Siemens aims to capitalise on US shale

Just as GE look to conclude a deal to secure Alstom in France, Germany-based Siemens has responded by making its intention known to get involved in the US shale gas revolution.

CEO Joe Kaeser told a Berlin press conference that his company needed to do more to capitalise on the demand for shale gas and oil equipment stateside.
Siemens chief Joe Kaeser
“We have lost the active penetration, the active strategy development” in the American market, Kaeser told journalists after a press conference in Berlin. “We have to win that back with a strategic presence in the US.”

Bloomberg reports that the Munich-based company is also considering the acquisition of Dresser-Rand Group (DRC) and the Siemens board meanwhile visited the US early last year to assess new opportunities to capitalize on the boom in shale gas.

This week’s acquisition of Rolls Royce is also calculated to assist Siemens in its efforts to capitalise.

 “Siemens really had a portfolio gap to target the fracking industry,” Commerzbank analyst Ingo-Martin Schachel told Bloomberg. “After the Rolls-Royce deal they are pretty complete.”

While cutting jobs at its Berlin turbine factory, Siemens has added more than 1,000 positions at its plant in Charlotte, North Carolina as the shale boom drives demand for gas turbines. The U.S. is Siemens’s biggest national market, generating $19bn of the company’s $100bn in sales.

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