Siemens to invest more than US$500 million in U.S. manufacturing for critical infrastructure in 2023

Rhea-AI Summary

Siemens announces a $150 million investment in a new manufacturing plant in Dallas-Fort Worth to support American data centers and critical infrastructure. The plant will produce electrical equipment to accelerate the growth of data centers and ensure secure operation of critical infrastructure. Siemens also plans to invest $220 million in a rail manufacturing facility in North Carolina, creating a total of around 1,700 jobs in the U.S.

Positive

• Siemens' investment in the new manufacturing plant will support the growth of U.S. data centers, which are expected to grow by around 10% annually through 2030.
• The investment will also enable the secure operation of critical infrastructure.
• Siemens' investment in the rail manufacturing facility in North Carolina will contribute to the expansion of U.S. infrastructure and mobility.
• The total investment in the U.S. this year, including the new manufacturing plant and rail facility, amounts to $510 million and will create 1,700 jobs.
• The new manufacturing plant in Dallas-Fort Worth is expected to start production in 2024 and be fully operational in 2025.
• Siemens' investment is part of its €2 billion global investment strategy to boost growth, innovation, and resilience.

Negative

• None.

• Total U.S. investments to support high-growth markets like data centers, batteries, semiconductors, EV charging and rail transportation
• New US$150 million investment in Dallas-Fort Worth production of critical electrical infrastructure equipment to help power U.S. data centers and accelerate adoption of artificial intelligence (AI)
• Already announced: US$220 million rail manufacturing plant to bolster U.S. infrastructure and mobility
• All investments to create a total of around 1,700 jobs in the U.S.
• Part of €2 billion global investment strategy to boost growth, innovation and resilience

MUNICH, Germany & DALLAS--(BUSINESS WIRE)-- Today, Siemens announced an investment of US$150 million in a new high-tech manufacturing plant in Dallas-Fort Worth to help power American data centers and critical infrastructure. This plant will produce state-of-the-art reliable and efficient electrical equipment. It will enable accelerated growth of U.S. data centers, which is being driven by the exponential adoption of generative AI. It will also ensure secure operation of critical infrastructure. This investment specifically supports long-term customers in the data center space, where demand is expected to grow by around ten percent annually through 2030.

(Photo: Business Wire)

“There’s never been a better time to invest in critical electrical infrastructure and green mobility to support the backbone of America’s economy. The hardware and software we offer – produced through our expanded U.S. manufacturing presence – will ensure that growing industries can meet demand while continuing to make progress in decarbonizing operations,” said Roland Busch, President and CEO of Siemens AG. “With this latest step, Siemens is delivering on its €2 billion global investment strategy for 2023 to boost growth, innovation and resilience.”

New projects create a total of around 1,700 jobs in the U.S.

As part of these investments, Siemens announced a US$220 million investment in a new rail manufacturing facility in Lexington, North Carolina, earlier this year. Construction of this facility is now underway. In addition, the company is investing in two electrical-products manufacturing plants in Grand Prairie, Texas, and Pomona, California. These projects bring the overall investment in the U.S. this year to US$510 million, which will create 1,700 jobs at Siemens as a result.

The new Fort Worth facility and the Grand Prairie and Pomona extensions will meet booming demand for the electrification of critical infrastructure – in other words, data centers, battery plants, semiconductor facilities and EV charging. Production at the new facility in Fort Worth is expected to start in calendar year 2024, gearing up for full operations in 2025. This factory will be built and operated using Siemens advanced manufacturing tools, including digital twin technology and high-tech automation to ensure the highest quality, efficiency and sustainability levels. The Siemens Xcelerator portfolio will be used to capture and analyze data from the shopfloor on production and product performance in real time.

Siemens’ €2 billion global investment strategy to boost growth, innovation and resilience

In June 2023, Siemens announced its global investment strategy in new high-tech factories, innovation labs and education centers to expand leadership in digitalization, automation, electrification and sustainability. As part of this strategy – which totals around €2 billion – Siemens has disclosed investments in regions such as China, Southeast Asia, Europe and the U.S.

