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Siemens AG
Type Public
(AG)
FWBSIE
NYSESI
Founded 1847 in Berlin, Prussia
Founder(s) Werner von Siemens
Headquarters Berlin, Munich and Erlangen, Germany
Area served Worldwide
Key people Peter Löscher (President & CEO)
Joe Kaeser (CFO)
Wolfgang Dehen (CEO Energy Sector)
Heinrich Hiesinger (CEO Industry Sector)
Hermann Requardt (CEO Healthcare Sector)
Industry Conglomerates
Products Communication systems
Power Generation
Automation
Lighting
Medical technology
Transportation and Automotive
Railway vehicles
Water Technologies
Building technologies
Home appliances
Fire Alarms
IT Services
Siemens PLM Software
Services Business Services
Financing
Construction
Revenue 76.651 billion (2009)[1]
Operating income €4.342 billion (2009)[1]
Net income €2.292 billion (2009)[1]
Total assets €94.926 billion (2009)[1]
Total equity €26.646 billion (2009)[1]
Employees 420,800 in over 190 countries (2009)[2]
Divisions Industry Sector, Energy Sector, Healthcare Sector
Website Siemens.com

Siemens AG is Europe's largest engineering conglomerate.[3] Siemens' international headquarters are located in Berlin, Munich and Erlangen, Germany. The company has three main business sectors: Industry, Energy and Healthcare; with a total of 15 divisions.

Worldwide Siemens and its subsidiaries employ approximately 420,800 people in nearly 190 countries and reported global revenue of 76.651 billion euros as of 2009.[4] Siemens AG is listed on the Frankfurt Stock Exchange, and has been listed on the New York Stock Exchange since March 12, 2001.

Contents

History

Operational Siemens AG 170 kW hydropower generator built and installed in 1912 in Tsarska Bistritsa Palace, Bulgaria

Siemens 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 Europe; 500 km from Berlin to Frankfurt am Main. In 1850 the founder's younger brother, Carl Wilhelm Siemens started to represent the company in London. In the 1850s, the company was involved in building long distance telegraph networks in Russia. In 1855, a company branch headed by another brother, Carl Heinrich von Siemens, opened in St Petersburg, Russia. In 1867, Siemens completed the monumental Indo-European (Calcutta to London) telegraph line.[5]

In 1881, a Siemens AC Alternator driven by a watermill was used to power the world's first electric street lighting in the town of Godalming, 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. Siemens & Halske (S&H) was incorporated in 1897. In 1907 Siemens had 34,324 employees and was the seventh-largest company in the German empire by number of employees.[6] (see List of German companies by employees in 1907)

In 1919, S&H and two other companies jointly formed the Osram lightbulb company. A Japanese subsidiary was established in 1923.

During the 1920s and 1930s, S&H started to manufacture radios, television sets, and electron microscopes.

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Ardnacrusha hydro power station

In the 1930s 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 nGaedhael government.[7]

World War II era

A Siemens truck being used as a Nazi public address vehicle in 1932

Preceding World War II Siemens was involved in funding the rise of the Nazi Party and the secret rearmament of Germany. During the Second World War, Siemens supported the Hitler regime, contributed to the war effort and participated in the "Nazification" of the economy. Siemens had many factories in and around notorious concentration camps [8][9] to build electric switches for military uses.[10] In one example, almost 100,000 men and women from Auschwitz worked in a Siemens factory inside the camp, supplying the electricity to the camp. The Siemens logo is still visible above the gas chambers at Buchenwald concentration camp[11].

Post-war

In the 1950s and from their new base in Bavaria, S&H started to manufacture computers, semiconductor devices, washing machines, and pacemakers. Siemens AG was incorporated in 1966. The company's first digital telephone exchange was produced in 1980. In 1988 Siemens and GEC acquired the UK defense and technology company Plessey. Plessey's holdings were split, and Siemens took over the avionics, radar and traffic control businesses — as Siemens Plessey.

In 1991, Siemens acquired Nixdorf Computer AG and renamed it Siemens Nixdorf Informationssysteme AG.

