Siemens to invest €1 billion in Germany

Siemens plans to invest around €1 billion in Germany, including around €500 million for a new campus for development and high-tech manufacturing in Erlangen, which will become a global R&D and manufacturing hub and the nucleus of global technology activities for the Industrial Metaverse.

The project is part of a global investment strategy of around €2 billion in 2023 to strengthen growth, innovation and resilience in all regions. Further investments are planned in Europe outside Germany and the USA.

With around 3,500 employees, the current location is already home to a world-class factory for key products in industrial automation and digitalization. Today, production in Erlangen is already highly automated, with humans and robots working side by side. Through this investment, Siemens is now creating a blueprint for the industrial metaverse, a virtual representation of the real world – photorealistic, physics-based and in real time. The targeted use of relevant, physical data and the application of artificial intelligence are creating the latest generation of high-tech manufacturing, which produces more sustainability and can respond flexibly to market changes.

“Siemens is banking on innovation in Germany and launching the next stage of digitalization: we’re laying the foundation for the industrial metaverse in the Nuremberg metropolitan region. Here, on the new campus, we’re combining the real and the digital worlds,” said Roland Busch, President and Chief Executive Officer of Siemens AG. “Together with partners, we’re developing new digital technologies in the metaverse and revolutionizing how we’ll run our production in the future – much more efficiently, flexibly and sustainably.”

New campus combines development and high-tech manufacturing

The campus – which is to be built in the west of Erlangen – will focus on sustainable and future-oriented high-tech manufacturing, related research and development activities, and the opening of the location for an ecosystem of partners from the business and scientific communities. The plan for the location also calls for converting existing facilities and expanding the site.

Before construction work begins, the new buildings for research and development, production and logistics will be planned and simulated in the digital world. They will then be implemented in the real world. In the process, an exact replica is created in the digital world, in which the entire existing factory layout is optimized and later readjusted in the real world by using the industrial metaverse. The Erlangen factory manufactures power electronics components and machine tool controls for the machine building industry, which are key elements of Germany’s economy and industry.

The investment is another important element of Siemens’ strategy to combine the real and the digital worlds. The company is strengthening its Erlangen location as a hub for digital production concepts – for example, through the use of the industrial metaverse and for modern technologies like industrial 3D printing and innovative power electronics. In addition, employees are upgrading their skills through forward-looking work and training concepts (NextWork) not only to prepare themselves for the digital transformation of the working world but also to actively shape it.

Environmentally sustainable location

The facility’s expansion is based on a comprehensive and forward-looking sustainability and energy concept. Its roughly 200,000-square-meter area is being rigorously designed to be a net-zero location that meets the highest sustainability criteria. Plans include an innovative energy infrastructure, green energy supply and energy storage in partnership with the city of Erlangen, and the extensive use of Siemens’ sustainable digital building technology solutions. The new campus in Erlangen will be implemented by Siemens Real Estate – the company’s real estate arm.

Strengthening Germany as an industrial location

Germany is Siemens AG’s home market and one of the world’s most important locations for production, research, development and employment. The technology company employs about 86,000 people in Germany, including around 38,500 in the metropolitan region. As part of its global investment strategy of around €2 billion, Siemens has announced investments in regions such as the U.S., China and Southeast Asia. At the beginning of the week, the company announced its most recent investment project: the construction of new headquarters in Spain with an investment volume of €160 million.