Join us on

Siemens

Siemens

Industry: 
Industry Conglomerate, Telecommunications
Value of USG Contracts: 
3200
Symbol: 
NYSE:SI
States: 
CA
CT
FL
GA
IL
MA
NJ
NY
PA
TN
TX
VA
Country: 
Germany
Contact Information: 


Sources: 

"A fresh round of talks between Iran and Germany’s Siemens was held in Tehran revolving around partnership in petrochemical industries during post-sanction era. Siemens AG company of Germany, after returning properties of Iran’s oil industry which had been blocked due to international sanctions, has launched new negotiations with Iran over petrochemical cooperation in the post-JCPOA period. Accordingly, delegation comprising high-ranking directors of the German firm have travelled to Tehran and held meetings managers of Iranian petrochemical industries as well as the Association of Petrochemical Industry Corporations (APIC). The main axes of talks between the two sides include expansion of bilateral ties as well as boosting activities of the German firm in Iranian petchem industries by equipment and supply of parts to technical and management systems." (Mehr, "Germans to build petchem plants in Iran," 08/21/2016). 

--

"A hoped-for export bonanza has failed to materialise a year after a deal to lift international sanctions against Iran over its nuclear programme, a German industry association [stated]...  'Despite increased foreign trade, there is a certain disillusionment,' Volker Treier, chief economist at the German Chambers of Commerce and Industry (DIHK), said. German exports to Iran had increased 11 percent in the first four months of 2016 to 890 million euros ($985 million), and likely stood at over one billion euros in the first six months, Treier said. That leaves a lot of ground to make up if firms are to match DIHK forecasts of 5.0 billion euros of exports annually within three years of the deal, mounting to 10 billion euros within five years... German carmakers and machine-tool builders were among the firms most avid to leap into the new market, where their products had been sought-after rarities until the deal came into force in January. 'Of course the expectations were high that trade with Iran would return to where it was in the old days,' Treier said, but 'we're far removed from that.' With many Western banks still reluctant to issue loans for deals involving Iran -- fearing to fall foul of continuing US sanctions against Tehran's financial sector -- cash to fuel the business is hard to find, the DIHK said. But some German household names are already making inroads into Iran's economy, with Daimler planning a factory to build Mercedes-Benz cars with two local partners, while Siemens has licensed gas turbines and power station generators to Iran's Mapna." (AFP, "German exporters say yet to see big payday from Iran trade," 8/8/2016)

--

"More than 200 professionals from the chemical, petrochemical and oil and gas sectors have joined Siemens at an event to launch an expanded technology portfolio for a stronger, more competitive industrial landscape in Iran. 'Iran is experiencing an industrial revolution and we have expanded our portfolio in the country to offer advanced technology, which allows our customers to significantly strengthen their businesses,' said Juergen Engert, Vice President of Process Industries & Drives and Digital Factory for Siemens Iran. 'At Siemens we are using our digitalization technology to combine the physical and virtual worlds of industrialization, helping our customers to be fast, efficient, reliable and competitive on a global stage. We have been a trusted development partner to Iran for decades, and we will continue to apply our knowledge, digitalization technology and ingenuity in the interests of a sustainable, diversified economy.'" (Tehran Times, “Siemens launches expanded technology portfolio for process, manufacturing industries in Iran,” 6/13/2016)

--

"Iran and the German equipment manufacturer, Siemens, have reached an agreement to build a big new power plant in Northern Tehran. According to the Iranian officials, the agreement was made during negotiations by Iran's economic delegation in visits to Poland, Finland, Sweden and Latvia, Deputy Head of Andoukhteh Shahed Institute's Board of Directors Seyed Mohammad Reza Ayatollahi said on Wednesday. 'The agreement for cooperation with Siemens will be inked soon,' he added, noting that the German company will finance the big power plant in Damavand city... In a relevant development in March, the Iranian industrial group MAPNA and the German equipment manufacturer, Siemens, signed a contract worth $3.5bln, a trade official announced." (Fars News Agency, “German Siemens Company to Finance Construction of Major Power Plant in Iran,” 6/8/2016)

