Siemens expands China business

BERLIN -- German industrial giant Siemens will invest 2 billion euros ($2.18 billion) worldwide in 2023 to build and expand its manufacturing capacities, including 140 million euros in Southwest China Sichuan province alone, the company said on Thursday.

Siemens plans to expand its digital factory in Chengdu, the capital of Sichuan province, creating 400 new jobs. The expansion is part of the strategy to "serve the local growth opportunities in China for China," according to the company.

Siemens did not disclose sales figures of its core Digital Industries division in China. According to the German newspaper Handelsblatt, they are estimated at well over 2 billion euros, and are set to double by 2025.

"Many of Siemens' Chinese customers are early adopters of new technologies especially in digitalization and high-tech manufacturing," the company said in its statement.

In 2022, total sales of Siemens in China grew to 9.6 billion euros, up 16 percent from the previous year, according to company figures.

Siemens will also invest in a new digital research and development innovation center in Shenzhen in South China's Guangdong province to "speed up" the development of motion control systems with digitalization and power electronics technology.

Roland Busch, president and chief executive officer of Siemens AG, emphasized the importance of the company's business in China.

"The Chinese market is strong and will continue to grow," he told Handelsblatt on Thursday. No company could afford to miss out on these opportunities, he said.

As part of its investment campaign, Siemens on Thursday also announced plans to build a new high-tech factory in Singapore at a cost of 200 million euros to meet growing demand in Southeast Asia.