26 Jan 2008

Siemens announces £1.4 million investment and organisational changes at its Power Transmission and Distribution business

Successful and efficient operations at Hebburn, Monkton and Manchester are key to profitable growth

United Kingdom, 2006-Apr-10

Siemens Power Transmission and Distribution (PTD) will invest £1.4 million at its Hebburn, South Tyneside, factory enabling it to become a worldwide centre of manufacturing for a range of medium and high voltage switchgear, equipment used in electricity distribution.

This investment is in response to increasing demand from customers who build and refurbish the UK’s electricity distribution infrastructure and require a broader range of switchgear products. The £1.4 million will be spent on adapting production lines at Hebburn, new tooling and additional employee training.

As part of the integration of VA TECH (acquired by Siemens in July 2005), and Siemens PTD, Siemens has identified some duplication of activities and therefore also announces today the start of a consultation process with employees, their representatives and trade unions, expected to last until mid-May. Out of a total workforce of approximately 1,000, it is anticipated that up to 40 jobs are likely to be made redundant with any reduction shared across the three sites. The Siemens PTD employees affected are based in Manchester and at Hebburn and Monkton, in the North East. Job losses will be kept to an absolute minimum by redeploying affected staff to other parts of Siemens wherever possible.

Ron Smith, Managing Director of Siemens PTD UK, said: “I regret that some employees might lose their jobs, but I believe this is the only way to secure the long term future of our business. We operate in a fiercely competitive marketplace and our success depends upon profitable growth. We are consulting with employees and their representatives and those affected will be offered the benefits of an outplacement service on site and all our support to find alternative employment."

About Siemens Power Transmission and Distribution

The Siemens Power Transmission and Distribution Group (PTD), headquartered in Erlangen, Germany, is one of the leading global players in its market sector. As a product supplier, system integrator, solution designer and service provider, Siemens PTD ensures - for utilities and industry alike - the efficient and reliable transmission of electrical energy from the power plant to the consumer. With a worldwide workforce of about 25,850 and operations in nearly 90 countries, PTD had sales of 4.3 billion euros in fiscal 2005 (ended September 30).

About Siemens in the UK

Siemens was established in the United Kingdom 162 years ago. The company employs 21,122 people in the UK, including about 5,000 in the manufacturing sector. Last year’s revenues were £3 billion, including exports of £500 million.

Siemens provides innovative, high-quality services and solutions to customers in a diverse range of industry sectors, including power, automation and control, information and communication, medical, transportation, lighting, and household.

Siemens has offices and factories throughout the UK, with its headquarters in Bracknell, Berkshire. The company’s global headquarters is in Munich, Germany.

Ms. Nicola Prior
PR Consultant to Siemens PTD

Further information

Tel: 0113 266 1526 or 07785 560250

Ms. Anne Keogh
Media Relations Manager, Siemens plc

Tel: 01344 396312

About Siemens