--

"Like many other international companies, Bombardier Inc. and Siemens AG are willing to develop their activity in the Iranian market in the post-sanction time, although they consider banking barriers, which are still in place, an obstacle getting in the way…" (Tehran Times, “Bombardier, Siemens willing to boost share of Iran market,” 5/16/2016)

--

"Iran and Germany have signed some memorandums of understanding (MoUs) on cooperation in sectors of oil and natural gas. The MoUs were sealed by the National Iranian Oil Company (NIOC), Tehran-based Oil Turbo Compressor Company (OTC) and Germany's Siemens. NIOC chief Rokneddin Javadi and OTC director Sa'eed Mohtadi struck the energy cooperation deals with Siegfried Russwurm, member of the managing board of Siemens AG and its chief technology officer, IRNA reported. Under the agreements, the parties involved will work jointly to overhaul equipment and facilities at Iran's oil operations and refineries and also to develop higher-capacity turbines used in the industry. IRNA added that Siemens on Tuesday singed a separate MoU with Iran's National Gas Company to develop compressors and increase the existing system's output capacity." (Press TV, “Iranian, German companies ink MoUs on gas, oil,” 5/4/2016)

--

"Siemens revised upwards its valuation of its backlog of orders from Iran on Wednesday, citing resurgent business prospects in the country following the easing of international sanctions. The German industrial group, present in Iran since it built the Indo-European telegraph in the 19th century, said the revaluation had boosted second-quarter revenue by 174 million euros ($200 million) and profit by 130 million euros. 'This is a one-off effect due to the resurgence of business expectations,' Chief Financial Officer Ralf Thomas told reporters on a conference call. 'The backlog can be worked through because the sanctions have been lifted.' The revaluation partially reverses a 2012 writedown of the value of its Iranian business after restrictions were tightened, causing a hit of 347 million euros to its profit. Munich-based Siemens maintained an office in Tehran throughout sanctions regimes imposed by the United Nations, United States and European Union over Iran's nuclear ambitions. Having reluctantly stopped all new business in Iran in 2010, it has been quick to seize opportunities since sanctions were eased in January and was the first major German company to agree a deal with Iran this year. Siemens signed memoranda of understanding in March on rail infrastructure and gas equipment projects potentially worth billions of euros, as well as an energy agreement with Iranian power and infrastructure group Mapna... Siemens stopped doing new business with Iran in 2010 but continued to service existing contracts as long as they did not contravene sanctions. Siemens had been slammed for selling telecoms equipment that was used to spy on dissidents in Iran." (Reuters, “Resurgent Iran prospects lift Siemens results,” 5/4/2016)

--

The CEO of the Siemens' Power and Gas Division, Willi Meixner, presented at the Iranian Petroleum and Energy Club (IPEC) Congress, held in Tehran October 19-21, 2015. (IPEC Congress 2015 Program)

--

"Iran is ready to carry out swap deliveries of Azerbaijan’s oil to the Persian Gulf region, the Iranian Oil Minister Bijan Namdar Zanganeh said. He made the remarks Aug. 4 in Tehran addressing a meeting with Azerbaijan’s Economy and Industry Minister Shahin Mustafayev... The minister also said Iran has extensive experience in the production of petroleum equipment. 'Iran is producing Siemens turbines. We are ready to cooperate with Azerbaijan in the joint manufacture of oil equipment,' he added. The minister said Iran is ready to produce oil equipment in Azerbaijan." (Trend, "Iran offers Azerbaijan to supply oil to Persian Gulf," 8/4/15)

--

"'The Kaiser' [President Joe Keizer], in remarks television Bavarian Tuesday evening: 'We are talking here about 80 million people in need of power supply and also of course to health supplies and want to stand on their feet in the oil and gas sector. Here there are also opportunities and possibilities.'... 'I think it should not be hasty in this matter. Prudence is required here.'" (Standard Republic, "'Siemens': There are opportunities for our company to invest in Iran," 7/23/15)

