RESHORING CASE

Siemens

Company details
Code: 
Siemens
Company name: 
Siemens
Company country: 
Germany
Number of employees: 
351000
Sector: 
C - Manufacturing
Sector detail: 
C27 - Manufacture of electrical equipment
Sub-sectors: 
C27.9 - Manufacture of other electrical equipment
Reshoring details
Reshoring announcement date: 
06/02/2017
Starting implementation date: 
June, 2017
Reshored to: 
Germany
Location of affected unit(s): 
Cuxhaven
Location code: 
DE932
Reshored business function: 
Production
Partial or Total reshoring: 
Partial
Reshoring governance mode: 
In house (in own facilities)
Estimated job gains: 
1000
Reasons for reshoring: 
Implementation of strategies based on product/process innovation
Know-how in the home country
Logistics costs
Case narrative: 

Siemens is a German company. The wind turbine operation of Siemens Group is moved from its factory in Brande, (Denmark) to a factory in Cuxhaven (Germany). Danish knowledge and experience about wind turbines is not enough to saturate the fast-growing industry. The new manufacturing plant is scheduled to begin production in mid-2017 and the company will recruit more than 1,000 employees. The new plant will reduce ground-transport cost of turbine components as it allows large offshore components to be loaded directly onto transport vessels. In this case, reshoring production and concentration of firm competencies releases capacity for Danish manufacturing to produce more on-shore wind turbines in Denmark.

Sources: 

Børsen,06 February 2017

Offshoring details
Offshoring location: 
Denmark
Offshored business function: 
Production
Offshoring governance mode: 
In house (in own facilities)
Offshoring entry mode: 
Wholly owned