On Thursday, Siemens (SIEGn.DE) announced a new global investment plan of 2 billion euros ($2.16 billion) to meet global stimulus package demand.
Siemens will create additional factories, research and development centers, and training sites worldwide to address COVID-19 and geopolitical tensions, the company said.
Siemens will spend 200 million euros on a new industrial automation unit in Singapore as part of the investment program, which covers 2023 announcements.
Siemens has above-average growth. Siemens CEO Roland Busch announced an investment strategy to promote growth, innovation, and resilience. Siemens announced Thursday that it will invest 500 million euros more in R&D this year.
The 311,000-employee firm is a global industrial economy indicator. Sales rose 16% to 72 billion euros in 2022.
“This wave of investments is supported by our record order backlog and reflects our confidence in the future,” Busch said in Singapore.
From 2022 through 2027, the business forecasts its total addressable market for trains and industrial software to grow by 7% per year.
The $369 billion Inflation Reduction Act and the EU’s 245 billion euro Green Deal Industrial Plan will boost market size from 500 billion euros to over 700 billion euros.
Last month, Chief Executive Busch told analysts that Siemens intends to develop faster than Johnson Controls (JCI.N), Alstom (ALSO.PA), Schneider Electric (SCHN.PA), and ABB (ABBN.S).
The global COVID-19 pandemic clogged supply networks and raised transportation costs, prompting the investment initiative.
This year, the company announced development ambitions for Germany and the Czech Republic and committed $220 million to a new rolling stock manufacturer in Lexington, Kentucky. On Thursday, the business announced more US and European financing.
