Siemens investment in Germany: €300 million to expand Frankfurt plants and build Offenbach supplier
Siemens investment in Germany: the technology group will spend €300 million to expand manufacturing in Frankfurt and build a new supplier plant in Offenbach, creating 700 jobs by 2030.
Siemens announces €300 million expansion in Germany
On Wednesday, July 1, 2026, Siemens confirmed a new €300 million investment in Germany to expand production capacity for switchgear and related electrification equipment. The company said the move is aimed at meeting sharply rising demand from AI data centers, electrified transport and industrial automation. Siemens framed the investment as a strategic step to strengthen its global supply of key technologies for the energy transition and artificial intelligence infrastructure.
New supplier plant in Offenbach and Frankfurt upgrades
Siemens plans to construct a new supplier factory in Offenbach while enlarging two existing facilities in Frankfurt, the company said. Construction work is scheduled to begin in July 2026, with the Offenbach supplier plant due to start production in spring 2027. The expansions will raise local manufacturing flexibility and the range of product variants produced at the sites.
Plans set timelines and 700 jobs by 2030
The group expects the expansion to create about 700 new positions across the German locations by the year 2030. Siemens provided a clear timeline for the projects, linking ground-breaking in mid-2026 to staggered ramp-up phases through 2027 and beyond. Company statements emphasized workforce development and the need for skilled technicians to support higher-volume, high-complexity production runs.
Production aims at AI data centers and energy switchgear
Siemens said production will focus on next-generation switchgear and other electrical components that it identifies as critical infrastructure for AI data centers and the global energy transition. Executives described a growing market for so-called “AI factories” and hyperscale data facilities that demand enormous, reliable power distribution systems. The new output is intended to serve both cloud and AI customers worldwide as demand for electrification and computing capacity rises.
Leadership changes and strategic framing
The announcement coincides with an internal leadership transition: on July 1, 2026 Peter Körte assumed responsibility for the Smart Infrastructure division, succeeding the retiring Matthias Rebellius. Körte, previously Siemens’ strategy and technology board member, characterized the investment as an “inaugural gift” as he takes the division helm. The company highlighted broader succession planning, noting other senior executives remain central to Siemens’ industrial and software agenda.
Link to Siemens’ global capacity push
The German investment follows earlier moves to expand capacity internationally, including a $165 million investment announced in March 2026 for U.S. facilities to support AI and data center growth. Siemens has in recent years rolled out several major investment initiatives, and the Frankfurt-Offenbach measures are presented as part of that global scaling. Management says the aim is to ensure resilient supply chains for electrical distribution gear across major markets.
Context within Germany-focused initiatives
Siemens’ €300 million commitment reinforces the firm’s wider engagement with German industrial policy and private investment drives. The company referenced the “Made for Germany” initiative launched in summer 2025, in which Siemens joined other firms to promote domestic investment. Siemens also continues work on projects including a Technology Campus in Erlangen and the Siemensstadt Square development in Berlin-Spandau that combine production, R&D and urban uses.
Siemens reported that in fiscal year 2024/25, which ended on 30 September 2025, its group-wide investments totalled €2.9 billion, with nearly a third located in Germany. The firm noted prior commitments such as a 2023 investment program that earmarked €1 billion for Germany and a planned €200 million intelligent factory in Amberg.
The company framed the new spending as a market-driven response to accelerating demand for intelligent electrification across sectors. Executives pointed to double-digit market growth rates for data centers and the need for advanced manufacturing to match technological complexity, scale and energy intensity.
As construction and hiring proceed, Siemens says it will align the Frankfurt and Offenbach expansions with customer demand and supply-chain readiness. The company aims to leverage local know-how, flexible production lines and workforce training to deliver equipment that supports both national industrial objectives and global cloud and AI customers.
The €300 million investment in Germany underscores Siemens’ strategy to deepen manufacturing close to major European technology clusters while coordinating capacity increases across its global footprint.