This press release is available at:
https://www.siemens.com/us/en/company/press/press-releases/usa/siemens-us-critical-infrastructure-investment-exceeds-500m.html

Siemens AG (Berlin and Munich) is a technology company focused on industry, infrastructure, transport, and healthcare. From more resource-efficient factories, resilient supply chains, and smarter buildings and grids, to cleaner and more comfortable transportation as well as advanced healthcare, the company creates technology with purpose adding real value for customers. By combining the real and the digital worlds, Siemens empowers its customers to transform their industries and markets, helping them to transform the everyday for billions of people. Siemens also owns a majority stake in the publicly listed company Siemens Healthineers, a globally leading medical technology provider shaping the future of healthcare. In addition, Siemens holds a minority stake in Siemens Energy, a global leader in the transmission and generation of electrical power.

In fiscal 2022, which ended on September 30, 2022, the Siemens Group generated revenue of €72.0 billion and net income of €4.4 billion. As of September 30, 2022, the company employed around 311,000 people worldwide. Further information is available on the Internet at www.siemens.com.

Notes and forward-looking statements

This document contains statements related to our future business and financial performance and future events or developments involving Siemens that may constitute forward-looking statements. These statements may be identified by words such as “expect,” “look forward to,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project” or words of similar meaning. We may also make forward-looking statements in other reports, in prospectuses, in presentations, in material delivered to shareholders and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements are based on the current expectations and certain assumptions of Siemens’ management, of which many are beyond Siemens’ control. These are subject to a number of risks, uncertainties and factors, including, but not limited to those described in disclosures, in particular in the chapter Report on expected developments and associated material opportunities and risks in the Combined Management Report of the Siemens Report (siemens.com/siemensreport), and in the Interim Group Management Report of the Half-year Financial Report (provided that it is already available for the current reporting year), which should be read in conjunction with the Combined Management Report. Should one or more of these risks or uncertainties materialize, should decisions, assessments or requirements of regulatory authorities deviate from our expectations, should events of force majeure, such as pandemics, unrest or acts of war, occur or should underlying expectations including future events occur at a later date or not at all or assumptions prove incorrect, actual results, performance or achievements of Siemens may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. Siemens neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.

This document includes – in the applicable financial reporting framework not clearly defined – supplemental financial measures that are or may be alternative performance measures (non-GAAP-measures). These supplemental financial measures should not be viewed in isolation or as alternatives to measures of Siemens’ net assets and financial positions or results of operations as presented in accordance with the applicable financial reporting framework in its Consolidated Financial Statements. Other companies that report or describe similarly titled alternative performance measures may calculate them differently.

Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231103426573/en/

Florian Martens

Phone: +49 162 230-6627; e-mail: florian.martens@siemens.com

Simon Krause

Phone: +49 173 403-9683; e-mail: krause.simon@siemens.com

Annie Satow

Phone: +1 202 316-0219; e-mail: annie.seiple@siemens.com

www.twitter.com/siemens_press

Source: Siemens

FAQ

What is Siemens investing in?

Siemens is investing $150 million in a new manufacturing plant in Dallas-Fort Worth to support data centers and critical infrastructure. They are also investing $220 million in a rail manufacturing facility in North Carolina.

What will the new manufacturing plant produce?

The new manufacturing plant will produce electrical equipment to support the growth of data centers and ensure secure operation of critical infrastructure.

How many jobs will be created by Siemens' investments?

Siemens' investments in the new manufacturing plant and rail facility will create a total of around 1,700 jobs in the U.S.

When will the new manufacturing plant be operational?

The new manufacturing plant in Dallas-Fort Worth is expected to start production in 2024 and be fully operational in 2025.

What is Siemens' global investment strategy?

Siemens' global investment strategy aims to boost growth, innovation, and resilience. It includes investments in new high-tech factories, innovation labs, and education centers.