which ended on September 30, 2025, the Siemens Group generated revenue of €78.9 billion and net income of €10.4 billion. As of September 30, 2025, the company employed around 318,000 people worldwide on the basis of continuing operations. Further information is available on the Internet at www.siemens.com.