BERLIN, Oct. 31 (Xinhua) -- Siemens board member Cedrik Neike and Berlin mayor Michael Mueller (SPD) have signed an agreement on Wednesday for the industrial group to build a new development center in the German capital.
Siemens announced to invest up to 600 million euros (680 million U.S. dollars) in the construction of new offices, housing for staff, research laboratories as well as high-tech production facilities for start-ups on the historical industrial site in Berlin Spandau.
According to Siemens, Siemensstadt 2.0 - which translates to Siemens´ City 2.0 - is the single largest investment in Berlin yet to be made by the company.
Siemens chief executive officer (CEO) Joe Kaeser described the objective of the project on Wednesday as being to create a "networked ecosystem with flexible working conditions, societal integration and affordable housing."
Kaeser has recently announced a new program of corporate reforms which he said would lead to the decentralization of Siemens' sprawling industrial conglomerate and grant individual divisions more entrepreneurial autonomy.
From the perspective of Mueller, the fact that Siemens still remains dedicated to Berlin would be reflected positive impulses which the city would benefit from for the next 20 years. "New jobs will be created, the scientific location will benefit, and infrastructure will be further developed as well", the mayor predicted.
Although Siemens has since moved most managerial departments to Munich, the company was originally founded in Berlin and built its first major factories in an area of the city's Spandau district now known as Siemensstadt. Berlin is still the largest production center of the company with more than 11,000 employees.
Listed on the German DAX-exchange, Siemens recorded gross revenue annual revenue of 83 billion euros and employed 372,000 staff across the world.
