Siemens to concentrate 60-Hz gas turbine production in Charlotte Initial investment approximately $135 million

Siemens Energy, Inc. - 03.11.2010

Siemens expands its strong presence in the United States by building a new production plant for 60-Hertz gas turbines at its existing facility in Charlotte, North Carolina. The initial investment will be approximately $135 million. Production is slated to start in the fall of 2011. Siemens is pushing ahead with its clearly defined growth strategy in the U.S. With revenues totaling almost EUR16 billion in fiscal 2009 (ended September 30) the U.S. continues to be the most important single-country market for Siemens. With annual power generation amounting to more than 4 billion megawatt-hours (MWh), the U.S. is, by far, the world's largest power market.

"Following construction of the two production plants for wind turbines in Fort Madison and Hutchinson, the decision to expand the Charlotte production hub is further proof of our commitment to the important U.S. market. Siemens has operations and personnel in all 50 states and employs a total work force of approximately 64,000 in the U.S., of which 10,000 work in the Energy Sector. Over the next five years, we expect employment at the Charlotte site to grow to nearly 1,800 people, with more than 1,000 of those positions new to Charlotte," said Peter Löscher, President and CEO of Siemens AG.

"The new plant in the U.S. will be the most advanced gas turbine production plant in North America and set new benchmarks in terms of efficiency, quality and competitiveness. Our many years of experience will help us to establish an optimized turbine production process at the new plant. We'll thus be able to continue supplying our customers with best-in-class gas turbines and also boost our efficiency," said Wolfgang Dehen, CEO of Siemens Energy.

Starting in the fall of 2011, it is anticipated that all Siemens gas turbines for 60-Hertz markets, such as North and South America, Saudi Arabia, South Korea, the Philippines and Japan, will be produced in Charlotte. By producing the 60-Hz gas turbines in the U.S., Siemens will reduce the distance products are shipped to most customers, thus reducing related CO2 emissions The production of 60-Hertz gas turbines at the Hamilton site in Canada will be phased out. This decision does not impact the production of gas turbines for 50-Hertz markets, which remains at the Berlin hub in Germany.

The significance of the U.S. market for Siemens Energy is also reflected by the fact that the Energy Service Division, which provides services for power plants and the oil and gas industry, is headquartered in Orlando. In addition, Siemens power generation and delivery systems provide approximately one-third of the power demand in the U.S.

Charlotte to become a major gas and steam turbine production hub

In addition to production, service and other related functions for 60-Hertz gas turbines (e.g., R&D, supply chain management, etc.) will be bundled primarily in Charlotte, where the company already has a center for steam turbine and generator production and service. This will mean that a large section of Siemens power generating portfolio will be concentrated at one U.S. facility. In Charlotte, Siemens will in the future also produce the 60-Hertz version of the latest-generation H-class gas turbine. Over he last two years Siemens has successfully tested the 50-Hertz counterpart of the SGT-8000H, the world's most ecofriendly gas turbine, under regular operating conditions at the power plant in Irsching, Bavaria. The plant is currently being extended to incorporate a steam turbine, thus making it possible for Siemens to increase the world record in efficiency in combined cycle duty to over 60 percent. The annual carbon dioxide emissions from every new power plant of this design with a capacity of 570 MW are approximately 700,000 tons lower than the average emissions for power generation worldwide. This is equivalent to the emissions of 350,000 automobiles clocking up 15,000 kilometers a year.

Over the past decade Siemens has significantly expanded its U.S. commitment with acquisitions totaling more than $25 billion and established itself as market leader in major business areas. For example, the Healthcare Sector was strengthened by the acquisition of the U.S. lab diagnostics company Dade Behring Holding Inc. The Industry Sector was strengthened by acquisitions such as the U.S. software company UGS Corp. and the water treatment specialist U.S. Filter Corp. Every tenth glass of water consumed in the U.S. is filtered using Siemens technology. Siemens' Mobility Division is also a market leader in advanced streetcars.

The Siemens Energy Sector is the world's leading supplier of a complete spectrum of products, services and solutions for the generation, transmission and distribution of power and for the extraction, conversion and transport of oil and gas. In fiscal 2009 (ended September 30), the Energy Sector had revenues of approximately EUR25.8 billion and received new orders totaling approximately EUR30 billion and posted a profit of EUR3.3 billion. On September 30, 2009, the Energy Sector had a work force of more than 85,100. Further information is available at: www.siemens.com/energy.

« All Fossil & Biomass News