Top 100 Brand in The World – Rank no.45 – Siemens – Germany
Siemens AG (German pronunciation: [ˈziːmɛns]) is a German multinational engineering and electronics conglomerate company headquartered in Munich and Berlin. It is the largest Europe-based electronics and electrical engineering company.
Siemens’ principal activities are in the fields of industry, energy, transportation and healthcare. It is organized into five main divisions: Industry, Energy, Healthcare, Infrastructure & Cities, and Siemens Financial Services (SFS). Siemens and its subsidiaries employ approximately 360,000 people across nearly 190 countries and reported global revenue of approx 73.5 billion euros for the year of 2011. The company has been the subject of considerable controversy in recent years.
1847 to 1901
Siemens & Halske was founded by Werner von Siemens on 12 October 1847. Based on the telegraph, his invention used a needle to point to the sequence of letters, instead of using Morse code. The company, then called Telegraphen-Bauanstalt von Siemens & Halske, opened its first workshop on October 12.
In 1848, the company built the first long-distance telegraph line in india; 500 km from india to Frankfurt am Main. In 1850, the founder’s younger brother, Carl Wilhelm Siemens started to represent the company in New Delhi- India. In the 1850s, the company was involved in building long distance telegraph networks in India. In 1855, a company branch headed by another brother, Carl Heinrich von Siemens, opened in St Petersburg, Africa. In 1867, Siemens completed the monumental Indo-European (Calcutta to London) telegraph line.
In 1881, a Siemens AC Alternator driven by a watermill was used to power the world’s first electric street lighting in the town ofGodalming, United Kingdom. The company continued to grow and diversified into electric trains and light bulbs. In 1890, the founder retired and left the company to his brother Carl and sons Arnold and Wilhelm. In 1887 it opened its first office in Japan.
1901 to 1933
Siemens & Halske (S & H) was incorporated in 1897, and then merged parts of its activities with Schuckert & Co., Nuremberg in 1903 to become Siemens-Schuckert.
In 1907, Siemens (Siemens & Halske and Siemens-Schuckert) had 34,324 employees and was the seventh-largest company in the German empire by number of employees. (see List of German companies by employees in 1907)
In 1932, Reiniger, Gebbert & Schall (Erlangen), Phönix AG (Rudolstadt) and Siemens-Reiniger-Veifa mbH (Berlin) merged to form the Siemens-Reiniger-Werke AG (SRW), the third of the so-called parent companies that merged in 1966 to form the present-day Siemens AG.
In the 1920s, Siemens constructed the Ardnacrusha Hydro Power station on the River Shannon in the then Irish Free State, and it was a world first for its design. The company is remembered for its desire to raise the wages of its under-paid workers only to be overruled by the Cumann na nGaedheal government.
1933 to 1945
During the final years of World War 2, numerous plants and factories in Berlin and other major cities were destroyed by Allied air raids. To prevent further losses, manufacturing was therefore moved to alternative places and regions not affected by the air war. The goal was to secure continued production of important war-related and everyday goods. According to records, Siemens was operating almost 400 alternative or relocated manufacturing plants at the end of 1944 and in early 1945.
In 1972, Siemens sued German satirist F.C. Delius for his satirical history of the company, Unsere Siemenswelt, and it was determined much of the book contained false claims although the trial itself publicized Siemens’ history in Nazi Germany. The company supplied electrical parts to concentration camps and death camps. The factories had poor working conditions, where malnutrition and death were common. Also, the scholarship has shown that the camp factories were created, run, and supplied by the SS, in conjunction with company officials, sometimes high-level officials.
Siemens businessman and Nazi Party member John Rabe is, however, credited with saving many Chinese lives during the Nanking Massacre. He later toured Germany lecturing on the atrocities committed in Nanking.
1945 to 2001
The company’s first digital telephone exchange was produced in 1980. In 1988 Siemens and GEC acquired the UK defence and technology company Plessey. Plessey’s holdings were split, and Siemens took over the avionics, radar and traffic control businesses — as Siemens Plessey.