--

"Minister of Petroleum Bijan Zangeneh says Iran plans to splash out $180 billion to revive and renovate its oil, gas and petrochemical industries by 2022. Addressing an energy security summit in Berlin, the minister said Iran has always been a reliable energy supplier, adding the country wants to regain its position in the energy market... Zangeneh held important talks with German leaders, including Energy Minister Sigmar Gabriel on Thursday. The minister was reportedly set to hold more talks with energy giants, including Siemens, Linde and Lurgi, about the release of Iranian LNG equipment and parts seized by German companies under the European sanctions regime. According to Zangeneh, Germany was Iran's prime energy partner in the downstream oil industry as well as its petrochemical, refinery, turbines and industry parts sector before sanctions. The three energy companies have a history of two decades of operation in Iran's giant South Pars gas projects." (Press TVIran plans $180 billion energy investment, 5/7/15)

--

"In downtown Tehran, the German electronics powerhouse Siemens AG opens and closes for business each day. But since 2010, no new business has been done there. 'You walk in the door and the staff will tell you, 'We are keeping the office open until the Iranian sanctions are lifted,'' says Michael Tockuss, managing board member of the German-Iranian Chamber of Commerce Association, in Hamburg, Germany. 'People forget that many companies, like Siemens, have a history with Iran that goes back more than 100 years. They stick to the rules, but they keep up the relationship.' For Big Oil, the payoff for keeping up the relationship could be enormous, which is why oil multinationals are discreetly, but assiduously, courting Iran's oil ministry... In recent months, traffic to Iran from Europe and the United States has doubled, says Sina Makki, chief executive of the Tehran office for HRG Worldwide, a British global travel company catering to business executives. 'We have seen a lot of executive delegations from Europe-Germany, Italy, France and also England-particularly from Frankfurt, which has direct flights to Iran. I have also been surprised by the number of people coming from the U.S. over the past two months,' he says. The executive delegations include oil companies, Makki told Newsweek, though he declined to name specific firms." (Newsweek, "Iran Is being Courted by European Business and Big Oil," 4/27/15)

--

"Last week, Qorbani announced that Benz, Volkswagen, Volvo, Fiat, Rover, Skoda, Renault, Peugeot, Kia and Toyota would take part in the Iranian auto expo, adding that the US car-manufacturers would also join the event. 'In case of desirable conditions, General Motors and Ford companies will also attend the event.' He continued that some leading car parts makers, including Siemens, FORD Mendo, Busch, FRW and ACI would attend the gathering. The event will start work on December 10." (Fars News, "55 Giant Int'l Carmakers, Part-Makers to Participate in Iranian Auto Expo," 11/2/14)

--

"At least five companies with U.S. government contracts were in Tehran last week to attend the Iran Oil Show, a several day conference that enables international corporations to hobnob with top Iranian officials and plan for a full return to Tehran’s lucrative energy market, according to an analysis of the 600 companies that attended the oil expo. At least 20 of the companies in attendance at the oil show maintain a U.S. presence or have contracts with the U.S. government, eliciting concern from watchdog groups that these companies could be helping Iran breach U.S. sanctions…The overwhelming attendance at this year’s Iran Oil Show—a reported 300 percent increase over past years—serves as another sign that the Obama administration’s recent rollback in sanctions on Iran has been viewed as a green light to reenter the Iranian marketplace…'It is a telling indication of the weakening of the international sanctions regime when firms with U.S. presence and U.S. government contracts openly publicize their attendance at an exhibition for Iran’s most heavily sanctioned sector,' said Matan Shamir, research director for the advocacy group United Against Nuclear Iran (UANI), which has been closely tracking and publicly admonishing those companies seeking to do business with Iran. Energy and electrical giant Siemens, which maintains a large U.S. presence, and the French energy company Total, which also has a large U.S. presence, were both reportedly in attendance. Siemens has received more than $3 billion in government contracts with the Department of Veteran Affairs, the Pentagon, and DHS, among others. Total has been awarded more than $2 billion in contracts with the Pentagon, DHS, and the Treasury Department. Other government contractors that attended the Iran Oil Show include: the manufacturing firm Leoni, which has had around $82,000 in government contracts; the industrial firm Nexans, which has had more than $157,000 in contracts; and pump manufacturer Nikkiso, which has had more than $118,000 in contracts.” (Washington Free Beacon, “U.S. Government Contractors Attend Iran Oil Show,” 5/14/14)