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 introduced the first GSM cellular phone with colour display. Also in 1997 Siemens agreed to sell the defense arm of Siemens Plessey to British Aerospace (BAe) and a UK government agency, the Defence Analytical Services Agency (DASA). BAe and DASA acquired the British and German divisions of the operation respectively.[citation needed]

In 1999, Siemens' semiconductor operations were spun off into a new company known as Infineon Technologies. Also, Siemens Nixdorf Informationssysteme AG formed part of Fujitsu Siemens Computers AG in that year. The retail banking technology group became Wincor Nixdorf.

In February 2003, Siemens reopened its office in Kabul.[12]

In 2005 Siemens sold the Siemens mobile manufacturing business to BenQ, forming the BenQ-Siemens division.

In 2006, Siemens announced the purchase of Bayer Diagnostics, which was incorporated into the Medical Solutions Diagnostics division on 1 January 2007.

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.[13]

In April 2007, 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 called Nokia Siemens Networks. Nokia delayed the merger[14] due to bribery investigations against Siemens.[15]

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 canceled a contract with Siemens due to the bribery findings.[16][17]

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%[18]

In April 2009, Fujitsu Siemens Computers became Fujitsu Technology Solutions as a result of Fujitsu buying out Siemens' share of the company.

Controversy

Siemens was part of a joint venture with Nokia in 2008 to provide Iran's monopoly telecom company with technology that allowed it to intercept the internet communications of its citizens to an unprecedented degree.[19][20] The technology reportedly allowed it to use 'deep packet inspection' to read and even change the content of everything from "emails and internet phone calls to images and messages on social-networking sites such as Facebook and Twitter". The technology "enables authorities to not only block communication but to monitor it to gather information about individuals, as well as alter it for disinformation purposes" expert insiders told the Wall Street Journal. During the post-election protests in Iran in June 2009, Iran's internet access was reported to have slowed to less than a tenth of its normal speeds, and experts suspected this was due to the use of the interception technology.[21] The joint venture company, Nokia-Siemens Networks, asserted in a press release that it provided Iran only with a 'lawful intercept capability' "solely for monitoring of local voice calls". "Nokia Siemens Networks has not provided any deep packet inspection, web censorship or Internet filtering capability to Iran," it said.[22]

Chief executives and executive board members

Corporate affairs

Management

Peter Löscher (formerly of Merck) is the current president and the CEO as of July 1, 2007.[23] He succeeded Dr. Klaus Kleinfeld after the scandal charges of bribery against Siemens. Gerhard Cromme is the current chairman of the supervisory board of Siemens AG. He succeeded Dr. Heinrich von Pierer on April 26, 2007.

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, among which ABB, Alstom, Fuji, Hitachi Japan, AE Power Systems, Mitsubishi Electric Corp, Schneider, Areva, Toshiba and VA Tech[24] 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."[24] Siemens was given the highest fine of €396 million, more than half of the total, for its alleged leadership role in the incident.

Bribery case

Siemens agreed to pay a record $1.34 billion in fines in December 2008[25] after being investigated for serious bribery, involving Heinz-Joachim Neubürger, former chief financial officer, Karl-Hermann Baumann, another former CFO and exchairman, and Johannes Feldmayer, a former management board member.[26] 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.[27]

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 gas turbine supply contracts with Enel, an Italian energy company. The contracts were valued at about €450 million. Siemens was fined €38 million.[28]

Organization structure

Since 1 January 2008, the company is divided into 3 sectors and a total of 15 divisions.[29]

  • Industry Sector
    • Drive Technology
    • Industry Automation
    • Building Technologies
      • Fire Safety & Security Products
      • Security Solutions
      • Heating & Ventilation Products
      • Building Automation
    • Industry Solutions
    • Water Technologies [30]
    • Metal Technology Division
    • Mobility (see Siemens Mobility)
    • Osram
    • Market Specific Solutions
    • Financial Solutions
    • IT Solutions and Services (This division is scheduled to no longer be a part of Siemens AG starting July 1, 2010. It is rumored that it will be purchased by a number of different organizations including Infosys and the BBC.)
    • Communication Networks
  • Energy Sector
    • Fossil Power Generation
    • Renewable Energy
    • Oil & Gas
    • Service Rotating Equipment
    • Power Transmission
    • Power Distribution
    • Financial Solutions
    • IT Solutions and Services
  • Healthcare Sector
    • Diagnostic Imaging and Therapy
    • Laboratory Diagnostics
    • Infrastructure Solutions
    • Hearing Instruments
    • Financial Solutions
    • IT Solutions and Services