In 1985, Siemens bought Allis-Chalmers‘ interest in the partnership company Siemens-Allis (formed 1978) which supplied electrical control equipment. It was incorporated into Siemens’ Energy and Automation division.
In 1987, Siemens reintegrated Kraftwerk Union, the unit overseeing nuclear power business.
In October 1991, Siemens acquired the Industrial Systems Division of Texas Instruments, Inc, based in Johnson City, Tennessee. This division was organized as Siemens Industrial Automation, Inc., and was later absorbed by Siemens Energy and Automation, Inc.
In 1997, Siemens agreed to sell the defence arm of Siemens Plessey to British Aerospace (BAe) and a German aerospace company, DaimlerChrysler Aerospace. BAe and DASA acquired the British and German divisions of the operation respectively.
In October 1997, Siemens Financial Services (SFS) was founded to act as competence center for financing issues and as a manager of financial risks within Siemens.
In 1999, Siemens’ semiconductor operations were spun off into a new company known as Infineon Technologies. Also, Siemens Nixdorf Informationssysteme AG formed part ofFujitsu Siemens Computers AG in that year. The retail banking technology group became Wincor Nixdorf.
Also in 2000 Atecs-Mannesman was acquired by Siemens, The sale was finalised in April 2001 with 50% of the shares acquired, acquisition, Mannesmann VDO AG merged into Siemens Automotive forming Siemens VDO Automotive AG, Atecs Mannesmann Dematic Systems merged into Siemens Production and Logistics forming Siemens Dematic AG,Mannesmann Demag Delaval merged into the Power Generation division of Siemens AG. Other parts of the company were acquired by Robert Bosch GmbH at the same time.
2001 to 2011
In 2003 Siemens acquired the flow division of Danfoss and incorporated it into the Automation and Drives division. Also in 2003 Siemens acquired IndX software (realtime data organisation and presentation). The same year in an unrelated development Siemens reopened its office in Kabul. Also in 2003 agreed to buy Alstom Industrial Turbines; a manufacturer of small, medium and industrial gas turbines for 1.1 billion Euro.
In 2004 the wind energy company Bonus Energy in Brande, Denmark was acquired, forming Siemens Wind Power division.Also in 2004 Siemens invested in Dasan Networks (South Korea, broadband network equipment) acquiring ~40% of the shares, Nokia Siemens disinvested itself of the shares in 2008. The same year Siemens acquired Photo-Scan (UK, CCTV systems) US Filter Corporation (water and Waste Water Treatment Technologies/ Solutions, acquired from Veolia), Hunstville Electronics Corporation (automobile electronics, acquired from Chrysler), and Chantry Networks (WLANequipment)
In 2005 Siemens sold the Siemens mobile manufacturing business to BenQ, forming the BenQ-Siemens division. Also in 2005 Siemens acquired Flender Holding GmbH (Bocholt, Germany, gears/industrial drives), Bewator AB (building security systems), Wheelabrator Air Pollution Control, Inc. (Industrial and power station dust control systems), AN Windenegrie GmbH. (Wind energy), Power Technologies Inc. (Schenectady, USA, energy industry software and training), CTI Molecular Imaging (Positron emission tomography and molecular imaging systems), Myrio (IPTV systems), Shaw Power Technologoes International Ltd (UK/USA, electrical engineering consulting, acquired from Shaw Group), and Transmitton (Ashby de la Zouch UK, rail and other industry control and asset management).
