Siemens AG will direct investments in the amount of €2 billion to expand high-tech production.

This funding will be spent on the construction of a new plant in Singapore and the expansion of the existing Chinese production site in Chengdu. In Singapore, the German industrial conglomerate will spend €200 million on the construction of the enterprise. This production site will produce devices for factory automation, for which there is currently a high level of demand in Southeast Asia. The relevant information was reported by Siemens on Thursday, June 15.

Currently, the government of Chancellor Olaf Scholz is making efforts to reduce the level of Germany’s dependence on China. Against this background, Siemens is strengthening its presence in the Chinese industrial space. The company will spend €140 million to expand the Chengdu plant. This plant will produce devices for factory automation. As part of the expansion of the site, 400 new jobs will be created.

Siemens considers the concept of strategic modernization as an activity that can bring benefits. This development concept provides for an increase in the level of efficiency of the software-driven product line. The company also aims to increase the profitability of production.

Siemens, which is also known as a manufacturer of high-speed trains, has doubled its forecast for fiscal year 2023. Revenues and orders in the main divisions of the company show steady growth. Also, by the end of May, Siemens recorded a record number of outstanding orders with a total value of €105 billion.

The company’s chief executive Officer, Roland Bush, in his speech in Singapore, noted that there is currently an increase in demand for digital technologies in all sectors of industry. During a conversation with German journalists, he said that Siemens could raise its medium-term targets for annual revenue growth.

Since the beginning of this year, the company’s share price has shown an increase of approximately 28%.

Preliminary forecasts state that the Siemens Digital Industries division, which specializes in automation devices of production processes that reduce labor costs, will ensure profitability at the level of 23.5% by September this year.

The company also has an intelligent infrastructure division that helps industrial customers reduce carbon dioxide emissions through a combination of hardware and software offerings.

Siemens plans to increase research and development spending by 500 million euros in the near future, including on artificial intelligence technologies. The company also intends to announce additional investments in the USA and Europe.

As we have reported earlier, ChrysCapital Invests $100 Million in Lenskart.