Key business areas and subsidiary companies before 2008

Siemens' five operational business areas before 2008 were:

The company is also active in Financing (Siemens Financial Services), Real Estate (Siemens Real Estate), Home Appliances (BSH), Water Technologies (SWT), Computers (Fujitsu Siemens Computers), and Business Services.

Acquisitions and mergers

  • mergerd with Allis-Chalmers Electrical to form Siemens-Allis (1970s
  • Shared Medical Systems Corporation (2000)
  • Chemtech Brazil (2001)
  • Atecs Mannesmann AG (2001) including Mannesmann Dematic, Mannemann Sachs, Mannesmann VDO Automotive, Mannesmann Demag Krauss-Maffei
  • Danfoss Flow Division (2003)
  • Bonus Energy (2004) — now Siemens Wind Power A/S
  • IndX Software (2004)
  • Chrysler Group’s Huntsville Electronics Corporation (2004)
  • USFilter Corporation (2004) — now Siemens Water Technologies Corp.
  • Woodlands Technology (2004)
  • Photo-Scan (2004)
  • DASAN (South Korea - 2004)
  • Controlotron, USA (2004)
  • Alstom Industrial Turbine Business (2005)
  • Jet Turbine Services (2005)
  • Transmitton (2005) — now Siemens Transportation Systems UK
  • Shaw Power (2005)
  • Chantry Networks (2005)
  • Myrio (USA/Canada - 2005)
  • CTI Molecular Imaging (2005)
  • Evoline (2005)
  • VA Tech Group (Austria - 2005)
  • Power Technologies International (2005) — now Siemens Power Transmission & Distribution, Inc.
  • AN Windenergie GmbH (2005) — now Siemens Wind Power GmbH
  • Wheelabrator Air Pollution Control, USA (2005); now Siemens Environmental Systems and Services
  • Bewator AB (Sweden - 2005) Security
  • Flender Holding GmbH (March 2005)
  • Diagnostic Products Corp. (2006) — now Siemens Healthcare Diagnostics
  • Kadon Electro Mechanical Services Ltd. (2006)— now TurboCare Canada Ltd.
  • Kühnle, Kopp, & Kausch AG (2006) — now Siemens Turbomachinery Equipment GmbH
  • Opto Control (2006)
  • Bayer AG -Diagnostic branch (2006)
  • VistaScape Security Systems (2006)
  • Vai Ingdesi Automation (Argentine - 2007) Industrial Automation
  • UGS Corp. (2007)
  • Dade Behring (2007)
  • Sidelco (Quebec, Canada - 2007)
  • S/D Engineers, Inc. (2007); now Siemens Environmental Systems and Services
  • Gesellschaft für Systemforschung und Dienstleistungen im Gesundheitswesen mbH (GSD) (Germany - 2007)
  • SG Wasseraufbereitung und Regenerierstation GmbH (SG Water).[2] (Germany-2008)
SVAI MT HeadQuarter (France)

Major clients

Siemens Foundation

Through an American sub-organisation known as the Siemens Foundation, Siemens also devotes funds to rewarding students and AP teachers. One of its main programs is the Siemens Westinghouse Competition in mathematics, science, and technology, which annually grants scholarships up to US$100,000 to both individual and team entrants. According to the foundation website, Siemens awards a total of nearly US$2 million in scholarship money every year.[citation needed]