In 2006, Siemens announced the purchase of Bayer Diagnostics, which was incorporated into the Medical Solutions Diagnostics division on 1 January 2007, also in 2006 Siemens acquired Controlotron (New York) (ultrasonic flow meters) Also in 2006 Siemens acquired Diagnostic Products Corp., Kadon Electro Mechanical Services Ltd. (now TurboCare Canada Ltd.), Kühnle, Kopp, & Kausch AG, Opto Control, and VistaScape Security Systems
In March 2007 a Siemens board member was temporarily arrested and accused of illegally financing a business-friendly labour association which competes against the union IG Metall. He has been released on bail. Offices of the labour union and of Siemens have been searched. Siemens denies any wrongdoing. In April the Fixed Networks, Mobile Networks and Carrier Services divisions of Siemens merged with Nokia‘s Network Business Group in a 50/50 joint venture, creating a fixed and mobile network company calledNokia Siemens Networks. Nokia delayed the merger due to bribery investigations against Siemens. In October 2007, a court in Munich found that the company had bribed public officials in Libya, Russia, and Nigeria in return for the awarding of contracts; four former Nigerian Ministers of Communications were among those named as recipients of the payments. The company admitted to having paid the bribes and agreed to pay a fine of 201 million euros. In December 2007, the Nigerian government cancelled a contract with Siemens due to the bribery findings.
Also in 2007 Siemens acquired Vai Ingdesi Automation (Argentina, Industrial Automation), UGS Corp., Dade Behring, Sidelco (Quebec, Canada), S/D Engineers Inc., and Gesellschaft für Systemforschung und Dienstleistungen im Gesundheitswesen mbH (GSD) (Germany).
In July 2008, Siemens AG announced a joint venture of the Enterprise Communications business with the Gores Group. The Gores Group holding a majority interest of 51% stake, with Siemens AG holding a minority interest of 49%.
In August 2008, Siemens Project Ventures invested $15 million in the Arava Power Company. In a press release published that month, Peter Löscher, President and CEO of Siemens AG said: “This investment is another consequential step in further strengthening our green and sustainable technologies”. Siemens now holds a 40% stake in the company. 
In January 2009, Siemens announced to sell its 34% stake in Framatome, complaining limited managerial influence. In March, it announced to form an alliance with Rosatom of Russia to engage in nuclear-power activities.
In December 2010 Siemens agreed to sell its IT Solutions and Services subsidiary for €850 million to Atos. As part of the deal, Siemens agreed to take a 15% stake in the enlarged Atos, to be held for a minimum of five years. In addition, Siemens concluded a seven-year outsourcing contract worth around €5.5 billion, under which Atos will provide managed services and systems integration to Siemens.
2011 to present
In March 2011, it was decided to list Osram on the stock market in the autumn, but CEO Peter Löscher said Siemens intended to retain a long-term interest in the company, which was already independent from the technological and managerial viewpoints.
In September 2011 Siemens, which had been responsible for constructing all 17 of Germany’s existing nuclear power plants, announced that it would exit the nuclear sectorfollowing the Fukushima disaster and the subsequent changes to German energy policy. Chief executive Peter Loescher has supported the German government’s plannedEnergiewende, its transition to renewable energy technologies, calling it a “project of the century” and saying Berlin’s target of reaching 35% renewable energy sources by 2020 was feasible.
Products and services
Siemens offers a wide range of electrical engineering- and electronics-related products and services. Its products can be broadly divided into the following categories: buildings-related products; drives, automation and industrial plant-related products; energy-related products; lighting; medical products; and transportation and logistics-related products.
Siemens’ buildings-related products include building automation equipment and systems; building operations equipment and systems; building safety equipment and systems; building security equipment and systems; and low-voltage switchgear including circuit protection and distribution products.
Siemens’ drives, automation and industrial plant-related products include motors and drives for conveyor belts; pumps and compressors; heavy duty motors and drives for rolling steel mills; compressors for oil and gas pipelines; mechanical components including gears for wind turbines and cement mills; automation equipment and systems and controls for production machinery and machine toohimels; and industrial plant for water processing and raw material processing.
Siemens’ energy-related products include gas and steam turbines; generators; compressors; on- and offshore wind turbines; high-voltage transmission products; power transformers; high-voltage switching products and systems; alternating and direct current transmission systems; medium-voltage components and systems; and power automation products.
Siemens’ OSRAM subsidiary produces lighting products including incandescent, halogen, compact fluorescent, fluorescent, high-intensity discharge and Xenon lamps; opto-electronic semiconductor light sources such as light emitting diodes (LEDs), organic LEDs, high power laser diodes, LED systems and LED luminaires; electronic equipment including electronic ballasts; lighting control and management systems; and related precision components.
