V-ECON Audit: Siemens

Supply Chain & Sourcing Relationships

• Siemens contracted Extal Ltd. for $4 million in aluminum parts from Mishor Adumim industrial zone, located in a settlement industrial area, with the Israeli Ministry of Economy facilitating this relationship in 2019 ¹.
• Siemens PLM software (Teamcenter, Solid Edge, FLOEFD) is licensed through Israeli reseller McKit Systems to Israeli Ministry of Defense, Elbit Systems, Israel Aerospace Industries (IAI), and RAFAEL, with IMOD contracts exceeding $1 million between November 2023 and June 2024 ¹.
• No public evidence identified of Siemens holding commercial relationships with Israeli agricultural aggregators or exporters such as Mehadrin, Hadiklaim, Galilee Export, or Agrexco, as Siemens’ capital goods and technology business model does not involve fresh produce procurement.
• No public evidence identified for indirect sourcing of Israeli-origin products through third-party intermediaries.
• No importer-of-record structure applies, as Siemens is a technology exporter to Israel rather than an importer of goods from the region.

Product Origin, Labeling & Regulatory Compliance

• No regulatory actions, DEFRA advisories, or EU enforcement actions have been identified against Siemens related to settlement-origin goods ¹.
• No public evidence identified of Siemens maintaining a corporate policy addressing country-of-origin labeling for goods from occupied territories.
• Industrial automation equipment, rolling stock, and medical imaging systems—the primary product categories—are not subject to country-of-origin food labeling regimes, making this category not applicable to Siemens’ product portfolio.

Investment, Capital & Financial Exposure

• Siemens operates multiple wholly-owned subsidiaries in Israel, including Siemens Israel Ltd. (registered 2000), Siemens Energy Ltd. (reg. no. 511769101), Siemens Industry Software Ltd. (reg. no. 510867161), and Siemens Healthineers Israel ²³⁴⁵.
• Siemens operated the Next47 venture capital arm with a Herzliya office opened in January 2020, investing $5 million to $35 million per round in B2B companies with $1.2 billion under management; no confirmation of closure or current operational status post-2020 has been found ⁶.
• Siemens AG is a German publicly listed Aktiengesellschaft (DAX) with largest institutional shareholders including BlackRock (~5-6%), Vanguard (~4%), and DWS (~3-4%) ⁷.
• No Israeli-domiciled entity holds a controlling stake in Siemens AG; the Siemens family and Siemens Stiftung hold non-controlling legacy stakes ⁷.
• No public evidence identified of Siemens AG holding Israeli sovereign bonds, Israeli-domiciled equities, or Israel-focused investment funds as disclosed portfolio positions.
• Siemens Healthineers partnered with Israeli startup Scopio Labs in June 2023 for digital imaging distribution in Israel ⁸.

Operational Presence & Market Activity

• Siemens Israel Ltd. maintains offices in Tel Aviv and Rosh HaAyin ²⁸.
• Siemens Healthineers Israel operates from Hamelacha Street, Rosh HaAyin (Industrial Park Afeq) ⁵⁹.
• Approximately 800 staff are employed across all Siemens entities in Israel ².
• Siemens won a 2018 tender for approximately NIS 4 billion for 330 electric train cars for Israel Railways, including the A1 line that crosses the Green Line into occupied West Bank territory, with the contract becoming operational December 2021 ¹⁰¹.
• The 2017 framework agreement covered 60 train sets plus 15-year maintenance (extendable to 29 years), with an additional order for 81 more trains bringing the total to 834 cars ¹⁰¹.
• Siemens Mobility won a contract in 2021 (reported value €180-220 million) for Mireo tram-train rolling stock for the Jerusalem Light Rail expansion, with the network including lines routed through East Jerusalem designated as occupied territory under international law ¹¹.
• Historical partnership (1999-2005) with Israel Electric Corporation for turbine contracts resulted in a 2016 FCPA settlement where Siemens paid NIS 160 million ($43 million) to settle bribery charges involving six IEC executives ¹².
• Siemens states (Siemens Israel CEO, 2016 company press release) that approximately 40% of Israel’s power-generation capacity is based on Siemens technology; the same announcement confirmed turnkey industrial power-plant orders (Alon Tavor and Ramat Gabriel) built around Siemens SGT-800 gas turbines and SST-300 steam turbines ¹³. (The figure is an installed-capacity-based-on-Siemens-technology statement, not a claim that Siemens generates 40% of Israeli electricity.)
• Siemens was selected as the preferred bidder in March 2020 for HVDC converter stations for the Great Sea Interconnector (EuroAsia), an undersea cable connecting Israel, Cyprus, and Greece, which would connect Israeli grid infrastructure to the EU including through infrastructure in Occupied Palestinian Territory ¹⁴¹⁵.
• Israel is not identified as a named strategic growth market in Siemens AG Annual Reports; Israel falls within the Europe/C.I.S./Africa/Middle East regional segment with no standalone revenue disclosure ¹⁰¹.

Corporate Structure & Foundational Ties

• Siemens AG was founded in Berlin, Germany in 1847 by Werner von Siemens with no Israeli founding origin or Israeli-incorporated acquisition forming core identity ⁷.
• Siemens AG is legally domiciled and operationally headquartered in Munich, Germany, with a secondary registered office in Berlin; no dual or legacy headquarters exists in Israel ⁷.
• No Israeli government ownership stake in Siemens AG has been identified; no Israeli government board appointees serve on the Supervisory Board ⁷.
• Siemens holds active contracts with Israeli state entities including Israel Electric Corporation (historical and ongoing grid modernization), Israel Railways (rail infrastructure), NTA Metropolitan Mass Transit System (Jerusalem Light Rail), and Israeli Ministry of Health (medical equipment via Healthineers) ¹⁰¹²⁵.
• The subsidiary structure includes Siemens Israel Ltd. (wholly owned), Siemens Energy Ltd. (Israel), Siemens Industry Software Ltd., and Siemens Healthineers (~75% owned by Siemens AG as a separate legal entity) ²³⁴⁵.
• Siemens Energy AG maintains below 25% ownership by Siemens AG following its 2020 spin-off, operating as a separate listed entity ⁷.
• No public evidence identified of any Israeli government ownership, golden shares, or charter restrictions tied to foreign state policy at Siemens AG.

Profit Repatriation & Economic Contribution

• Siemens AG does not disclose standalone Israel revenue; Israel is subsumed within the Europe/Middle East/Africa regional segment ¹⁰¹.
• The Jerusalem Light Rail contract (reported €180-220 million) and Israel Railways contract (NIS 4 billion) represent discrete project revenues not disclosed as annual figures ¹⁰¹¹¹.
• Siemens Israel Ltd., as a wholly-owned subsidiary, repatriates dividends to Munich under standard multinational treasury arrangements; direction is German parent to Israeli subsidiary, with no Israel-to-Germany profit flow anomaly identified in public reporting.
• Who Profits identifies Siemens as a significant infrastructure provider to Israel’s rail, electricity, and building-technology sectors, with Israel Railways and Jerusalem Light Rail contracts constituting material infrastructure contributions ¹⁰.
• No formal “sector anchor” or “strategic partner” designation has been found in Israeli government or industry reports for Siemens ¹⁰¹.
• Siemens stated to Who Profits (February 2024) that it is “acting as a supplier, not involved in construction of A1 line” and that legal review concluded the transaction was “in line with human rights due diligence” ¹⁰¹.

End Notes