Products

Industrial

  • Industrial Instrumentation (Sensors and Controls)
  • Gas & Steam Turbines
  • SENTRON Low voltage switchgear
  • SIRIUS Controls
  • SINAMICS & Perfect Harmony drives
  • Electric motors
  • SIMATIC Programmable Logic Controller (PLC)
  • SIMATIC Human Machine Interface (HMI)
  • SIMATIC PCS7 Distributed Control System (DCS)
  • SINTESO Fire detection system
  • SINUMERIK Computerized Numerical Control (CNC)
  • SIMATIC Automation Designer

Telecommunications

  • Telecommunication Service Platform, the TSP 7000
  • Gigaset, Home entertainment products, including Gigaset M740 AV, a set-top box to receive TDT and integrate it in a domestic network (using WLAN or cable), i.e. for home streaming media.
  • Hicom Trading E
  • Hicom 300
  • HiPath
  • HiQ 8000 Softswitch
  • HiE 9200 Softswitch
  • MSR32R
  • EWSD telephone exchanges
  • SPX 2000 small digital telephone exchange (rural)
  • Siemens Gigaset cordless telephones
  • OpenScape Voice (HiPath 8000)
  • Siemens Mobile Phones - divested to BenQ in 2005
  • Radio and core products for 2G and 3G Mobile Networks (GSM, UMTS, ...)

Transportation

Control Systems

  • SIMATIC PCS 7 Process Automation System for Process and Hybrid industries
  • Siemens SPPA-T2000 Control System (formerly Teleperm XP)
  • Siemens SPPA-T3000 Control System (For Electrical Power Generation Control)

Healthcare

  • Acuson Antares Ultrasound
  • Acuson Cypress Ultrasound
  • Acuson S2000 Ultrasound
  • ARTISTE Linear Accelerator
  • AXIOM Aristos
  • AXIOM Artis
  • AXIOM Iconos
  • AXIOM Luminos dRF
  • AXIOM Multix
  • AXIOM Sensis
  • Biograph TruePoint PET.CT
  • DocuLive, EPR
  • Dynamics, Multi-modality image review, reporting, and PACS
  • E.Cam Signature Series Gamma Camera
  • Magnetom C!, a low field open MRI (.35T)
  • Magnetom Avanto, a Tim system MRI (1.5T)
  • MAGNETOM Essenza, a Tim system MRI (1.5T)
  • Magnetom Espree, a Tim system, open bore MRI (1.5T)
  • Magnetom Espree Pink, a Tim system, breast dedicated open bore MRI (1.5T)
  • Magnetom Symphony (1.5T)
  • Magnetom Symphony, a Tim system (1.5T)
  • Magnetom Trio, A Tim System, ultra high field MRI (3.0T)
  • Magnetom Verio, A Tim System, ultra high field MRI (3.0T)
  • Mammomat Inspiration
  • Mammomat Novation
  • Mobilett
  • ONCOR Linear Accelerator
  • Primus Linear Accelerator
  • Siemens Soarian(TM) HIS
  • SOMATOM(R) Definition CT
  • SOMATOM(R) Sensation CT
  • SOMATOM(R) Emotion CT
  • Symbia TruePoint SPECT-CT
  • Ysio

Other

  • @ctiveFRIEND
  • Advia(R) hematology systems[33]
  • Industrial programmable controls (including Simatic PLC, and Logo! microcontrollers)
  • The Siemens Servo life support ventilator line
  • Siemens PLM NX 3D CAD/CAM/CAE
  • Siemens PLM Teamcenter cPDM
  • Siemens PLM Tecnomatix Digital Manufacturing
  • Sinorix(TM)
  • Sinteso(TM) fire detection system
  • Sistore(TM)
  • Spectrum PowerCC(TM)
  • Windturbines, 1.3 MW, 2.3 MW, 3.6 MW

Competitors

Similar major corporations to Siemens:

See also

References

  • Greider, William (1997). One World, Ready or Not. Penguin Press. ISBN 0-7139-9211-5.
Footnotes
  1. ^ a b c d e "Siemens AG Annual report". 2009. http://w1.siemens.com/annual/08/en/key_figures.htm. 
  2. ^ "Siemens AG Annual report". http://w1.siemens.com/annual/08/en/key_figures.htm. Retrieved 2009-10-03. 
  3. ^ "Bloomberg.com". http://www.bloomberg.com/apps/news?pid=20601100&sid=agxq4nZkE.lc&refer=germany. Retrieved 2008-01-12. 
  4. ^ "Siemens AG – Annual Report". www.siemens.com. January 2008. http://w1.siemens.com/annual/07/en/index/key_figures.htm. Retrieved 25 February 2008. 
  5. ^ "Siemens history". http://w4.siemens.de/archiv/en/laender/asien/indien.html. Retrieved 2008-01-12. 
  6. ^ Fiedler, Martin (1999). "Die 100 größten Unternehmen in Deutschland - nach der Zahl ihrer Beschäftigten - 1907, 1938, 1973 und 1995" (in German). Zeitschrift für Unternehmensgeschichte (Munich: Verlag C.H. Beck) 1: 32–66. 
  7. ^ Ardnacrusha - Dam hard job - Sunday Mirror, August 4, 2002
  8. ^ eh.net
  9. ^ BBC - Zyklon controversy
  10. ^ jewishvirtuallibrary.org - Ravensbruck
  11. ^ Claude Lanzmann. (1985). Shoah. [DVD]. New Yorker Films. 
  12. ^ United Nations Security Council meeting 4943 page 7 on 15 April 2004 (retrieved 2007-09-06)
  13. ^ "Board member arrested in new blow for Siemens". http://www.ft.com/cms/s/75295b46-dcc9-11db-a21d-000b5df10621.html. 
  14. ^ Associated Press quoted by Forbes: Nokia-Siemens Venture to Start in April, March 15, 2007
  15. ^ International Herald Tribune: Bribery trial deepens Siemens woes, March 13, 2007
  16. ^ Agande, Ben; Miebi Senge (2007-12-05). "Bribe: FG blacklists Siemens". Vanguard (Vanguard Media). http://www.vanguardngr.com/index.php?option=com_content&task=view&id=2621&Itemid=41. Retrieved 2007-12-07. 
  17. ^ Taiwo, Juliana (2007-12-06). "FG Blacklists Siemens, Cancels Contract". Thisday (Leaders & Company). http://www.thisdayonline.com/nview.php?id=97185. Retrieved 2007-12-07. 
  18. ^ Siemens to spin off SEN into JV with Gores Group
  19. ^ http://news.bbc.co.uk/1/hi/technolo/8112550.stm
  20. ^ Washington Times
  21. ^ http://online.wsj.com/article/SB124562668777335653.html#mod
  22. ^ http://www.nokiasiemensnetworks.com/global/Press/Press+releases/news-archive/Provision+of+Lawful+Intercept+capability+in+Iran.htm
  23. ^ cnbc.com
  24. ^ a b EU cracks down on electricity-gear cartel, EurActiv, 25 January 2007 (English)
  25. ^ "Siemens to Pay $1.34 Billion in Fines, The New York Times". http://www.nytimes.com/2008/12/16/business/worldbusiness/16siemens.html?_r=1&hp=&pagewanted=print. Retrieved 2008-12-16. 
  26. ^ ft.com
  27. ^ iht.com
  28. ^ "The New York Times". http://www.nytimes.com/2007/05/15/business/worldbusiness/15siemens.html. Retrieved 2007-05-15. 
  29. ^ "New organizational structure of Siemens AG as of January 1, 2008". http://w1.siemens.com/press/en/events/press-briefing.php. Retrieved 2008-03-08. 
  30. ^ [1]
  31. ^ Power Generation, Power Transmission & Distribution
  32. ^ Siemens VDO
  33. ^ diagnostics.siemens.com

Further reading

  • Weiher, Siegfried von /Herbert Goetzeler (1984). The Siemens Company, Its Historical Role in the Progress of Electrical Engineering 1847–1980, 2nd ed. Berlin and Munich.
  • Feldenkirchen, Wilfried (2000). Siemens, From Workshop to Global Player, Munich.
  • Feldenkirchen, Wilfried / Eberhard Posner (2005): The Siemens Entrepreneurs, Continuity and Change, 1847–2005, Ten Portraits, Munich.

External links


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