Siemens counting on green energy to boost bottom line, expects $21bn in new, mostly clean tech orders
Siemens, the German industrial conglomerate, says that green technologies (smart grid solution, wind turbines) will likely account for 40 percent of its planned order volume for the 2009-2012 period, the bulk of which will be generated by government stimulus spending. Overall, the company says it expects to land $21 billion in new orders globally.
World-wide, governments over the next three years are expected to spend $2.7 trillion to green their carbon-loaded energy matrix and revive their respective economies. In China, Siemens estimates that it will be able to compete for about 50 percent of the country’s green-focused stimulus spending. For more on the Chinese green stimulus, see here. And in its home market of Germany the company says clean energy investments will account for about 60 percent of the country’s overall stimulus.
“The various governments are strongly focused on sustainable investments. Siemens can help other countries to reach their climate protection targets, especially in close partnership with the local communities,” said Siemens CEO Peter Loscher in a prepared statement.
In the U.S., where Siemens has 69,900 employees, the company says it could receive orders stemming from the stimulus program of roughly $8 billion. At slightly more than $120 billion, the share of the U.S. stimulus program’s portion relevant for Siemens represents the largest share of the worldwide total. China is in second place with a Siemens-relevant share of approximately $35 billion, followed by Germany with a share of around $7 billion.
George Nolen, CEO of Siemens’ U.S. subsidiary, said the U.S. stimulus should boost orders for smart grid technologies and wind turbines. “In the past three months alone, in a down economy, we have invested over $100 million for new or expanding manufacturing – helping provide more energy-efficient technologies,” Nolen said in the written statement. The total size of the of the America Recovery and Reinvestment Act, signed into law by President Obama earlier this year stands at about $740 billion.
Siemens’ main rival General Electric estimates that it could land as much as $100 billion in stimulus spending, mostly from smart grid related investments, green energy generation and health care technology spending, The Wall Street Journal reports.
Both Siemens and GE are actively communicating on their green energy capabilities, each eager to ride the clean tech wave and craft a public image as green infrastructure giants. A good indication of the communication efforts that went into Siemens’ Monday morning release is the story in today’s Wall Street Journal MarketPlace section on the front page, bottom of the fold — a placement that a public relations firm would undoubtedly consider strategic. The article is largely based on the press released information, apparently the result of a planned communication roll-out that more than likely saw the WSJ get a copy of the release before it hit the wire….

