Siemens Energy is set to embark on an ambitious expansion plan, aiming to hire approximately 10,000 new staff over the next six years. This initiative is part of a EUR1.2 billion ($1.3 billion) investment to enhance its grid technologies business, capitalizing on the burgeoning electricity market.
Tim Holt, head of Siemens Energy’s grid technologies division, revealed in an interview with the Financial Times that the company plans to build new factories and expand its manufacturing capabilities across Europe, the U.S., and Asia. “We see this huge boom coming,” Holt stated, emphasizing the anticipated surge in demand for electricity, driven by the growth of renewable projects and the need to replace aging infrastructure.
The impact of this announcement was immediately felt in the financial markets, with Siemens Energy’s shares on the Frankfurt Stock Exchange rising by 4% on Tuesday. The company’s stock has soared by 109% year-to-date, buoyed by its strategic initiatives to rejuvenate its wind power business after enduring four consecutive years of losses.
The expansion plan will result in a significant growth of the grid technologies unit’s workforce, increasing by two-thirds. The 10,000 new employees will be distributed globally, with around 40% in Europe, 20% in the U.S., 20% in India, and the remaining positions in other parts of Asia and Latin America.
Holt highlighted the robust growth in the grid technologies unit, noting that orders have more than doubled in recent years, from EUR7 billion in 2021 to EUR15 billion in 2023. So far, in 2024 alone, the unit has received EUR12 billion in orders, underscoring the strong market demand.
Currently, Siemens Energy ranks as the world’s second-largest grid infrastructure equipment manufacturer, trailing only behind Japan’s Hitachi. Since its separation from the German conglomerate Siemens in July 2020, Siemens Energy has been headquartered in Munich and employs around 99,000 staff across 90 countries.
In addition to its grid technologies expansion, Siemens Energy has outlined a strategic overhaul of its troubled wind power subsidiary, Siemens Gamesa. In May, the company announced plans to cut 4,100 jobs and replace its CEO, following the revelation of manufacturing defects in its 4.X and 5.X turbines. This restructuring aims to stabilize and revitalize the subsidiary, positioning it for future growth.