Siemens AG (SIE.XE) said Wednesday that it has signed a memorandum of understanding, or MoU, with the Brazilian Trade and Investment Promotion Agency, known as Apex-Brasil, and will invest 1 billion euros ($1.24 billion) in the country during the next five years.
The German company said the MoU addresses Brazilian infrastructure shortcomings, particularly in energy, transportation and health care. The agreement will also focus on raising productivity to support competition among local industries.
In the next five years, Siemens will triple its investments in Brazil and focus on electrification, automation and digitization to promote social and economic development.
“With these measures being directed to key strategic areas, this could be an important catalyst for attracting up to EUR50 billion from other investors all over the country, creating up to 1.2 million jobs over the next five years,” said Andre Clark, chief executive officer at Siemens Brazil.
Siemens has invested over EUR1 billion in Brazil for the last 15 years in project implementation, production localization, research and development, as well as human resources and training measures. It currently employs almost 6,000 people in the country.