Siemens facts for kids
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Headquarters in Munich
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| Public (Aktiengesellschaft) | |
| Traded as | |
| ISIN | ISIN: [https://isin.toolforge.org/?language=en&isin=DE0007236101 DE0007236101] |
| Industry | Conglomerate |
| Predecessors |
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| Founded | 1 October 1847 Berlin, Kingdom of Prussia |
| Founder | Werner von Siemens |
| Headquarters | Munich, Germany |
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Area served
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Worldwide |
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Key people
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Roland Busch (CEO) Jim Hagemann Snabe (Chairman) |
| Products | industrial automation, drive technology, building technology, energy technology, financial services, medical technology, mobility solutions, software |
| Revenue |  €77.769 billion (2023) |
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Operating income
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€11.201 billion (2023) |
| €8.529 billion (2023) |
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| Total assets |  €145.067 billion (2023) |
| Total equity | €53.060 billion (2023) |
| Owner | Siemens family (6.9%) |
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Number of employees
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320,000 (2023) |
| Divisions |
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Siemens AG is a huge German technology company that works all over the world. It helps make factories run smoothly, creates smart systems for buildings, develops solutions for trains, and provides healthcare technology.
Siemens is the biggest industrial manufacturing company in Europe. It's also a world leader in making things for industrial automation and software. The company started in 1847 in Berlin by Werner von Siemens and Johann Georg Halske. Today, Siemens has its main offices in Munich and Berlin. It employs about 320,000 people globally and earned around €78 billion in 2023.
Siemens has several main parts: Digital Industries, Smart Infrastructure, Mobility, and Financial Services. Over the years, some of its businesses have become separate companies, like Infineon Technologies (semiconductors), Osram (lights), and Siemens Energy (energy solutions).
Contents
Discovering Siemens's Past
How Siemens Began (1847 to 1901)
Werner von Siemens and Johann Georg Halske started Siemens & Halske on October 1, 1847. They invented a new type of telegraph that used a needle to point to letters, which was different from Morse code. Their first workshop opened soon after.
In 1848, the company built Europe's first long-distance telegraph line. It stretched 500 kilometers from Berlin to Frankfurt am Main. Siemens also expanded internationally, with offices opening in London and St Petersburg, Russia. By 1867, Siemens had completed a huge telegraph line over 11,000 kilometers long, connecting London to Calcutta.
Werner von Siemens also worked on dynamos, which are machines that create electricity. In 1881, a Siemens machine powered the world's first electric streetlights in Godalming, UK. The company grew and started making electric trains and light bulbs. In 1885, Siemens sold a generator to George Westinghouse, helping him experiment with AC (alternating current) power.
Siemens opened its first office in Japan in 1887. In 1890, Werner von Siemens retired, leaving the company to his brother and sons. In 1892, Siemens built the first complete electric tram system in the Southern Hemisphere in Hobart, Australia.
Growing Stronger (1901 to 1933)
In 1903, Siemens & Halske joined with another company, Schuckert & Co., to form Siemens-Schuckert. By 1907, Siemens had over 34,000 employees, making it one of Germany's largest companies.
In 1919, Siemens helped create the Osram lightbulb company. During the 1920s and 1930s, Siemens started making radios, television sets, and electron microscopes.
In 1932, several medical technology companies merged to form Siemens-Reiniger-Werke AG. This company later became part of the Siemens we know today. Siemens also built the Ardnacrusha Hydro Power station in Ireland, which was a very advanced design for its time.
Challenging Times (1933 to 1945)
During World War II, Siemens, like many German companies, used forced labor from people who were deported. Siemens had factories in or near concentration camps, including Auschwitz concentration camp and Ravensbrück concentration camp. Conditions in these factories were very difficult.
To protect its operations during the war, Siemens moved many of its plants and factories to different locations. This helped the company continue making important goods. After the war, there were discussions about Siemens's past actions during this period.
Rebuilding and Innovating (1945 to 2001)
After the war, Siemens started making new products like computers, semiconductor devices, washing machines, and pacemakers. In 1966, the three main Siemens companies – Siemens & Halske, Siemens-Schuckertwerke, and Siemens-Reiniger-Werke – officially merged to form Siemens AG.
In 1980, Siemens produced its first digital telephone exchange. The company also expanded by buying parts of other companies, like Plessey in the UK, which helped Siemens get into avionics and radar.
Siemens also worked with other tech companies. For example, in 1977, it partnered with Advanced Micro Devices (AMD) to develop microcomputers. Siemens continued to grow globally, building electric trains for Singapore's MRT system in the 1990s.
