Siemens invests €300m in Germany to expand switchgear production

Key highlights
  • Siemens will invest €300 million to expand production of high-efficiency power distribution systems and switchgear.
  • The investment covers a new supplier facility in Offenbach and expansions at two Frankfurt plants; construction starts July 2026 and Offenbach production begins spring 2027.
  • An additional manufacturing facility in Frankfurt will be erected by the end of October 2027 to increase capacity.
  • The programme is expected to create 700 new jobs across the three locations by the end of 2030.

Investment and timeline

Siemens will invest €300 million to expand production of key electrical switchgear and power distribution systems. Construction begins in July 2026; a leased supplier facility in Offenbach will start production in spring 2027. Preproduction will be gradually transferred from the main Frankfurt factory to the Offenbach site, and an additional manufacturing facility in Frankfurt will be completed by the end of October 2027.

Capacity, technology and workforce

The expansion aims to secure global supply of medium‑voltage and high‑performance switchgear. Frankfurt’s switchgear factory currently comprises two plants and employs around 2,800 staff. Siemens manufactures both medium‑voltage and high‑performance switchgear at the site and offers SF6‑free solutions that use clean air. The project is expected to create 700 new jobs across all three locations by the end of 2030.

Market drivers and performance

Demand is driven by data centers, AI, e‑mobility and the electrification of factories. Siemens Smart Infrastructure booked record data center orders of €1.9 billion in Q2 2026, and H1 2026 revenue from these technologies rose more than 45% to €1.8 billion. Siemens also announced a US factory investment of US$165 million in March 2026 to expand capacity for AI and data centers.

Regional impact

Local authorities in Frankfurt and Offenbach welcomed the project as a boost to regional manufacturing capacity and employment. Siemens frames the investment as a commitment to Germany and to the Made for Germany initiative, whose members plan to invest over €800 billion in Germany between 2025 and the end of 2028.

Source: Siemens