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Siemens Automotive Announces $55M Center in Germany

13 April 1999

Siemens Automotive Announces $55 Million Logistics And Development Center in Germany

    AUBURN HILLS, Mich., April 12 -- Siemens Automotive Systems
Group, Regensberg, Germany, is investing $55 million (DM100 million) to expand
its facility to include a 164,000-square-foot (50,000-square-meter) logistics
and development center.
    Two new complexes will be built in close proximity to Siemens Automotive
Systems' main production facility.  The logistics center will cover
approximately 32,800-square-feet (1,000-square-meters) and construction is
expected to begin in the late spring of 2000.  Siemens plans to begin hiring
300 new employees starting in the middle of next year.
    "The logistics center will enable Siemens Automotive to take greater
advantage of the synergies between decentralized local functions, such as
warehouse and logistical operations, and to further improve overall
productivity," said Jurgen Mache, chief financial officer and administrator,
Siemens Automotive Systems Group.
    The building, which will house all the logistics functions, will have a
direct link to the production facility, ensuring faster and more effective
materials and product distribution.  The concentration of warehouse operations
in one building will allow more space in the Regensburg electronics plant for
the installation of additional production lines.
    Construction of the development center will take place in two phases.  In
the first expansion phase, the core building, which should be ready for
occupancy by the middle of 2001, will provide 65,600-square-feet
(20,000-square-meters) of floor space for development activities.  The second
phase will add an additional 65,600-square-feet (20,000-square-meters) in the
middle of 2002.
    Hans Schaidinger, mayor of Regensburg, stressed the project's significance
for the city.  "Siemens' decision to expand is an added boost to Regensburg as
an attractive place to conduct business.  We are very pleased to find
ourselves in the forefront of the international business-location competition
and we regard this expansion as a confirmation of our targeted
business-friendly policies."
    Siemens Automotive employs roughly 4,300 people in Regensburg, 2,600 of
which will continue to work in the existing facility while 1,700 will be
transferred to the two new buildings.  The investment will total approximately
$55 million (DM100 million), of which $11 million (DM20 million) is earmarked
for the logistics center and $44 million (DM80 million) for the development
center.
    In fiscal 1998, Siemens' Automotive Systems Group posted sales of $3.1
billion (DM5.6 billion).  Pre-tax earnings amounted to $95 billion (DM171
million).  The Group has 70 locations worldwide and employs nearly 25,000
employees, three-quarters of whom are located outside of Germany.  Siemens
Automotive's Auburn Hills and Dearborn facilities serve as the North American
headquarters for the Automotive Systems Group.