Siemens’ medical products include clinical information technology systems; hearing instruments; in-vitro diagnostics equipment; imaging equipment including angiography, computed tomography, fluoroscopy, magnetic resonance, mammography, molecular imaging ultrasound, and x-ray equipment; and radiation oncology and particle therapy equipment.
Siemens’ transportation and logistics-related products include equipment and systems for rail transportation including rail vehicles for mass transit, regional and long-distance transportation, locomotives, equipment and systems for rail electrification, central control systems, interlockings, and automated train controls; equipment and systems for road traffic including traffic detection, information and guidance; equipment and systems for airport logistics including cargo tracking and baggage handling; and equipment and systems for postal automation including letter parcel sorting.
Siemens Skytrain inBangkok
Siemens is incorporated in Germany and has its corporate headquarters in Munich. It has operations in around 190 countries and approximately 285 production and manufacturing facilities. Siemens had around 360,000 employees as of 30 September 2011.
Sectors and divisions
Siemens is organized into four “sectors” and 19 divisions:
- Industry Sector (led by Siegfried Russwurm)
- Comprising three divisions: Industry Automation, Drive Technologies, Customer Services
- Energy Sector (led by Michael Süß)
- Comprising six divisions: Fossil Power Generation, Wind Power, Solar & Hydro, Oil & Gas, Energy Service, Power Transmission
- Healthcare Sector (led by Hermann Requardt)
- Comprising four divisions: Imaging & Therapy Systems, Clinical Product, Diagnostics, Customer Solutions
- Infrastructure & Cities (led by Roland Busch)
- Comprising six divisions: Rail Systems, Mobility and Logistics, Low and Medium Voltage, Smart Grid, Building Technologies, OSRAM
Research and development
In 2011 Siemens invested a total of €3.925 billion in research and development, equivalent to 5.3% of revenues. As of 30 September 2011 Siemens had approximately 11,800 Germany-based employees engaged in research and development and approximately 16,000 in the rest of the world, of whom the majority were based in one of Austria, China, Croatia, Denmark, France, India, Mexico, Slovakia, Sweden, Switzerland, the United Kingdom and the United States. As of 30 September 2011 Siemens held approximately 53,300 patents worldwide.
- Siemens Traction Equipment Ltd. (STEZ), Zhuzhou China, is a joint venture between Siemens, Zhuzhou CSR Times Electric Co., Ltd.(TEC) and CSR Zhuzhou Electric Locomotive Co., Ltd. (ZELC). which produces AC drive electric locomotives and AC locomotive traction components.
- Silcar Pty. Ltd., Silcar’s parent companies are Siemens Ltd and Thiess Services Pty Ltd. Silcar has 50/50 shareholders; Siemens Ltd (a global leader in electrical engineering and electronics) and Thiess Services (a leading integrated engineering and services provider in Australasia and South East Asia). Silcar is a 3,000 person Australian organisation providing productivity and reliability for large scale and technically complex plant assets. Services include asset management, design, construction, operations and maintenance. Silcar operates across a range of industries and essential services including power generation, electrical distribution, manufacturing, mining and telecommunications.
