DBT Bureau
Pune, 13 July 2025
Siemens celebrated the opening of its expanded train factory in Munich-Allach, one of the most modern train production facilities in Europe and a key location in Siemens Mobility’s European service network. Around €250 million has been invested in new buildings, state-of-the-art production facilities, and the expansion of AI-based software solutions since 2023. This development underscores the technology company’s commitment to Germany as a viable location for manufacturing and innovation.
The location’s expansion will create over 500 new jobs and increase the workforce to approximately 2,500 employees. On the factory’s doubled workspace, Vectouro passenger cars will also be produced along with the market-leading models of the Vectron locomotive platform. This marks the first time that Siemens will manufacture all products based on Vectron technology under one roof. The location will also triple its capacity for modern services. In addition, Munich-Allach will become the new headquarters of Siemens Mobility, and the location will bring together key business areas such as research and development, production, service, and management. By bundling competencies for integrated innovations and rapid implementation for its customers, Siemens is implementing a core element of its ONE Tech Company program.
“In Allach, Siemens is demonstrating how competitive manufacturing is possible in Germany today: with superior products, maximum automation, digitalization, and the use of artificial intelligence. With the software and digital services offered to customers through our open business platform Siemens Xcelerator, we are showing the way to networked mobility of the future,” said Roland Busch, CEO of Siemens AG.
“The expansion of our location in Munich-Allach into a global competence center and home of the new company headquarters combines efficiency and innovation. With an investment of around €250 million in modern production facilities, service capacities, and digital solutions, we are securing our competitiveness and further boosting our innovative strength. By combining AI-based applications and innovative production technologies such as laser-guided installation, robotics, and digital twins, we are transforming ‘heavy metal’ into ‘heavy AI’ and taking the rail industry in Germany to a new level,” commented Michael Peter, CEO of Siemens Mobility.
“Munich-Allach is a beacon of our innovation strategy and a prime example of German engineering. With over 1.2 billion kilometers in service, our Vectron locomotives clearly prove that premium products can be successfully manufactured in Germany. We are proud to be creating more than 500 additional jobs in the ‘Home of Vectron’ and to be consolidating central functions such as management, development, production, and service in one location. This move will secure our role as industry leader and strengthen the economic power of Munich and Germany,” said Karl Blaim, CFO of Siemens Mobility.
Production expansion & investments
By expanding the Munich-Allach facilities from 47,000 to over 100,000 square meters, Siemens has provided space for a substantial increase in production capacities. In the future, up to 385 Vectron locomotives and up to 180 passenger cars can be manufactured there per year. Munich-Allach will employ state-of-the-art technologies such as laser-guided installation, robotics, AI-enabled quality management, digital twins, and AI-based software development. The facility’s expansion strengthens Munich-Allach as a global competence center for the development, production and servicing of modern and sustainable rail vehicles – and will enable Siemens Mobility to respond faster and with greater flexibility to market requirements and increase efficiency.
Expanded Rail Service Center – capacity to triple by 2026
The Rail Service Center is being substantially expanded to enable it to handle up to 80 locomotive overhauls and accident repairs annually, up from 25 currently. When completed, the competence center for heavy maintenance work will have tripled its capacity to meet the rapidly growing market for high-quality service and fast response times. In addition to its four new service tracks, the new building includes specialized workshops for bogies and wheelsets. These investments are decisive for continuing to offer customers high-performance services and the shortest possible turnaround times. Completion of the new building is planned for 2026.
Along with the Rail Service Center, the service portfolio at Munich-Allach will be complemented by around 70 data and software specialists on site who will support international customers with their digital transformations by providing modular services and the Railigent X application suite. This unique bundling of expertise from production and service enhances and strengthens the role of the Munich-Allach plant as a holistic competence center and “Home of Vectron”.
Munich-Allach is growing: More than 2,500 employees by 2028
Siemens Mobility is moving its headquarters from Munich-Perlach to Munich-Allach. With the location’s expansion, over 500 new jobs will be created, primarily in technical areas such as welding, metalworking, mechatronics, and electrical engineering. By 2028, the location will employ over 2,500 people, strengthening Munich-Allach’s position as a leading regional center and providing a significant economic stimulus for the city and district of Munich and local industry. This growth initiative is a clear demonstration of Siemens Mobility’s firm commitment to creating and securing highly qualified jobs in Germany.
