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Thursday, June 25, 2009

Green Investor News - Siemens AG (NYSE: SI) CEO Loscher Sees Green Tech Driving A New Industrialization

Green Investor News - Siemens AG (NYSE: SI) CEO Loscher Sees Green Tech Driving A New Industrialization
Loscher: "Renewable energy and more efficient products will drive future economic growth"

NEW YORK, June 24,2009 -- In prepared remarks today at the U.S. Chamber of Commerce, Siemens AG (NYSE: SI) President and CEO Peter Loscher detailed the steps Siemens has been taking to handle the current economic crisis and to reorganize the company to be better positioned for what it sees as a "paradigm shift in the global economy" towards sustainability and green technologies. In the past two years, Siemens has changed its organization to become more sustainable over the longer-term. Loscher noted, "Growth and jobs in the future will increasingly come from these technologies. More industrialization and more growth will arise from the current crisis. And the color of this industrialization will be green." Loscher also underscored the value of free trade as being essential for sustainable growth.
According to Loscher, even in the midst of the current downturn, companies should not lose sight of the broader trends that will have an even greater impact on the future: "I'm talking about climate change, demographic change, urbanization and globalization. These are megatrends that have remained constant, even as Wall Street firms collapsed," Loscher said. With its reorganization into three Sectors - Industry, Energy and Healthcare - Siemens today is reflecting its rigorous focus on the Megatrends of healthcare, energy efficiency and environmental protection. Importantly, the major reorganization has made the company more transparent, less complex, and faster.

Loscher refused to accept that action to solve collective challenges such as climate change will slow down in the economic downturn: "The opposite is true. Our view at Siemens is that more industrialization and more growth will arise from the current crisis. And the color of this industrialization will be green." As an example, Loscher mentioned energy efficient technology which will become a $3 trillion market by 2010 - amounting to more than one quarter of the current U.S. GDP. Global demand for renewable sources of energy and more efficient products will drive future economic growth.

In the U.S., the Obama Administration has called for a quarter of its energy to come from renewable sources by 2020. The stimulus programs call for $8 billion to be invested in high speed trains and more than $4 billion to be invested in smart grid technologies - both areas where Siemens has a strong position. Shifts are also being seen in labor: "By one estimate, there are 8.5 million jobs in energy and renewable energy industries in the U.S. already. And that could jump to 40 million jobs by 2030. We at Siemens believe sustainable technologies will become the basis for robust long-term growth for companies that invest now and do not wait until the economy rebounds."

Two days ago, Siemens announced it expects around $21 billion in new orders from stimulus programs worldwide over the next three fiscal years. Green technologies are expected to account for about 40 percent of this total. In fiscal 2008, Siemens' environmental technologies generated revenue of around $26 billion, and "we are bullish about the future of our green technology portfolio," Loscher added. He expects revenue from the company's environmental technology to grow 10 percent annually, reaching the $35 billion mark by 2011. Since 2002, Siemens helped reduce its customers' CO2 output by an amount roughly equivalent to the combined CO2 emissions of New York, Tokyo and Berlin.

In the U.S., the majority of the solutions the Obama Administration say are needed to create a "Clean Energy Economy" stand ready to be implemented. For example, Loscher highlighted the growth potential of renewable energy from wind, a market which Siemens entered five years ago. Siemens has been making significant investments in the U.S. market including a wind turbine blade manufacturing facility the company opened in 2007 in Fort Madison, Iowa, and where expanded production in 2008 has resulted in nearly 400 people working there. This year, Siemens opened a facility in Elgin, Illinois, which will manufacture wind turbine gears. That plant employs about 350 people. Last month, Siemens also announced a $50 million investment to manufacture wind turbine housings in Hutchinson, Kansas. By the end of next year, 400 people will be working green collar jobs in this 300,000-square-foot facility.

Siemens AG (NYSE: SI) is a global powerhouse in electronics and electrical engineering, and operates in the industry, energy and healthcare sectors. For more than 160 years, Siemens has built a reputation for leading-edge innovation and the quality of its products, services and solutions. With 420,000 employees in 190 countries, Siemens reported worldwide sales of $116.6 billion in fiscal 2008. With its U.S. corporate headquarters in New York City, Siemens in the USA reported sales of $22.4 billion and employs approximately 69,000 people throughout all 50 states and Puerto Rico. For more information on Siemens in the United States, visit

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1 comment:

Anonymous said...

I think all the large engineering companies are staring at enormous opportunities from the renewable and alternative energy revolution.

Energy is one of the most capital intensive industries, and most everything about energy is engineering - if not heavy engineering such as mechanical or electrical at least chemical engineering. So, combine the two - engineering skills and high capital requirement - and what do you get? Large engineering companies.

NS @ Alternative Energy Profits -