The company said the plant will serve as a new global production hub for gas and steam turbines and generators for supply to the U.S. and other 60-hertz markets.
Siemens initial investment in the facility will be $135 million, according to the company. Production is slated to start in fall 2011.
Following construction of the two production plants for wind turbines in Fort Madison and Hutchinson, the decision to expand the Charlotte production hub is further proof of our commitment to the important U.S. market, said Peter Lscher, president and CEO of Siemens AG. Over the next five years, we expect employment at the Charlotte site to grow to nearly 1,800 people, with more than 1,000 of those positions new to Charlotte.
With this move were pushing ahead with our growth strategy in the U.S., which is our most important single-country market. Over the last 10 years weve made acquisitions in the U.S. totaling more than $25 billion.
The Worlds Most Important Power Market
Siemens has operations and personnel in all 50 states and employs a total work force of approximately 64,000 in the United States, of which 10,000 work in the energy sector, according to the company. In the future, all Siemens gas turbines for 60-hertz markets, such as North and South America, will be produced at the new Charlotte facility, the company said.
The new plant will be the most advanced gas turbine production site in North America and set new benchmarks in terms of quality, productivity and competitiveness in what is, by far, the worlds most important power market, said Wolfgang Dehen, CEO of Siemens Energy. By producing all 60-hertz gas turbines in the U.S., well also reduce the distance products have to be shipped to most customers, thus reducing related CO2 emissions.
Siemens said it will phase out production of 60-hertz gas turbines at its Hamilton, Ontario, site. The decision does not impact the production of gas turbines for 50-hertz markets, which remains at the Berlin hub in Germany, according to the company.