Friday, September 22, 2017

Siemens AG to invest $1.3 billion in Russia

Electronics and electrical engineering company Siemens AG will invest a total of $1.3 billion in Russia over the next three years.

President and CEO of Siemens AG Peter Löscher made the announcement at the annual meeting in Moscow of the Foreign Investment Advisory Council chaired by Russian Prime Minister and President-elect Vladimir Putin, PennEnergy.com reports.

Plans for the money include the construction or expansion of locations for production, research and development and services in regions such as Yekaterinburg, Perm, St. Petersburg and Voronezh, which will create close to 4,000 specialist jobs

A large part of the investment, close to $919.9 million, will focus on the future-oriented energy market, with plans calling for approximately $525.6 to be invested in new production facilities for efficient gas turbines and in the expansion of the service business, according to PennEnergy.com.

Additionally, there will be a significant investment in rail technology. The joint venture, established in Yekaterinburg with Russia's Sinara Group in 2010, has already received more than $3.9 billion in orders for the production of advanced freight locomotives and regional trains.

An additional $52.5 million has been invested into building Siemens' research and development center in the future Skolkovo Innovation City, according to PennEnergy.com.

"Our far-reaching investments underscore Russia's great importance as a strategic core market for Siemens," Löscher said, PennEnergy.com reports. "By entering into a technology partnership, we're supporting the country's ambitious modernization plans and placing our close cooperation with our Russian partners on a new, even broader basis."

Siemens has been doing business in Russia for close to 160 years, and has approximately 4,000 employees in the country and activities in more than 30 Russian cities.