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Hongfeida Automation
Siemens tackles structural market changes and strengthens global competitiveness
Source: | Author:pmo89cafb | Published time: 2017-11-23 | 3517 Views | Share:
Munich, 2017-Nov-16

Structural changes in markets for Power and Gas Division and Process Industries and Drives Division make consolidation of global setup necessary
Reduction of about 6,900 jobs worldwide, half of them in Germany
Increased investments in future growth markets offer opportunities



The situation in the commodity industry, in particular, where customers' willingness to invest remains at a low level, is especially problematic for PD. In addition, competition is intensifying substantially due to the arrival of low-cost producers. Whether in mining, steel production or shipbuilding, demand for large electrical motors and generators has fallen considerably due a lack of capacity increases by process industry customers. A recovery in these fields is not expected in the foreseeable future. This situation has resulted in substantial overcapacities in the existing manufacturing landscape for these technologies. For this reason, further adjustments are necessary here too. These adjustments will impact just over 760 jobs in Germany. Due to insufficient capacity utilization and a negative business outlook, the focus here is on the Berlin generator factory, whose manufacturing capacities will be bundled at PG facilities in Mülheim and in Erfurt. The elimination of around 570 jobs in Berlin is planned in connection with this measure. Nevertheless, plans do not call for the closure of the Berlin location. Instead, jobs will remain in Berlin, particularly in the areas of research and development, engineering, service and sales.