Siemens Energy has unveiled plans to invest $2.3 billion (€2 billion) in expanding and modernizing its global manufacturing network for power transformers and high‑voltage switchgear by 2028, underscoring the company’s ambition to strengthen electricity transmission infrastructure as demand surges worldwide ESG News esg-investing.com World Energy.
Expanding Grid Capacity
The investment will be directed toward new factories and upgrades to existing facilities, with a focus on increasing production efficiency and capacity. Siemens Energy emphasized that the buildout is designed to meet the growing strain on global grids driven by the energy transition, electrification of industries, and renewable integration.
Financial Strength and Targets
The announcement comes as Siemens Energy reported €2.355 billion in profit before special items and €4.663 billion in pre‑tax free cash flow for fiscal 2025, enabling the company to propose a dividend restart. Updated mid‑term targets for 2028 include a 14–16% profit margin before special items and low‑teens annual revenue growth, reflecting confidence in the long‑term profitability of grid infrastructure investments ESG News esg-investing.com.
Strategic Context
Global electricity grids are under mounting pressure as countries accelerate the shift to renewable energy and electrify transport and industry. Siemens Energy’s expansion is positioned as a pivotal investment to support this transition, ensuring reliable transmission and distribution systems that can handle rising demand.
Outlook
By committing $2.3 billion to grid manufacturing, Siemens Energy is reinforcing its role as a critical player in the global energy transition. The buildout is expected to not only enhance supply chain resilience but also provide the backbone for sustainable growth in electricity markets worldwide.
Siemens-Munchen-Perlach-Picture-by-Rufus46
