Siemens to invest 30 million euros in construction of two new production buildings at its switchgear factory in Berlin

Erlangen, Germany - Siemens has commenced with the construction of two new production buildings at its switchgear factory in Berlin. The company is investing approximately 30 million euros in the two new buildings as part of the modernization program announced by Siemens a year ago to convert the facility into one of the most advanced factories of its kind by 2015.

Completion of the two production buildings in Berlin is scheduled for 2012 and 2013, respectively, In one of the buildings the focus will be on the production of gas-insulated high voltage switchgear and in the other on the production of high-voltage circuit-breakers. The current production lines will be optimized in such a way that the efficiency of production in the new buildings will be enhanced by the shorter distances involved. That was not possible in the buildings used until now, which are as much as 90 years old. “Modernization of the switchgear factory in Berlin with the associated increase in productivity is necessary to ensure that the location prevails in the face of fierce global competition,” said Udo Niehage, CEO of the Power Transmission Division of Siemens Energy.

Other measures within the modernization program cover the enhancement of other production lines in existing buildings and restructuring of the entire production processes and logistics to produce a “factory of short distances”. The switchgear factory as an important part of the global manufacturing network is intended to provide maximized-efficiency production and will serve as a research and development center for high- and medium-voltage equipment. The products manufactured there in the future primarily for the European market will be deployed, for example, in high-voltage networks and power plants.

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The Siemens Energy Sector is the world’s leading supplier of a complete spectrum of products, services and solutions for power generation in thermal power plants and using renewables, power transmission in grids and for the extraction, conversion and transport of oil and gas. In fiscal 2010 (ended September 30), the Energy Sector had revenues of approximately EUR25.5 billion and received new orders totaling more than EUR30.1 billion and posted a profit of more than EUR3.3 billion. On September 30, 2010, the Energy Sector had a work force of more than 88,000. Further information is available at: http://www.siemens.com/energy

Reference Number: EPT201111008e