Siemens expects to win new orders of around £13 billion in the next three fiscal years 2010 until 2012, which will be generated by government stimulus programs already announced around the world. Green technologies are expected to account for 40 percent or approximately £5 billion of this total, which will significantly increase the share of the company’s revenues from its environmental portfolio in the future. Siemens based this forecast on an initial systematic analysis of the largest stimulus programs. “With their programs, governments worldwide are sending the right signal. Against the backdrop of the worst global economic crisis in decades, these government measures are at least partially cushioning, in some cases, sharp declines in private-sector demand. They should also have a stabilizing effect on our business,” said Siemens President and CEO Peter Löscher. “In addition, the government programs will safeguard jobs worldwide. The large portion of the investments in environmental technologies will probably create new green jobs as well. This applies particularly to the green infrastructure giant Siemens,” Löscher added.
To overcome the global economic crisis, stimulus programs of around £1.7 trillion have been announced and, in some cases, already initiated. Roughly one third of this total – or some £600 billion – is slated for investment in infrastructure projects. The remainder is accounted for by tax cuts, for example, and other governmental non-infrastructure related measures. The total volume of planned infrastructure expenditures relevant for Siemens comes to about £130 billion globally. Given the company’s current average market share worldwide, these expenditures can be expected to generate new orders for Siemens of around £13 billion, of which up to £5 billion will likely come from environmental technologies. In fiscal 2008, Siemens’ environmental technologies generated revenue of around £16 billion. The company intends to increase this figure to £21 billion a year by 2011.
In a country-by-country comparison, the shares of the stimulus program that Siemens can address are the largest in the U.S., where they total slightly more than £72 billion. China comes next with a Siemens-relevant share of around £21 billion, followed by Germany with a share of some £4 billion. Major parts of these stimulus programs are earmarked for green technologies. For example, investments in green technologies account for nearly 50 percent in China and for about 60 percent in Germany. “The various governments are strongly focused on sustainable investments. Siemens can help other countries to reach their climate protection targets, particularly in close partnership with local communities,” said Peter Löscher. The UK government has announced a £20 billion fiscal stimulus package through to 2010 and intends to bring forward existing capital spending programs worth £3 billion for housing education, transport and other construction projects. £535 million of that stimulus is ear-marked for growth in low-carbon technologies and capital spending for example on energy-efficient rail projects.
Siemens has strong roots in the majority of its local markets – and has had these, in most cases, for over 100 years. Local value-added, a reputation as a respected and important employer and the social commitment of the company and its local employees make Siemens a trusted and valued partner in regions all around the world. The company has already been involved in helping to build the infrastructures in many countries, now working to revive their economies through additional investments in these areas.
Siemens has more than 18,000 UK-based employees working in more than 100 offices and factories throughout the UK. “We are well established in the UK and have had a presence here for 166 years” said Andreas J Goss, CEO of Siemens plc and Siemens North West Europe Cluster. “Our innovative solutions in the industry, energy and healthcare sectors touch the lives of British citizens every day from energy-efficient lighting to the latest Desiro trains, designed especially for the UK. Siemens is the leading provider of wind power in the UK. Our equipment generates 40 per cent of the UK’s wind power - an area where we anticipate accelerated growth stimulated by changes to the Renewables Obligations Certificate (ROC) system by the UK government.”
Siemens has invested around £26 million in its next generation, energy-efficient Desiro City Train to be launched in London in early July and success on projects such as Thameslink would support high technology jobs in the UK. Siemens is also developing a centre of competence for off-shore grid connection technology in Manchester. “We see the potential for growth in energy-efficient technologies – representing some 500 skilled UK jobs by 2011,” said Goss. “We are strengthening our ongoing commitment to helping this country grow and prosper, and we believe this will be done primarily through sustainable technologies.” Goss continued: “We are excited to represent what we see as a growing area in industry: "sustainable industrialisation”. This has our full support and with continued investment into skills and R&D, we believe it will be a growth area, not only creating more jobs for our company, but also benefiting a sustainable UK supply chain.”
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Siemens AG (Berlin and Munich) is a global powerhouse in electronics and electrical engineering, operating in the industry, energy and healthcare sectors. The company has around 420,000 employees (in continuing operations) working to develop and manufacture products, design and install complex systems and projects, and tailor a wide range of solutions for individual requirements. For over 160 years, Siemens has stood for technical achievements, innovation, quality, reliability and internationality. In fiscal 2008, Siemens had revenue of €77.3 billion and a net income of €5.9 billion (IFRS). Further information is available on the Internet at: www.siemens.com.
Siemens in the UK
Siemens was established in the United Kingdom in 1843 and now employs 18,402 people in the UK. Last year’s revenues were £3.7 billion. As a leading global engineering and technology services company, Siemens provides innovative solutions to help tackle the world’s major challenges, across the key sectors of energy, industry and healthcare. Siemens has offices and factories throughout the UK, with its headquarters in Frimley, Surrey. The company’s global headquarters is in Munich, Germany. For more information, visit www.siemens.co.uk
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