Siemens plans to invest $2.2bn to boost global production

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Siemens has announced plans to spend $2.16bn on a new global investment plan.

The plan comes in response to increased levels of demand driven by global stimulus packages, according to the German engineering and technology group.

Siemens said that it will build new factories, research and development centres and training sites around the world, and it aims to tackle problems that have become more apparent due to the impact of the COVID pandemic and rising geopolitical tensions.

As part of the investment programme, which will cover announcements made during 2023, Siemens will spend upwards of $200m on a new plant for its industrial automation division in Singapore.

According to Siemens’ Chief Executive Roland Busch, the company will also increase its research and development spending by around $500m this year.

Employing over 300,000 people Siemens increased its annual sales by 16% last year. It expects its total addressable market for its products, which range from trains to industrial software, to expand by 7% per year between 2022 to 2027.

That increase in demand has been helped by stimulus programmes, such as the Inflation Reduction Act in the United States and Europe's Green Deal.