--

"Iran's annual oil and gas fair opens in Tehran on Tuesday, with 600 foreign companies seeking to position themselves for a return to large-scale operations if international sanctions are lifted…Regional representatives from France's Total and the German conglomerate Siemens are among 600 foreign companies registered for the International Oil, Gas and Petrochemical Refining Exhibition, according to government officials. The number is three times higher than in 2013, Nematollahi Akbar, a spokesman for Iran's Oil Ministry, told AFP, noting that 1,200 Iranian firms will attend, up 50 percent. ‘Total and Siemens will be represented by their regional officials and Chinese companies are present this year,’ Akbar said.” (AFP, “Iran tests foreign interest with oil fair,” 5/6/14)

--

"When it comes to U.S. sanctions on Iran, no detail is too small to overlook these days. Since February, publicly traded companies have filed nearly 500 disclosure forms about their business ties to Iran…Not all of the disclosures are trivial. On Nov. 27, for example, Siemens reported that a French affiliate had fixed a smoke alarm on an Iranian passenger plane — but also disclosed that it sold 23 diesel electric locomotives worth $56 million to an Iranian firm that resold them to the state-owned railway." (Washington Post, "Under new law, companies disclosing even tiniest dealings with Iran," 12/4/13)

--

"While Western powers have identified a small group of sectors for Iranian sanction relief, a much wider set of European and U.S. companies—from pharmaceutical firms and medical-equipment makers to food companies and traders—also stands to regain lost Iranian trade as soon as relief measures are formally adopted next month…Siemens AG, meanwhile, may now also be able to send in more medical devices…German industrial company Siemens said in U.S. Securities and Exchange Commission filings covering the fiscal year ended Sept. 30 that it realized sales into Iran of €49.8 million in the period, of which €7.5 million were from cancer scanners and other medical equipment. It said, though, it was forced in 2012 to halt new business for its health-care divisions and other sectors in Iran, and would only fill existing orders. It cited tightening financial sanctions and Iran's economic crisis as making it harder to get paid. A Siemens representative said it 'doesn't want to speculate about possible outcomes [of the nuclear pact] and their implications.'" (Wall Street Journal, "Iran Deal Opens Door for Businesses," 12/1/13)

--

"The drone that penetrated deep into Israeli airspace nearly two weeks ago was manufactured in Germany by Siemens and Bockstiegel, and purchased by a fictitious Iranian company that was a front for Iran’s Islamic Revolutionary Guard Corps (IRGC), the Lebanese newspaper Al-Jumhuriya reported on Wednesday. According to the report, Siemens manufactured the drone’s camera and remote control parts while Bockstiegel, which produces ships, provided light metal parts." (The Times of Israel, "Hezbollah drone reportedly manufactured in Germany," 10/17/2012)

--

"A year after German engineering giant Siemens AG pledged to retreat from Iran under international pressure, it is grappling with a thorny problem: a big jump in revenue in the Islamic republic. Siemens has kept a promise not to pursue new projects in Iran. But its existing contracts there underscore how international efforts to curb Tehran's nuclear ambitions have had only limited impact on the state's ability to draw on the technology and expertise it needs to maintain its broader infrastructure. The company's Iranian business also shows how Tehran depends on a powerful tool to maintain its commercial ties to foreign companies. The rules that govern international commerce make it tough for Siemens to sever ties with Iran even if it wanted to. 'Otherwise we could be accused of breaching contracts and face compensatory damages,' Siemens CEO Peter Löscher said at the company's shareholder meeting in January. The U.S. State Department and the European Union declined to comment on Siemens' business in Iran. In Siemens' last fiscal year, which ended Sept. 30, the company's revenue in Iran rose more than 20% to about €680 million ($967 million) from the year before and more than 50% over a two-year period, said people familiar with the matter. Revenue for this year is still unclear." (The Wall Street Journal, "Siemens' Business Surge in Iran," 4/5/11)

--

Over the last three presidential administrations, the United States government has granted Siemens 50 special licenses to do business in Iran. (New York Times, "Companies with Permission to Bypass Sanctions," 12/24/10)

--

"This license authorized the company to export ultrasound equipment to Iran; the names of the purchasers were redacted by OFAC." (New York Times, "Licenses Granted to U.S. Companies Run the Gamut," 12/24/10)

--

"Nokia-Siemens Networks on Wednesday, June 2 admitted its share of the blame for Iran's brutal crackdown on anti-government demonstrators last year after selling mobile phone surveillance to the authoritarian regime.

