The 300,000-square-foot nacelle facility and an adjacent 80,000-square-foot service and repair facility will be built on more than 100 acres in Reno County, which is located northwest of Wichita on the Arkansas River.

The operation is expected to create an estimated 400 green-collar jobs and will be the first major wind turbine equipment factory in Kansas, which is ranked third in the U.S. for its wind energy resource potential.

The new Siemens facilities in Hutchinson will allow Siemens to better meet the strong demand for wind turbines in the Americas.

"The United States already is and will continue to be one of the world's fastest growing wind energy markets. We are thus intensifying our commitment to this green technology to further expand our leading global position in this field," stated Peter Loscher, CEO of Siemens AG.

"We are already the leading green infrastructure giant. And by making these investments, we will become even greener." With revenues totaling EUR 19 billion in fiscal year 2008, Siemens now has the world's largest portfolio of environmental technologies.

Hutchinson, Kansas, was selected after an extensive search and spirited competition between several finalist locations. Hutchinson is near the geographic center of the lower 48 states and offers a viable workforce and excellent transportation logistics.

The factory will include direct loading onto rail, which will provide easy access to project locations throughout the United States and Canada. Shipments can also be made utilizing the barge facilities at the Port of Catoosa, located 250 miles from the plant.

"The U.S. will require a diverse mix of environmentally compatible power generation sources to ensure energy security. President Obama's stimulus package, which included a three-year extension of the Production Tax Credits, sends an important market signal of the nation's commitment to renewable energy as part of the overall energy mix. By working together with former Kansas Governor Kathleen Sebelius and current Governor Mark Parkinson, the Kansas Department of Commerce, the officials of Reno County and the cities of Hutchinson and South Hutchinson, Siemens is increasing its already substantial commitment to the U.S. energy sector. As a result, we will be able to create hundreds of jobs within Siemens, and potentially hundreds more through our procurement of goods and services along the entire supply chain," said Randy Zwirn, head of Siemens Energy in the Americas.

"This is a win-win-win for Siemens, Kansas and our customers."

"We are excited to welcome Siemens to Hutchinson, Kansas. Siemens is a global leader and innovator in the production of wind turbines. Any time a company of this magnitude chooses Kansas, it speaks volumes about our business climate, our workforce and our prime location in the nation's Wind Corridor," said Kansas Governor Mark Parkinson.

"To help put Kansas back on the path to economic recovery, we must continue to attract renewable energy companies like Siemens to the state. Kansas should be a national hub of both the wind farms and the factories that manufacture turbine parts. This announcement from Siemens is a huge step in that direction."

Construction on the new nacelle production facility is expected to begin in August of 2009, and the first 90-ton nacelle is expected to be shipped from the factory in December of 2010. The nacelle is the structure that houses all of the components that generate electricity, including the gearbox, drive train and control electronics.

The nacelles that are made at the Hutchinson facility will be used for the company's reliable 2.3-MW wind turbine product family. Initially, the factory's planned annual output is approximately 650 nacelles - or 1,500 megawatts (MW). The service and repair facility is planned to start up sooner, using temporary space in the area until the new facility is completed.

"We've been operating our wind turbine blade manufacturing plant in Ft. Madison, Iowa, for two years, and we've already expanded the facility there," said Rene Umlauft, CEO of the Siemens Energy Renewables Division.

"This nacelle facility in Kansas means we are able to further expand U.S. dollar-based sourcing from qualified suppliers. It is our goal to reach greater than 90% U.S. dollar-based content by 2012 in order to better and more cost-efficiently meet the demand for our high-quality wind turbines in the U.S. Also, the expanded service presence will improve our responsiveness by being centrally located to key customers, and it will add capabilities in larger component repair."

Since entering the wind industry in 2005, Siemens has greatly expanded the capacities of its worldwide manufacturing network. In addition to opening and consequently expanding the wind turbine blade manufacturing facilities in Iowa, USA, and Engesvang, Denmark; the Danish facilities in Brande and Aalberg have been expanded and a new wind turbine R and D center in Colorado, USA, was established.

Siemens' global wind power business has grown from approximately 800 employees in 2004 to more than 5,500 today, a nearly 700 percent growth rate. In the U.S. alone, Siemens Wind Power has grown from zero employees in 2005 to more than 800 employees today, and the company plans to double that number in the next two to three years.

Its U.S. operations include a Houston-based wind turbine service operation, its 600,000-square-foot wind turbine blade manufacturing facility in Ft. Madison, Iowa, an R and D center in Boulder, Colorado, and its Americas headquarters in Orlando, Florida.

Siemens Energy provides power systems that generate more than one-third of the electricity in the U.S. Siemens employs more than 9,000 people in the energy sector and 70,000 people overall in the U.S. covering the energy, healthcare and industry sectors.

Finalization of the planned Siemens facility in Hutchinson requires approval of incentive agreements by local governing bodies, the State of Kansas, Siemens Energy, Inc. and its affiliate Siemens Shared Services, LLC Real Estate Division.

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