In 1997, Siemens Financial Services (SFS) was created to handle the company's financial matters. In 1998, Siemens bought Westinghouse Power Generation, becoming a major player in the world's power generation market.
By 1999, Siemens's semiconductor business became a new company called Infineon Technologies. Its computer business also became part of Fujitsu Siemens Computers.
New Century, New Challenges (2001 to 2005)
In the early 2000s, Siemens continued to grow by acquiring various companies. For example, it bought Chemtech Group in Brazil, which helps with industrial processes. Siemens also formed a joint venture called Framatome with Areva SA of France for nuclear businesses.
In 2004, Siemens acquired Bonus Energy in Denmark, which became the Siemens Wind Power division, focusing on wind energy. The company also bought US Filter Corporation, which specializes in water and wastewater treatment.
In 2005, Siemens sold its mobile phone manufacturing business to BenQ, creating the BenQ-Siemens brand. This period also saw Siemens acquiring companies in areas like industrial drives, building security, and power technologies.
Focusing on Fairness (2005 and Beyond)
Starting in 2005, Siemens faced investigations for paying bribes in different countries to win contracts. This included deals related to the 2004 Summer Olympics in Greece. Investigations found that Siemens had spent a lot of money on bribes and tried to hide these payments.
In 2008, Siemens settled with the US and German governments, paying about $1.6 billion in fines. This was a very large fine at the time. Siemens admitted to breaking rules and promised to improve its internal systems to prevent future problems. The company hired many people to make sure it followed new anti-corruption policies.
This issue wasn't entirely new for Siemens, as there had been similar problems in the past. However, after 1999, when bribing foreign officials became illegal in Germany, Siemens started using secret accounts to hide payments.
During the investigation, a former executive helped by providing information about how money was channeled to government officials. This led to more investigations and consequences for the company and some individuals involved. Siemens also agreed to not bid on World Bank projects for two years and set up a fund to support anti-corruption efforts globally.
Recent Developments (2006 to Present)
In 2007, Siemens was fined by the European Commission for working with other companies to unfairly fix prices in electricity markets. Also in 2007, Siemens and Nokia created a joint company called Nokia Siemens Networks for fixed and mobile network services.
In 2008, Siemens invested in Arava Power Company, a solar energy company, showing its commitment to green technologies. In 2009, Siemens sold its share in Framatome but formed an alliance with Rosatom of Russia for nuclear power.
In 2011, Siemens announced it would leave the nuclear sector after the Fukushima Daiichi nuclear disaster. The company decided to focus more on renewable energy technologies.
In 2013, Nokia bought Siemens's share of Nokia Siemens Networks, ending Siemens's direct role in telecommunications. Siemens continued to win large orders, like a $966.8 million contract for power plant parts from Saudi Aramco.
In 2014, Siemens announced plans to build a large factory in England for offshore wind turbines, showing its focus on wind power. It also acquired the gas turbine and compressor energy business from Rolls-Royce Holdings.
In recent years, Siemens has acquired several technology companies, including Mentor Graphics (for electronic design) in 2016 and Mendix (for app development) in 2018.
In 2020, Siemens Energy became a separate company, focusing on energy solutions. In 2021, Roland Busch became the new CEO of Siemens.
In May 2022, Siemens decided to stop its operations in Russia after 170 years due to the ongoing conflict in Ukraine. This decision resulted in a financial loss for the company.
In 2023, Siemens announced a €2 billion global investment plan to expand its manufacturing. This includes new high-tech plants in Singapore and Chengdu, China, and upgrades to facilities in Germany. This strategy aims to grow in Asia and reduce reliance on a single country.
How Siemens Works Today
| Business | share |
|---|---|
| Siemens Healthineers | 27.7% |
| Digital Industries | 27.6% |
| Smart Infrastructure | 25.2% |
| Mobility | 13.5% |
| Portfolio Companies | 4.0% |
| Reconciliation | 1.4% |
| Siemens Financial Services | 0.6% |
As of 2023, Siemens has several main divisions: Digital Industries, Smart Infrastructure, Siemens Mobility, Siemens Healthineers, and Siemens Financial Services. Siemens Healthineers and Siemens Mobility operate as independent companies, though Siemens still owns a large part of them.
Siemens also has other important units like Siemens Technology for research and development, Siemens Real Estate for managing its properties, and Siemens Advanta for consulting services.
