German industrial giant Siemens AG and Houston Mayor Annise Parker teamed up at City Hall to announce that Siemens' new oil and gas headquarters will call the Energy Corridor home.
Siemens said it will base its headquarters at the new West Memorial Place at 15375 Memorial Drive. Siemens will occupy nearly 29,000 square feet and move in about 100 employees this week. Siemens is headquartering its oil and gas, power generation and marine business units there.
The move is not a surprise with Siemens in the midst of acquiring Houston-based Dresser-Rand Group Inc. for $7.6 billion and already having stated that it wanted to expand its energy footprint in Houston. In making the deal, Siemens announced last year that Houston would become the headquarters of its oil and gas business. Siemens intends to retain the Dresser-Rand brand name and its executive leadership team.
The Dresser-Rand deal is expected to close later this year, although it is being investigated by the European Commission, the European Union's executive body, over competition concerns.
Dresser-Rand is currently cutting about 650 jobs during the ongoing oil slump.
Lisa Davis, member of the managing board at Siemens, said the agreement to expand in Houston brings Siemens closer to its upstream, midstream and downstream energy customers.
“Siemens’ expertise in automation, electrical systems, data analytics, and service combined with our existing portfolio, including Rolls-Royce industrial aero-derivative gas turbines, and our agreement to acquire Houston-based Dresser-Rand, fortifies our position as the most complete, end-to-end rotating equipment and process automation provider in the market today," Davis said in a prepared statement.
Parker also praised Siemens' commitment to the Houston region. Siemens employs nearly 2,000 people in the Houston area.