World Economic Forum (WEF)

Andrea Gillhuber,

Siemens Nanjing plant becomes Lighthouse Factory

The World Economic Forum has recognized the Siemens plant in Nanjing as a Lighthouse Factory. The factory was recognized for its AI-supported, fully digitalized production and significant improvements in productivity, quality and sustainability.

© Siemens

The World Economic Forum (WEF) has included the Siemens plant in Nanjing, China, in the Global Lighthouse Network. The award recognizes leading global production sites that achieve measurable operational improvements through the use of modern digital technologies. The plant was honored in the productivity category.

According to the WEF, the site impressed with the use of digital twins and a continuous, AI-supported transformation of production. The jury particularly highlighted improvements in costs, quality, use of resources and employee support. The Nanjing plant is the fifth Siemens site to receive this status, after Amberg, Erlangen and Fürth in Germany and Chengdu in China.

The plant is the first so-called "digital native factory" from Siemens. Planning, testing and optimization of the production processes were carried out completely virtually before construction began. This allowed the factory to be realized faster and more cost-efficiently, even under the conditions of the COVID-19 pandemic.

"We call our site in Nanjing a "digital native factory". It was designed, tested and optimized entirely in the virtual world, even before the first brick was laid. This approach not only allowed us to build the factory faster and with exceptional cost efficiency, but also to build it under the most challenging conditions of the pandemic. By combining our global manufacturing expertise with local know-how and a consistently digital mindset, we are continuously optimizing every part of the operation, making the factory one of the most efficient and flexible in the world," said Cedrik Neike, Member of the Managing Board of Siemens AG and CEO Digital Industries.

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The starting point for the transformation was increasing demands on flexibility and delivery times. The production lines had to be retooled every four weeks due to widely varying customer orders, while delivery times were reduced from 45 to ten days. To overcome these challenges, Siemens opted for a digital excellence strategy with end-to-end digital twins, modular automation, manufacturing operations management systems and more than 50 AI applications.

Compared to 2022, throughput times were reduced by 78% and time-to-market by 33%. Productivity increased by 14% by 2024, while field failures fell by 46%. At the same time, the plant reduced its direct and energy-related CO₂ emissions by 28%.

The 73,000 square meter site is Siemens' largest research and production center for CNC systems, drives and electric motors outside Germany. Within the Group, it is regarded as a reference project for digital manufacturing and sustainable industrial processes. The WEF Global Lighthouse Network was launched in 2018 and recognizes industrial companies that set new standards in productivity, resilience, sustainability and skills.

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