Siemens expands switchgear manufacturing
Siemens executives inaugurate a new switchgear production facility in Germany. (Courtesy: Siemens)
Siemens is investing €100 million ($100 million) to expand its switchgear manufacturing plant in Frankfurt, Germany.
The company inaugurated a new high-speed warehouse and expanded production area, which is expected to begin operations early in 2025.
Approximately 13,000 square meters of the total 15,000 square meter building area will be used for production halls, with the remaining space to be used for offices. The site has both rail and port access.
The expansion allows Siemens to increase the production capacity of its SF6-free 8DAB – blue GIS medium-voltage switchgear. The gas-insulated switchgear is deployed in transformer and switching stations and uses the climate-neutral Clean Air insulating medium, which consists of natural components of the ambient air. Siemens said it is committed to moving away from sulfur hexafluoride (SF6) and producing sustainable medium-voltage switchgear.
“For 40 years now, our plant in Frankfurt-Fechenheim has been a global center of competence for gas-insulated medium-voltage switchgear,” said Mark Backhaus, the site manager of the Siemens switchgear plant in Frankfurt. “Our second expansion in a short period of time is an investment in our future and paves the way for climate-neutral power distribution.”
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Siemens’ expansion addresses the limited global supply of electrical equipment, which stands as one of the greater threats to the energy transition.
Global prices for medium-voltage switchgear have increased by 26% since January 2022, according to market analysis from Wood Mackenzie.
“Robust demand is expected to persist for the foreseeable future, keeping both lead times and prices elevated,” Wood Mackenzie analysts said. “Demand for electrical equipment, especially switchgear and transformers, is anticipated to remain strong as the investment into manufacturing facilities and data centers continues to ramp up, while utilities are expected to respond to the increasing electricity demand by expanding generation capacity and bolstering the transmission and distribution infrastructure.”
Part of the challenge is the “extremely high barriers of entry” that face new suppliers, and surging demand may only be temporary.
Originally published by John Engel on Power Grid International.
