“Relying on a global presence”
Siemens is investing two billion in new plants
06/15/2023 10:51 am
Siemens wants to increase massively. The company intends to invest two billion euros in expanding its global production capacities. The money is to flow primarily to Asian locations. A new factory is being built in Singapore and a lot is also set to happen in China.
The Siemens Group has announced new investments of two billion euros, primarily for the expansion of its production capacities and research and development in Asia. In central China, the plant in Chengdu will be expanded for 140 million euros and a new high-tech factory will be built in Singapore for 200 million, the group said. Accordingly, 400 jobs will be created at each of the two locations.
In addition to new production capacities, “innovation facilities, training centers and other own locations” are to be created, such as a new research center in Shenzhen, China. “Specifically, the development of motion control systems with digitization and power electronics should be accelerated,” the company explained.
“The Chinese market is strong”
“The investments underpin our strategy of connecting the physical and digital worlds and our focus on diversifying and localizing our business,” said CEO Roland Busch. “We are clearly relying on our strong global presence.” The plant in Chengdu will mainly produce for China, the plant in Singapore for Southeast Asia.
In an interview with the “Handelsblatt” Busch emphasized the importance of China. “The Chinese market is strong and will continue to grow.” No company can afford to do without this attractive market, the CEO told the newspaper. However, Siemens also sees the risk of concentrating too much on one country – hence the plant in Singapore.