Siemens Unveils State-of-the-Art Train Factory in Munich, Germany

On July 7, 2025, Siemens AG inaugurated its newly expanded train factory in Munich-Allach, heralded as one of Europe’s most advanced train production facilities. This facility represents a significant milestone in Siemens Mobility’s European service network, with an investment of approximately €250 million aimed at enhancing production capabilities and creating over 500 new jobs. The expansion increases the usable area of the factory to over 100,000 square meters, effectively doubling its capacity. This facility will produce Vectouro passenger cars alongside the widely regarded Vectron locomotive platform, marking a pivotal shift as Siemens consolidates its manufacturing of Vectron technology under one roof.

Roland Busch, CEO of Siemens AG, stated, “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.” The factory incorporates cutting-edge technologies including laser-guided installation, robotics, and AI-driven software solutions, reinforcing Siemens’ commitment to innovation and efficiency in rail manufacturing.

Michael Peter, CEO of Siemens Mobility, emphasized the strategic importance of the Munich-Allach site, noting that it will serve as the new headquarters for Siemens Mobility and house key business areas such as research and development, production, service, and management. This integration aims to foster rapid innovation and enhance customer service capabilities.

The expansion is expected to significantly boost Siemens Mobility's service capacity, tripling its ability to conduct locomotive overhauls and accident repairs from 25 to 80 annually by 2026. This enhancement will position the Munich-Allach facility as a leading competence center for heavy maintenance work, equipped with specialized workshops for bogies and wheelsets.

The workforce at Munich-Allach is projected to grow to over 2,500 employees by 2028, reinforcing the site's status as a regional economic engine. Karl Blaim, CFO of Siemens Mobility, remarked, “This growth initiative is a clear demonstration of Siemens Mobility’s firm commitment to creating and securing highly qualified jobs in Germany.”

Siemens' decision to expand its Munich facility aligns with broader trends in the rail industry, where there is an increasing demand for sustainable and efficient transportation solutions. According to the European Commission's 2024 report on rail transport, the EU aims to increase rail's share of total transport by 30% by 2030, which emphasizes the need for innovative manufacturing capabilities in the sector.

The Munich-Allach facility exemplifies Siemens’ vision of integrating digital technologies with traditional manufacturing processes to enhance operational efficiency and sustainability. The company plans to leverage AI and digital twins in its production processes, transforming traditional manufacturing approaches into a more innovative and responsive framework.

With its latest investment, Siemens Mobility not only strengthens its position in the rail market but also showcases the potential for advanced manufacturing in Germany. The facility’s capabilities are expected to attract further investment and talent to the region, enhancing Munich’s reputation as a hub for high-tech manufacturing and innovation in the rail industry.

In conclusion, the expanded Siemens facility in Munich-Allach is a significant step forward for the rail industry in Germany, illustrating the integration of advanced technologies in manufacturing and the commitment of Siemens to sustainable growth and innovation in transportation solutions.