Siemens AG will invest EUR2 billion ($2.91 billion) to expand high-tech manufacturing, including a new plant in Singapore and an expansion at its Chinese plant in Chengdu.
In Singapore, the German industrial conglomerate is spending EUR200 million to build a new plant that will produce factory automation devices to meet rising demand in Southeast Asian markets, Siemens said Thursday. Its digital factory in China will add some 400 jobs through investing EUR140 million alongside a new research and development centre.
Additional plans for Europe and the US will also be announced this year, the company said in a statement. Development spending will go up by an additional EUR500 million.
Siemens is profiting from a strategic revamp toward efficiency-boosting, software-driven product lines with higher profit margins. The company also known for making high-speed trains raised its outlook twice in fiscal 2023 as revenues and orders grew in its main businesses while the company still sat on a record order backlog of EUR105 billion in May.
Its digital industries division, which focuses on labour-saving factory automation devices, is expected to deliver a profit margin of as much as 23.5% in the fiscal year through September. Its smart infrastructure unit also raised guidance. The unit helps industrial customers reduce their carbon footprint with a combination of hardware and software offerings.
