Siemens Industry Sector focuses its growth agenda on industrial customers

Industrial software, vertical expertise and service as central levers

Hannover/Erlangen, Germany, With the planned reorganization of Siemens AG, the Industry Sector will systematically focus on industrial customers. The Sector intends to strengthen its vertical market and service business and further expand its leading role in industrial software. "Software for industrial processes, in-depth vertical expertise and technology-based service are crucial to increasing our customer’s productivity and are also important factors driving the growth of our own business. We will continue to put all our efforts into developing our industrial activities in these areas so we can expand our market share" said Siegfried Russwurm, CEO of the Industry Sector, at the Hannover Messe. The planned reorientation of business activities scheduled on October 1, 2011, will be an important step toward more fully leveraging the potential inherent in the service business and in strong-growth vertical markets such as automotive manufacturing, mechanical engineering and the chemical industry.

The global manufacturing and process industries’ market relevant to Siemens is expected to grow to well over 200 billion euros by 2016. Average market growth during this period will be an estimated five percent annually. Due to climbing energy prices and stricter requirements for environmental protection which are affecting their production costs, companies in those industries are seeking to increase productivity and efficiency, in particular with regard to energy consumption. At the same time, development times are decreasing even though products are becoming increasingly complex and the resulting data volumes during development are growing significantly.

Under these circumstances, as Russwurm points out, the focus is increasingly on the vertical expertise of industry suppliers. "We are the only supplier able to cut our customers time-to-market for certain products in half by using software and automation technology, while significantly reducing the costs associated with energy or waste water for a manufacturing company. With our new structure, we intend to offer our bundled expertise from a clearly defined organization, so that in the marketplace we can even better exploit the advantages we offer over the competition"

According to Russwurm, by optimizing sales responsibilities in specific vertical businesses, Siemens can take advantage of the growth potentials across all technologies and at all levels of the value-added chain. All previous vertical market responsibility and the associated businesses of the Industry Solutions Division will be integrated with the product and solutions business of the Industry Automation and Drive Technologies Divisions; this includes verticals like ’Marine,’ ’Pulp&Paper’ and ’Water’ among others. The Industry Sector plans to strengthen the role of persons responsible for vertical markets and to enable them to adjust the product, system, and solutions portfolio for specific verticals to the requirements of individual customers.

At the same time, the service activities of the industry business will be merged into a separate Customer Service Division with around 14,000 employees worldwide. This division will assume responsibility for carrying out all the service business activities for the Industry Sector. It will be closely linked to the specific vertical market activities and exploit the synergies of IT-based service platforms. To better fulfill the specific requirements posed by large-scale plant construction, the Metals Technologies Business Unit will be organized as a business unit that is directly Sector-led. Unlike the other units, Metals Technologies also acts as a general contractor for the construction of entire production plants in the iron, steel and aluminum industries.

The Siemens Industry Sector (Erlangen, Germany) is the worldwide leading supplier of environmentally friendly production, transportation, building and lighting technologies. With integrated automation technologies and comprehensive industry-specific solutions, Siemens increases the productivity, efficiency and flexibility of its customers in the fields of industry and infrastructure. The Sector consists of six divisions: Building Technologies, Drive Technologies, Industry Automation, Industry Solutions, Mobility and Osram. With around 204,000 employees worldwide (September 30), Siemens Industry achieved in fiscal year 2010 total sales of approximately €34.9 billion. http://www.siemens.com/industry

Reference Number: I201102040e