Siemens moves Ontario jobs south

Siemens Hamilton turbine closure signals a manufacturing shift, moving 60-Hz gas turbine production to Charlotte, U.S., cutting jobs, reducing shipping distances, and aligning with Siemens growth strategy, according to the Canadian Auto Workers.

Siemens AG is winding down gas turbine operations at its Hamilton, Ontario plant and shifting production to an existing facility in North Carolina.

The production of Siemens 60-hertz gas turbines at the Hamilton site will be phased out, the company said, even as it opens a wind operations center elsewhere.

The decision to close the turbine facility as of July 2011 will put 550 people out of work, according to the Canadian Auto Workers union.

The CAW, which represents about 350 of those affected, said workers are “reeling” from the news. It plans to fight the closure.

"Only two years ago, I toured this plant with the upper management of Siemens, where I heard all about how productive and valuable our members were to the Siemens operations. Now, it seems the company has performed a brash about-face and plans to dump a plant that has been in the city of Hamilton for more than 100 years," CAW President Ken Lewenza said in a statement.

A Siemens spokesperson was not immediately available for comment.

The move will see the U.S. city of Charlotte become the new global hub for Siemens’ gas and steam turbines and generators with production slated to start in the fall of next year.

“With this move, we’re pushing ahead with our growth strategy in the U.S., which is our most important single-country market,” said Peter Löscher, president and CEO of the German engineering and technology giant.

The company plans to spend a total of $130 million on expansion south of the border, and increase its investment in India as well.

The U.S. is the most important health-care market for Siemens, representing 40% of its total revenue. Moving the 60-Hz gas turbine plant to the U.S. will also reduce average shipping distances and related greenhouse gas emissions as expansions like a plant in Kansas do, Siemens said.

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