My Journey to a Healthier Life

Siemens Energy said today it will add 825 workers to make gas turbines in a $135 million expansion that is Charlottes largest manufacturing announcement in years.

The German-headquartered Siemens already employs 780 people in Charlotte making and refurbishing turbines and generators for nuclear and steam power plants. Its 450,000-square-foot expansion will make and service turbines for natural-gas powered plants.

The 1,800 total workforce expected over five years will make Siemens the largest manufacturer in Mecklenburg County, Charlotte Chamber CEO Bob Morgan said.

The announcement by the company, Gov. Bev Perdue and local officials marks a milestone in the effort to create energy jobs in the Charlotte region.

Before Thursday, companies had announced plans for about 1,500 Mecklenburg County energy jobs since late 2007. Siemens broke ground last October on a $50 million expansion for 226 new engineers and manufacturing workers over five years.

Im excited to be known as the closer for the city of Charlotte and the county of Mecklenburg, Perdue said.

More jobs could follow, depending on the global demand for the turbines, said Michael Suess, CEO of Siemens Energys fossil power division.

What we are doing here is long lasting.” Suess said in an interview. “The process was as well long lasting. It was more than a year of looking around and screening what would be the best site. And then its not only one reason or one incentives package, its the trust we have in the people here, plus the trust we have in the political setup and the economical strengths of this community.”

Combining gas, nuclear and steam work at one manufacturing hub, Suess added, is a unique setup I dont have anywhere else.”

Natural gas is becoming a favored fuel as prices fall and domestic supplies expand. Duke Energy plans to build two new gas-fired plants in the Carolinas, along with its current expansion of a coal-fired plant west of Charlotte and hopes for a nuclear plant in South Carolina.

Dukes role as a customer of Siemens and energy provider for its Charlotte plant electricity costs are a key factor in industrial siting played a significant role in the expansion announced Thursday, company officials said. Duke has helped lead the energy-hub concept.

Its a great partnership, said Duke Energy Carolinas president Brett Carter. The dream (Duke CEO) Jim Rogers had of Charlotte being on the cutting edge of an energy hub is being realized. This is proof positive that you can start building a cluster from a simple idea.

Siemens Charlotte location is already its largest U.S. manufacturing plant. Its turbines, generators and other power plant components generate one-third of U.S. electricity.

Charlotte City Council and Mecklenburg County commissioners allocated to the expansion their full allotment of low-interest development bonds authorized under the federal stimulus act. The city pledged $44 million and the county $13 million.

Construction of the expanded plant will start in about three months, Siemens said, and be complete within about 18 months. The new plant will initially employ 660 workers, expanding to 825 over a few years. About 60 jobs will be relocated from a plant in Ontario, Canada and 50 from Florida.

The 350 new manufacturing jobs will pay about $40,000 a year, while designers, engineers and other professionals will average about $65,000 a year.

Headquartered in Erlangen, Germany, Siemens Energy employs 85,000 people worldwide. It reported fiscal 2009 profit of 3.3 billion Euros, or about $4.5 billion.

Subscribe to The Charlotte Observer & Earn Miles.