Digital Industries: Making Factories Smart
The Digital Industries division helps factories and industries use automation and digital tools. This includes things like:
- Systems that control machines in factories.
- Software for designing products and simulating how they work.
- Sensors and communication tools for machines.
Siemens is a world leader in industrial automation and software. This division helps industries like car manufacturing, machine building, and electronics. In 2023, Siemens's CEO said they want software sales to make up 20% of their business in the future. Siemens also launched "Siemens Xcelerator," a digital platform with hardware, software, and services. They are also working with Nvidia to use 3D design tools.
Smart Infrastructure: Building Smarter Cities
Siemens Smart Infrastructure focuses on making buildings and power systems more efficient. This includes:
- Systems for building automation, like heating and air conditioning controls.
- Fire safety and security systems.
- Solutions for electrification, helping power grids be more reliable.
- Charging stations for electric vehicles.
- Equipment for distributing electricity.
The company also provides products and services for microgrids. These are small power grids that can use renewable energy sources like wind and solar. Microgrids help reduce carbon emissions and make energy systems more sustainable.
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A Siemens high-voltage transformer
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A Siemens wind power generator
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A Siemens steam turbine rotor
Siemens Mobility: Moving the World
Siemens Mobility is the part of Siemens that works on transportation. This division provides:
- Rolling stock: Different types of trains for cities, regions, and long distances.
- Rail infrastructure: Systems for rail automation, communication, and managing train stations.
In 2019, a planned merger between Siemens Mobility and another company, Alstom, was blocked by the European Commission. This was to ensure fair competition in the market.
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Siemens C651 trains for the Singapore MRT
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Amtrak Siemens SC-44 Charger diesel-electric passenger locomotive
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A Siemens Desiro train
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Bangkok Skytrain built by Siemens
Siemens Healthineers: Advancing Healthcare
Siemens Healthineers AG is a separate company that was created from Siemens's healthcare business. Siemens still owns most of it.
Siemens Healthineers provides many healthcare solutions, including:
- Medical imaging: Machines like MRI, CT scanners, and X-ray machines.
- Diagnostics: Products used for lab tests and quick tests at the point of care.
- Varian Medical Systems: Technologies for cancer care.
- Advanced therapies: Tools for image-guided, minimally invasive procedures.
Siemens Financial Services: Supporting Growth
Siemens Financial Services (SFS) offers different ways to finance projects. These services help both Siemens's customers and other companies. They provide:
- Leasing and lending: Helping companies get equipment or money.
- Project financing: Supporting large projects.
- Financial advice: Helping businesses manage their money and risks.
How Siemens is Organized
Siemens is a German company with its main office in Munich.
Business Trends
| Region | share |
|---|---|
| Europe, CIS, Africa, Middle East | 29.7% |
| United States | 24.5% |
| Asia, Australia | 22.1% |
| Germany | 19.0% |
| Americas | 4.6% |
In 2023, Siemens reported total earnings of €77.7 billion, which was an 8% increase from the year before. Siemens is one of the most valuable companies in Germany.
Locations Around the World
As of 2011, Siemens has offices and factories in about 190 countries. It has around 285 production and manufacturing facilities worldwide.
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Siemens's headquarters, Munich (front)
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Siemens office building in Munich-Giesing
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Siemens-Tower in Berlin-Siemensstadt
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"Wernerwerk" (Werner's Factory) in Berlin-Siemensstadt
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Wernerwerk II in Berlin-Siemensstadt
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Wernerwerk XV in Berlin-Siemensstadt
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Siemens office building in Erlangen
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Siemens office building in Erlangen
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Siemens site in Munich-Perlach
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Former Siemens Gas Turbine Factory (now Siemens Energy), Lincoln, England
_Berlin-Siemensstadt_002.jpg)
Research and Innovation
In 2023, Siemens invested €6.1 billion in research and development. As of 2022, Siemens had about 46,900 employees working on research and development. The company holds around 43,600 patents worldwide.
Who Leads Siemens
Siemens has had many leaders throughout its history. The current CEO of Siemens AG is Roland Busch, who took on the role in 2021. The Chairman of the Supervisory Board is Jim Hagemann Snabe.
Siemens has issued 881 million shares of common stock. The Siemens family, who founded the company, still owns about 6.9% of the shares. Most of the shares (62%) are owned by large investment companies like BlackRock. About 19% of the shares are owned by private investors. Investors from Germany own 26% of the shares, while US investors own 21%.
Images for kids
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Historical Siemens logos
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Siemens Factory and Ravensbrück concentration camp
