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Press Release15 June 2023Siemens AGMunich/Singapore
Siemens presents €2 billion investment strategy to boost future growth, innovation and resilience including around €200 million for a high-tech factory in Singapore
New high-tech factory in Singapore
MoU signing ceremony by Lim Tse Yong, SVP & Head of EDB, Thai-Lai Pham, CEO of Siemens ASEAN, and Leow Thiam Seng, Group Director of JTC Corporation. Witnessed by Jacqueline Poh, MD of EDB, Roland Busch, CEO of Siemens AG, and German Ambassador to Singapore, Dr. Norbert Riedel
Mr. Cedrik Neike and Dr. Roland Busch at press conference
“Our
technologies address secular growth trends where our customers need our support
to become more competitive, resilient and sustainable. Siemens is experiencing
significantly above-market growth. Today we announce an investment strategy to
boost future growth, drive innovation and increase resilience,” said Roland
Busch, President and Chief Executive Officer of Siemens AG.
“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.”
In addition,
there is an expected increase of around €0.5 billion in research and
development (R&D), such as artificial intelligence and the industrial
metaverse, in fiscal year 2023 versus prior year. This R&D is focused on strengthening
Siemens’ leading position in core technologies including simulation, digital
twins, artificial intelligence or power electronics, as well as supporting the
development of the Siemens Xcelerator open digital business platform. The
company recently announced a partnership with Microsoft to speed up code
generation for industry automation by using ChatGPT. With NVIDIA, Siemens is
working to build the industrial metaverse to improve design, planning, production
and operation of factories and infrastructures.
New and
additional capacities in Southeast Asia
To meet growing demand in Southeast Asia, Siemens today announced an entirely new high-tech factory in Singapore, which will be developed using Siemens' own leading digital twin and innovative, intelligent hardware technologies. Investment in the factory will be around €200 million. The plant will set a new standard for connectivity to showcase the possibilities of digitalization, as well as incorporating highly-automated manufacturing processes. The investment will create over 400 jobs.
To meet growing demand in Southeast Asia, Siemens today announced an entirely new high-tech factory in Singapore, which will be developed using Siemens' own leading digital twin and innovative, intelligent hardware technologies. Investment in the factory will be around €200 million. The plant will set a new standard for connectivity to showcase the possibilities of digitalization, as well as incorporating highly-automated manufacturing processes. The investment will create over 400 jobs.
“Siemens’ new high-tech factory in Singapore will leverage our trusted hub status and strong advanced manufacturing capabilities to meet rising demand across Southeast Asia’s high-growth markets. Manufacturing remains a key pillar of Singapore’s economy and we welcome Siemens’ collaborations with our local ecosystem to better serve customers in the region through the use of new digital and automation technologies. We look forward to deepening our partnership with Siemens and creating good jobs for Singaporeans in the process,” said Png Cheong Boon, Chairman of the Singapore Economic Development Board (EDB).
All-regions strategy
with wave of global investments
As part of its investment strategy and fast-growing business in China, Siemens will also expand its digital factory in Chengdu to serve the local growth opportunities in China for China, investing €140 million (RMB 1.1bn) and creating 400 new jobs. Many of Siemens’ Chinese customers are early adopters of new technologies especially in digitalization and high-tech manufacturing. This is why Siemens also announced the investment in a new digital R&D Innovation Center in Shenzhen to speed up development of motion control systems with digitalization and power electronics technology. The Siemens Xcelerator open digital business platform was launched in China in November 2022.
As part of its investment strategy and fast-growing business in China, Siemens will also expand its digital factory in Chengdu to serve the local growth opportunities in China for China, investing €140 million (RMB 1.1bn) and creating 400 new jobs. Many of Siemens’ Chinese customers are early adopters of new technologies especially in digitalization and high-tech manufacturing. This is why Siemens also announced the investment in a new digital R&D Innovation Center in Shenzhen to speed up development of motion control systems with digitalization and power electronics technology. The Siemens Xcelerator open digital business platform was launched in China in November 2022.
