Siemens invests 2 billion euros in a new global plan

Siemens is investing 2 billion euros in a new global plan, as announced by the German engineering and technology group on Thursday in response to the increasing demand driven by global challenges, according to the Railway Supply magazine.

In a press release, Siemens stated that it will establish new factories, research centers, and educational institutions worldwide to address the problems identified by the COVID pandemic and the rise in geopolitical tensions.

“Siemens is growing well above the average market level. Today, we are announcing an investment strategy to stimulate future growth, innovation, and resilience,” said Roland Busch, CEO of Siemens.

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The German group also announced on Thursday that its research and development budget for this year will be increased by 500 million euros.

Siemens’ decision, as an industrial giant with 311,000 employees, is considered an indicator of the health of the global industrial sector.

Sales for Siemens are expected to grow by 16% to 72 billion euros in 2022.

“This wave of investment is supported by our record order book and reflects our confidence in the future,” said Roland Busch at an event in Singapore.

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Siemens will continue to invest in the EU and the USA.

Earlier, the German group estimated that the total addressable market for its products, from rolling stock to industrial software, will grow by 7% annually between 2022 and 2027.

This progress is also partially supported by stimulus programs such as inflationary measures, the US infrastructure law, and the Green Deal in the European Union.

In this context, Siemens aims to grow faster than its competitors and increase its market share.

Earlier this year, Siemens announced plans to expand its plants in Germany and the Czech Republic and invest $220 million in a new rolling stock facility in Lexington, USA. On Thursday, the German group stated that it is considering further investments in the USA and Europe.

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