Siemens will invest EUR 2 billion for a new global plan, the German engineering and technology group announced Thursday, as it prepares to respond to increased demand triggered by global stimulus packages.
In a press release, Siemens said it will build new plants, research and development centres and training facilities around the world, with the aim of addressing problems highlighted by the COVID pandemic and rising geopolitical tensions.
“Siemens is growing significantly above the market average. Today we are announcing an investment strategy to drive future growth, innovation and improve resilience,” said Siemens CEO Roland Busch. The German group also announced on Thursday that its research and development budget will be increased by EUR 500 million this year.
The decisions taken by Siemens, an industrial giant with 311,000 employees, are seen as an indicator of the health of the global industrial sector. In 2022, Siemens’ sales are expected to rise 16% to EUR 72 billion. “This wave of investment is supported by our record order book and reflects our confidence in the future,” Roland Busch said at an event in Singapore.
Siemens to continue investing in EU and US
Earlier, the German group estimated that the total addressable market for its products, which range from rolling stock to industrial software, will grow by 7% a year between 2022 and 2027. This advance is also supported in part by stimulus programs such as the Inflation Reduction Act in the US and the Green Deal in the European Union. In this context, Siemens wants to grow faster than rivals and increase its market share, Roland Busch said last month.
Siemens announced plans earlier this year to expand plants in Germany and the Czech Republic and invest USD 220 million in a new rolling stock plant in Lexington, US. On Thursday, the German group said it was considering further investments in the US and Europe.
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