Series of
announcements
Earlier this year, Siemens committed to expand production in Trutnov, Czech Republic, to enhance capacity at its WEF Global Lighthouse Factory in Amberg, Germany. Moreover, Siemens invests €30 million to expand its switchgear plant in Frankfurt-Fechenheim, Germany, while Siemens Mobility recently announced spending $220 million to build a new rolling stock factory in Lexington, North Carolina, to meet growing demand for passenger trains in the United States. The plant will create more than 500 jobs by 2028.
Earlier this year, Siemens committed to expand production in Trutnov, Czech Republic, to enhance capacity at its WEF Global Lighthouse Factory in Amberg, Germany. Moreover, Siemens invests €30 million to expand its switchgear plant in Frankfurt-Fechenheim, Germany, while Siemens Mobility recently announced spending $220 million to build a new rolling stock factory in Lexington, North Carolina, to meet growing demand for passenger trains in the United States. The plant will create more than 500 jobs by 2028.
The planned €2 billion investments and expected
increase of around €0.5 billion in research and development include Siemens
Healthineers.
115 years in Singapore
The investment in Singapore will create jobs within several functions, such as advanced manufacturing, supply chain management, quality management, finance and others. Siemens set up its first technical bureau in Singapore in 1908, the first German industrial company to do so, and celebrates its 115th anniversary in 2023. Siemens currently employs around 1,200 people in Singapore.
The investment in Singapore will create jobs within several functions, such as advanced manufacturing, supply chain management, quality management, finance and others. Siemens set up its first technical bureau in Singapore in 1908, the first German industrial company to do so, and celebrates its 115th anniversary in 2023. Siemens currently employs around 1,200 people in Singapore.
Note to editors
1) Siemens will commemorate its 115th anniversary in Singapore with a gala dinner on 15 June 2023, with Mr Heng Swee Keat, Deputy Prime Minister of Singapore and Coordinating Minister for Economic Policies, as the Guest-of-Honor.
2) Siemens has focused on developing its business in all regions for many years, with the goal to establish value chains as close to customers as possible and establishing an ecosystem of partners. This successful global expansion is reflected in the company’s regional sales: In fiscal 2022, 47 percent of sales of Siemens are attributable to Europe, the Middle East and Africa (EMEA), 29 percent to North and South America, and 25 percent to Asia/Australia. Earlier this fiscal year, Siemens reported a record order backlog of €105 billion and raised its guidance for the second time this year. 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.
2) Siemens has focused on developing its business in all regions for many years, with the goal to establish value chains as close to customers as possible and establishing an ecosystem of partners. This successful global expansion is reflected in the company’s regional sales: In fiscal 2022, 47 percent of sales of Siemens are attributable to Europe, the Middle East and Africa (EMEA), 29 percent to North and South America, and 25 percent to Asia/Australia. Earlier this fiscal year, Siemens reported a record order backlog of €105 billion and raised its guidance for the second time this year. 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.
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Siemens AG (Berlin and Munich) is a technology company focused on industry, infrastructure, transport, and healthcare. From more resource-efficient factories, resilient supply chains, and smarter buildings and grids, to cleaner and more comfortable transportation as well as advanced healthcare, the company creates technology with purpose adding real value for customers. By combining the real and the digital worlds, Siemens empowers its customers to transform their industries and markets, helping them to transform the everyday for billions of people. Siemens also owns a majority stake in the publicly listed company Siemens Healthineers, a globally leading medical technology provider shaping the future of healthcare. In addition, Siemens holds a minority stake in Siemens Energy, a global leader in the transmission and generation of electrical power.
In fiscal 2022, which ended on September 30, 2022, the Siemens Group generated revenue of €72.0 billion and net income of €4.4 billion. As of September 30, 2022, the company had around 311,000 employees worldwide. Further information is available on the Internet at www.siemens.com.
In fiscal 2022, which ended on September 30, 2022, the Siemens Group generated revenue of €72.0 billion and net income of €4.4 billion. As of September 30, 2022, the company had around 311,000 employees worldwide. Further information is available on the Internet at www.siemens.com.
Notes and forward-looking statements
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Reference Number: SGPR2023061553EN