The Finnish-German telecoms joint venture was at the centre of an ethics controversy last year when it emerged that it had supplied surveillance technology to two Iranian mobile phone operators. The technology was used to track down dissidents amid the mass protests following the contested re-election of President Mahmoud Ahmadinejad in June 2009.

Apart from the crackdown on demonstrators, which saw 36 confirmed deaths, Iranian authorities blocked websites such as Twitter and Facebook, jammed and tracked cell phone calls and text messages. They used the so-called monitoring centre acquired from Nokia-Siemens in 2008 to carry out the work."

(Businessweek.com, "Nokia-Siemens Rues Iran Crackdown Role," 6/3/2010)

--

"Siemens, a sprawling conglomerate involved in everything from engineering to health care, entered the Iranian market in 1974. In 2008, Nokia-Siemens, a joint-project with Finnish telecom Nokia, provided Iran's state-owned telecom company with technology that allowed it to intercept the internet communications of its citizens. The sale prompted controversy, though the technology is also required by Western countries. Siemens, separate from Nokia-Siemens, also is a large federal contractor and received several contracts stemming from the Obama administration's economic stimulus package while operating in Iran. In February, Siemens announced it would pull out of Iran." 

From 2000-2009, the company was a recipient of $.3.2 billion US federal funds.  They have withdrawn their business investments in Iran.  (The New York Times, "Profiting from Iran, and the US," 3/6/2010)

--

"German engineering conglomerate Siemens (SIEGn.DE) said on Tuesday it would reject any further orders from Iran as world powers consider imposing wider sanctions on Tehran over its disputed nuclear activity...

Siemens, which is Europe's biggest engineering conglomerate, was aware of the sensitivities attached to doing business in Iran, Chief Executive Peter Loescher said. 'Some time ago, we reduced our business activities with customers in Iran,' Loescher said, responding to questions at a shareholders meeting.

 The Siemens board decided at the start of October not to agree to any further orders with customers in Iran, he added, noting, however, that existing orders would be fulfilled.Loescher said there were still bids submitted by Siemens before October 2009. If they were not accepted, it would mean new business in Iran would end by mid-2010.

 Siemens, which makes high-tech machinery as well as domestic appliances, generates an annual 500 million euros ($704.5 million) in sales from Iran, which last year represented 0.7 percent of the firm's overall sales." (Reuters, "Siemens Says to Reject New Orders from Iran," 1/26/10)

--

Through 2010, Siemens signed key oil and gas-related contracts with Iran. In April 2010, the Tehran Times reported that Siemens signed a contract with the Lordegan Petrochemical Company of Iran to manufacture equipment for its petrochemical complex. 

 Prior to that, Siemens reportedly signed a $1.44 billion deal to build 100 gas turbo-compressors for the National Iranian Gas Company. (AFP, “Iran in billion-euro gas deal with Germany" 1/20/10).

--

In correspondence with the SEC in March 2009, Siemens revealed:

At present, we have direct or indirect majority ownership interests in three Iranian subsidiaries, and minority ownership interests (20% and 4.9%, respectively) in two Iranian companies. In Iran, we are mainly engaged in providing goods and services to organizations in the public power generation, power transmission, public transportation and healthcare fields. The main part of our business in Iran is conducted by our Energy Sector, although we also have some activity in our Industry Sector and, to a much smaller extent, our Healthcare Sector. Unsurprisingly, given our business focus, much of our business in Iran is for government-controlled agencies and enterprises. We estimate that, in fiscal 2008, approximately 80% of our EUR 438 million in sales in Iran came from the Iranian government or entities controlled by it, with most of those sales in the Energy Sector. In the Energy Sector, we offer gas and steam turbines and generators, with an emphasis on combined cycle gas and steam power plants that serve the public electricity grid. We supply products and solutions for the production, transport and processing of oil, gas and water, which are used in the oil and gas industries as well as other industries.

Industrial and engineering conglomerate. Pledged in January 2010 that it would stop pursuing business in Iran and wind down existing contract. Instead, company’s Iran business surged to nearly $1 billion—more than a 50% increase over a two-year period.