Siemens’ manufacturing site in Nanjing, China, has been recognized as a Global Lighthouse Factory by the World Economic Forum, joining the Forum’s Global Lighthouse Network. The facility was cited for its exceptional performance in cost and quality, which is attributed to the use of digital twins and AI-led changes to operations. This is the fifth Siemens manufacturing site to join the network, with other locations including Amberg, Erlangen, and Fürth in Germany, and Chengdu in China.
The Nanjing plant is described as a “digital-native factory,” meaning it was planned and simulated digitally before construction began. This approach enabled the company to construct the factory quickly and efficiently, even under pandemic conditions. The facility spans 73,000 square meters and is Siemens’ largest research and production center outside of Germany for CNC systems, drives, and electric motors.
To adapt to shifting demand and fulfillment expectations, the factory reworked its production processes, changing production line configurations every four weeks. Delivery windows were also narrowed from 45 days to 10 days, despite fluctuations in demand. The World Economic Forum’s jury reviewed the site’s continuous digital transformation and noted the use of AI applications, including over 50 deployed at the site.
Siemens introduced a digital excellence strategy for high-variety, low-volume manufacturing, which included end-to-end digital twins, modular automation, and manufacturing operations management systems. The company reported significant improvements, including a 78% reduction in lead times, 33% decrease in time-to-market, and 14% increase in productivity by 2024. Quality and sustainability metrics also showed improvements, with a 46% drop in field failures and 28% cut in direct and energy-related carbon emissions.
The World Economic Forum launched the Global Lighthouse Network in 2018 to recognize industrial sites that demonstrate performance gains in areas such as productivity, supply chain resilience, and sustainability. Siemens has positioned the Nanjing factory as a reference site for its approach to digitally planned manufacturing, using virtual planning and simulation as a basis for optimization ahead of construction. The company expects further changes at the Nanjing site as it continues its digital transformation and roll-out of AI applications across factory operations.