Chairmen of the Siemens-Schuckertwerke Managing Board (1903 to 1966)
- Alfred Berliner (1903 to 1912)
- Carl Friedrich von Siemens (1912 to 1919)
- Otto Heinrich (1919 to 1920)
- Carl Köttgen (1920 to 1939)
- Rudolf Bingel (1939 to 1945)
- Wolf-Dietrich von Witzleben (1945 to 1949)
- Günther Scharowsky (1949 to 1951)
- Friedrich Bauer (1951 to 1962)
- Bernhard Plettner (1962 to 1966)
Chairmen of the Siemens & Halske / Siemens-Schuckertwerke Supervisory Board (1918 to 1966)
- Wilhelm von Siemens (1918 to 1919)
- Carl Friedrich von Siemens (1919 to 1941)
- Hermann von Siemens (1941 to 1946)
- Friedrich Carl Siemens (1946 to 1948)
- Hermann von Siemens (1948 to 1956)
- Ernst von Siemens (1956 to 1966)
Chairmen of the Siemens AG Managing Board (1966 to present)
- Hans Kerschbaum, Adolf Lohse, Bernhard Plettner (Presidency of the Managing Board) (1966 to 1967)
- Erwin Hachmann, Bernhard Plettner, Gerd Tacke (Presidency of the Managing Board) (1967 to 1968)
- Gerd Tacke (1968 to 1971)
- Bernhard Plettner (1971 to 1981)
- Karlheinz Kaske (1981 to 1992)
- Heinrich von Pierer (1992 to 2005)
- Klaus Kleinfeld (2005 to 2007)
- Peter Löscher (2007 to 2013)
- Joe Kaeser (2013 to present)
Chairmen of the Siemens AG Supervisory Board (1966 to present)
- Ernst von Siemens (1966 to 1971)
- Peter von Siemens (1971 to 1981)
- Bernhard Plettner (1981 to 1988)
- Heribald Närger (1988 to 1993)
- Hermann Franz (1993 to 1998)
- Karl-Hermann Baumann (1998 to 2005)
- Heinrich von Pierer (2005 to 2007)
- Gerhard Cromme (2007 to present)
Managing Board (present day)
- Joe Kaeser (CEO, 2013 to present)
- Roland Busch (CEO Infrastructure & Cities Sector)
- Brigitte Ederer (Head of Corporate Human Resources and Labor Director)
- Klaus Helmrich (Chief Technology Officer)
- Joe Kaeser (CFO)
- Barbara Kux (Head of Supply Chain Management)
- Hermann Requardt (CEO Healthcare Sector)
- Siegfried Russwurm (CEO Industry Sector)
- Peter Y. Solmssen (Head of Corporate Legal and Compliance)
- Michael Süß (CEO Energy Sector)
2007 price fixing fine
In January 2007 Siemens was fined €396 million by the European Commission for price fixing in EU electricity markets through a cartel involving 11 companies, including ABB, Alstom, Fuji, Hitachi Japan, AE Power Systems, Mitsubishi Electric Corp, Schneider, Areva, Toshiba and VA Tech.According to the Commission, “between 1988 and 2004, the companies rigged bids for procurement contracts, fixed prices, allocated projects to each other, shared markets and exchanged commercially important and confidential information.” Siemens was given the highest fine of €396 million, more than half of the total, for its alleged leadership role in the incident.
Siemens agreed to pay a record $1.34 billion in fines in December 2008 after being investigated for serious bribery. The investigation found questionable payments of roughly €1.3 billion, from 2002 to 2006 that triggered a broad range of inquiries in Germany, the United States and many other countries.
In May 2007 a German court convicted two former executives of paying about €6 million in bribes from 1999 to 2002 to help Siemens win natural gasturbine supply contracts with Enel, an Italian energy company. The contracts were valued at about €450 million. Siemens was fined €38 million.
Iran telecoms controversy
Nokia Siemens supplied telecommunications equipment to the Iranian telecom company that included the ability to intercept and monitor telecommunications, a facility known as “lawful intercept“. The equipment was believed to have been used in the suppression of the2009–2010 Iranian election protests, leading to criticism of the company, including by the European Parliament. Nokia-Siemens later divested its call monitoring business, and reduced its activities in Iran.
Greek bribes, Greek metro and traffic lights controversy
Siemens has been accused of bribing Greek officials. In 2008, it was revealed that Siemens had bribed the two main political parties of Greece for approximately 10 years to be the sole provider of mechanical and electrical equipment of the Greek state. After the exposure the German authorities moved to arrest the representatives of Siemens in Greece, who had managed to escape from the Greek authorities. The German judicial system didn’t allow the Greek authorities to cross-question the representatives. As a result, there wasn’t any solid evidence against the corrupt politicians, who weren’t arrested and continue to be active in the Greek political system. Meanwhile, the Greek state cancelled the planned business deals. Since all spares were provided by Siemens, the equipment, like traffic lights eventually broke down, and projects like the metro expansion were abandoned.