Transport

Siemens Mobility: ‘Partnering with Mermec to strengthen our position in the rail sector’

Michael Peter, Global CEO of Siemens Mobility: following the acquisition of Mermec, the German group aims to revitalise Ferrosud, export its diagnostic services and prevent breakdowns through digital technology

by Alessandro Cicognani

10 November 2026

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3' min read

Translated by AI

Versione italiana

3' min read

Translated by AI

Versione italiana

Mermec will be Siemens Mobility’s Italian hub. Following the acquisition, it is now time to get down to business, with the German group aiming to revitalise Ferrosud, export its diagnostic services and prevent breakdowns through digital technology. Michael Peter, global CEO, outlines the future of the acquired businesses: 430 million in revenue by 2025 and 1,700 employees. But the stakes go even further: from the modernisation of the Italian rail network to competition with China, and the future of European industry.

Why is Mermec so important to Siemens?

It provides us with expertise we were lacking: signalling systems for Italian railway lines, diagnostic trains – an area in which Mermec is a world leader – and a manufacturing base. We are strong in the metro sector, in Milan for example. We will now organise our new railway hub around Mermec. We are not buying into duplications, but rather growth opportunities.

On the subject of manufacturing: what could Ferrosud become in Matera?

It has a long industrial history and spare capacity. In the spring of 2027, we will bring one of our regional trains to Italia, showcase it to customers and gauge their interest. We want to explore this market, with a view to subsequently assembling those trains directly in Basilicata.

So can we expect new jobs? The trade unions are calling for guarantees.

Mermec is a growing company, and there is no overlap with our own activities. We want to continue creating opportunities and jobs. I have known the owner for five years; we have been discussing the takeover for two years, and the discussions have always centred on growth and employment.

Where do you see the greatest potential in Italia?

In terms of signalling. The ETCS programme, which enables trains to operate under a common European standard, covers 16,000 kilometres of the network in Italia, of which 4,000 kilometres are currently being fitted out. We want to secure a significant share of this market. It is a market growing by 6 per cent a year, compared with a global average of 4.5 per cent for rail transport. The technology makes it possible to run more trains on existing lines.

And what will change for Mermec outside Italia?

Our sales network can accelerate its development. Mermec already offers diagnostic trains in Germany, Switzerland, the United Kingdom and Singapore, where we have a strong presence. We will establish a global centre of excellence for diagnostics, which will also serve as our headquarters. It is a market that is growing by 7 per cent a year.

You have signed a 30-year maintenance contract with Italo; now it’s time for diagnostics. Is the group transforming itself from an industrial manufacturer into a provider of integrated services?

The future lies in data. Mermec trains monitor the condition of the tracks and overhead lines, whilst our systems collect information from passing trains. By integrating all this data into our cloud platform and using artificial intelligence, we can predict faults. It’s the same principle as locomotive maintenance: we know when they’ll need to be taken out of service and can prepare spare parts in advance. This is another reason why we’re building a service centre in Italia.

So how is your business model changing?

We have a turnover of around 13 billion and an order book of 65 billion. We are investing in production capacity, but not in factories that do everything. We are focusing on specialised, highly automated facilities and on digital train platforms that can be offered to multiple customers. Digital twins help us design vehicles that consume less energy. And in signalling, we want to move more functions from hardware to the cloud.

Is Europe managing to harness this potential?

It is our largest market, but also the most complicated. Every country has different rules, and type-approval takes far too long. If we really want trains to cross borders without hindrance, we need to simplify the authorisation process.

What about China? Is competition from its companies a cause for concern?

We can compete on equal terms. In Egypt, our technological bid for the 2,000-kilometre network was cheaper than the Chinese one. It becomes difficult when a tender also includes civil engineering works, because it is not easy to organise these in certain markets. We are calling for fair competition. And then there is the issue of security: railways are critical infrastructure. Europe must consider the origin of the software that controls trains capable of being updated remotely.

Apart from Europe, which markets are you keeping an eye on?

Asia for metro systems, North America for high-speed inter-city links, and the Middle East for new projects. And India, which has electrified 40,000 kilometres in five years: 95 per cent of its network is electrified, compared with 60 per cent in Europe. It is a huge market, but also a source of railway expertise that we draw on within our global organisation.