German industrial conglomerate Siemens is investing two billion euros (CZK 47.6 billion) in a global production increase. It is preparing for increased demand caused by global stimulus packages. The company, which earlier announced plans to expand its capacity in the Czech Republic, said in a statement today.
Siemens will build new factories, research and development centres and training centres around the world. The aim, it said, is to address the problems revealed by the covid-19 pandemic and rising geopolitical tensions. As part of the investment programme, which will cover announcements made during 2023, Siemens will also spend €200 million on a new plant for its industrial automation division in Singapore.
“Siemens is experiencing significantly higher growth than the rest of the market. Today we are announcing an investment strategy that will support future growth, drive innovation and increase resilience,” said Siemens CEO Roland Busch.
Siemens will also increase R&D spending by €500 million this year. The company, which employs about 311,000 people, is seen as a barometer of the health of the global industrial economy, according to Reuters. Last year, the company increased sales by 16 percent to 72 billion euros. “This wave of investment is supported by our record backlog of orders and reflects our confidence in the future,” Busch said later at a meeting in Singapore.
Rivals and pandemic
Siemens plans to grow faster than its rivals, which include Johnson Controls, Alstom, Schneider Electric and ABB. It also wants to increase market share, Busch told analysts last month.
The investment programme could also be a response to the global covid-19 pandemic, which has disrupted supply chains and made shipping products and components more expensive, according to Reuters. Earlier this year, the company announced expansion plans for plants in Germany and the Czech Republic and also invested $220 million in a new rolling stock factory in Lexington, United States. Additional investments in the United States and Europe are also planned.