Siemens Reaps $1.3 Billion Order Boost From Brazilian World Cup
Siemens AG (SIE), Europe’s largest engineering company, said it has about 1 billion euros ($1.3 billion) in infrastructure project orders related to Brazil’s 2014 soccer World Cup and 2016 Olympic Games.
The investments include safety and building systems for the Mane Garrincha National Stadium in Brasilia, and energy management systems for the nation’s national grid operator, Siemens said in an e-mailed statement today.
Infrastructure and construction companies are promoting their credentials as they compete for orders from governments boosting spending on projects and stadiums for major sports events. Brazil is investing 30 billion reais ($14 billion) on World Cup projects. Russia and Qatar have earmarked $85 billion for investment as they will host the soccer world championships in 2018 and 2022 respectively.
“We want our infrastructure solutions to help make the events a success,” Paulo Stark, the head of Siemens’s Brazil operations, said in the statement. “These major events will speed up works in infrastructure laying the foundations of sustainable growth.”
A maximum of 20 percent of the total spending for events such as the World Cup goes toward stadiums, with at least 80 percent of the budget dedicated to projects such as new streets, rail networks, hotels, airports and security systems, Munich-based Siemens said.
Still, Siemens missed out on big rail projects in Brazil for which it had said it may bid after half of the 12 cities set to host matches scaled back their plans for integrated metro, light rail and bus systems amid delays and cost overruns. Among them is Sao Paulo, where a 2.8 billion-real monorail project was replaced with 318 million reais in road improvements.
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