Siemens Energy is investing EUR 220 million in expanding its transformer factory in Nuremberg, Germany. The investment will boost production capacity by about 50 percent and generate 350 new jobs, according to a company press release.

Investment Details and Capacity Expansion

The EUR 220 million investment represents a significant expansion of Siemens Energy's manufacturing capabilities at its Nuremberg facility. Due to rising demand, the facility will be expanded by around 16,000 square meters, increasing production capacity by approximately 50 percent. The construction will take place while operations at the factory continue, with the new production areas expected to be available by 2028.

The Free State of Bavaria is supporting the expansion with up to EUR 20 million in technology funding while aiming to sustainably strengthen Nuremberg as a hub for innovation, research, and development. This project follows Siemens Energy’s EUR 90 million investment last year at the same site for a new converter production facility. In total, the company has invested about EUR 1 billion in Germany over the past three years.

In 2024 alone, Siemens Energy created around 1,300 new jobs in Germany, with plans to add up to 1,500 more by the end of 2026.

Market Response Strategy

Siemens Energy states that the expansion aims to meet the growing global demand for large transformers. The company is positioning itself to supply critical technologies needed for the energy transition, including transformers for offshore wind, grid stabilization, and cross-border electricity links. With support from Bavarian funding, the move highlights Siemens Energy's strategy of leveraging long-standing expertise with strategic investments to enhance its role in providing vital grid solutions worldwide.

Facility Location and Operations

The transformer factory, which is undergoing expansion, is located in Nuremberg, Germany. Transformers are located at nearly every node of the power grid, connecting different voltage levels and enabling electricity to be transmitted over long distances.

Commitment to the Energy Transition

Christian Bruch, CEO of Siemens Energy, emphasized the site’s significance: “Siemens Energy has 113 years of experience in transformer manufacturing in Nuremberg, highly qualified employees with the necessary expertise, and strong infrastructure. These are the right conditions to continue delivering key technologies for the energy transition from Germany to the world.”

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