Siemens to invest $2.2b to ramp up global production

ZURICH, June 17 (Reuters): Siemens will spend 2 billion euros ($2.16 billion) on a new global investment plan, the German engineering and technology group said on Thursday, as it gears up to meet increased demand triggered by global stimulus packages.
Siemens will build new factories, research and development centres and training sites around the world, the company said in a statement, as it aims to tackle problems exposed by the Covid pandemic and rising geopolitical tensions.
As part of the investment programme, which will cover announcements made during 2023, Siemens will spend 200 million euros on a new plant for its industrial automation division in Singapore.
"Siemens is experiencing significantly above-market growth. Today we announce an investment strategy to boost future growth, drive innovation and increase resilience," said Siemens Chief Executive Roland Busch in a statement.
Siemens will also increase its research and development spending by 500 million euros this year, the company said on Thursday.
The company, which employs 311,000, is seen as a bellwether for the health of the global industrial economy. In 2022 it increased its annual sales by 16 per cent to 72 billion euros.
"This wave of investments is supported by our record order backlog and reflects our confidence in the future," Busch later told an event in Singapore.
The company has previously said its expects its total addressable market for its products, which range from trains to industrial software, to expand by 7 per cent per year between 2022 to 2027.