Forensic Economic Footprint Assessment: Siemens AG and Affiliated Entities in the Israeli Market
1. Executive Intelligence Summary
1.1 Scope and Mandate
This forensic audit has been executed in accordance with the specific directive to map the economic footprint of Siemens AG (the “Target”) within the State of Israel and the Occupied Palestinian Territories (OPT). The primary objective is to document and evidence the corporate structure, operational conduct, and supply chain relationships that may materially or ideologically support the occupation of Palestine, the settlement enterprise, or the apparatus of militarization and surveillance.
The methodology employed adapts standard forensic supply chain auditing frameworks—typically applied to agricultural aggregators (“fresh produce”)—to the complex operational reality of a multinational industrial conglomerate. Where the core intelligence requirements call for the identification of “Aggregator Nexus” risks in high-risk crops (Medjool Dates, Avocados), this audit transposes that requirement to Industrial Component Aggregation, specifically searching for the integration of settlement-manufactured goods into the Target’s global value chain. Similarly, “Seasonality Analysis” is recalibrated to examine Fiscal Tender Cycles and Conflict-Response Procurement, analyzing whether the Target’s engagement with state security actors fluctuates in correlation with periods of intensified military conflict.
This report presents the evidentiary basis required for a subsequent determination of “Economic Complicity.” It strictly adheres to a fact-based reporting standard, detailing corporate entities, contract values, geographic coordinates of infrastructure, and supply chain flows without assigning a final complicity score or legal verdict.
1.2 Summary of Evidentiary Findings
The audit has isolated significant data points confirming High Proximity operations and Strategic Foreign Direct Investment (FDI) across critical infrastructure sectors:
●Settlement Sourcing (The Industrial Aggregator Nexus): Forensic review confirms the Target’s subsidiary, Siemens Mobility, contracted with Extal Ltd., a manufacturer located in the Mishor Adumim Industrial Zone (an illegal settlement in the West Bank), for the supply of aluminum profiles. This procurement was driven by Israeli “reciprocal procurement” regulations.1
●Infrastructure of Occupation (The Mobility Vector): The Target is the primary supplier of rolling stock (Desiro HC trains) and maintenance services for Israel Railways, specifically for the A1 High-Speed Line. This infrastructure crosses the Green Line into the occupied West Bank.1
●Surveillance Support (The Carceral Vector): The Target’s technology (fire detection and security systems) is maintained in Israel Prison Service (IPS) facilities, including Gilboa Prison, via the local distributor Orad Group.4
●Militarization (The Defense Vector): Direct evidence exists of software license renewals (Teamcenter, Solid Edge) with the Israeli Ministry of Defense (IMOD) during the active conflict period of late 2023 and 2024.1
●Strategic FDI (The Investment Flow): The Target maintains wholly-owned subsidiaries and R&D centers (e.g., Mentor Graphics, Siemens Dynamo) that extract intellectual property from the Israeli high-tech sector, distinguishing its presence from simple trade.6
.2. Methodology: Adapting the Supply Chain Audit
2.1 The Aggregator Nexus: From Agriculture to Industry
The initial intelligence requirement necessitated a check for sourcing from entities such as Mehadrin or Hadiklaim, specifically for crops like Medjool dates and avocados. As the Target is an industrial technology conglomerate, this specific agricultural check yields a null result in the primary sense. Siemens does not trade in fresh produce.
However, the logic of the Aggregator Nexus—identifying a central node that collects goods from disparate sources, including settlements, and obfuscates their origin—is fully applicable to industrial manufacturing. In this context, the “High-Risk Crops” are replaced by High-Risk Industrial Components (e.g., aluminum profiles, plastic injection molding, electronic components). The audit focused on identifying Israeli suppliers located in Industrial Zones such as Mishor Adumim, Barkan, or Ariel West, which function identically to agricultural settlements in terms of land appropriation and economic normalization.
2.2 Seasonality Analysis: Fiscal and Conflict Cycles
The requirement to check for “Winter Sourcing” (Dec-April) is irrelevant to industrial goods, which are governed by long-term contracts rather than harvest seasons. Consequently, the audit applied a Conflict Seasonality filter. This involved cross-referencing contract dates—specifically government tenders and software license renewals—with periods of kinetic military activity (e.g., the period following October 7, 2023). This analysis reveals whether the Target pauses or accelerates its support during periods of heightened violence.
.3. Corporate Structure and Importer Status
To establish “High Proximity,” the audit must determine if the Target operates through third-party distributors or wholly-owned subsidiaries. The latter indicates a deeper commitment, full operational control, and direct liability.
3.1 Wholly-Owned Subsidiaries: The Importer of Record
The Target operates a multi-layered corporate structure in Israel, ensuring it acts as its own “Importer of Record” for the vast majority of its operations. This status allows the Target to bypass intermediaries, engage directly in government tenders, and maintain a permanent physical footprint.
3.1.1 Siemens Israel Ltd.
●Legal Status: Private Limited Company.
●Ownership: Wholly owned subsidiary of Siemens AG.7
●Headquarters: 13 Amal Street, Rosh Haayin (Afek Industrial Park).9
●Operational Scope: This entity is the primary contracting party for local operations. It manages the sales and service of industrial automation, smart infrastructure, and mobility solutions. By incorporating locally, Siemens Israel Ltd. becomes a legal subject of the State of Israel, paying local taxes and subject to local labor and procurement laws, including the Mandatory Industrial Cooperation regulations that drive settlement sourcing.10
3.1.2 Siemens Energy Ltd.
Following the global corporate spin-off in 2020, Siemens Energy was established as a separate legal entity in Israel.
●Address: 13 Amal Street, Rosh Haayin.9
●Relationship: While legally distinct, Siemens AG remains a major shareholder. In the Israeli market, the two entities share historical legacy and brand equity. Siemens Energy is the critical partner for the Israel Electric Corporation (IEC), managing gas turbines and grid infrastructure.11
3.1.3 Siemens Healthineers
Siemens Healthineers operates as a dedicated vertical for medical technology.
●Corporate Motion: Despite plans for deconsolidation at the global level, in Israel, Siemens Healthineers functions as a dominant infrastructure provider for hospitals and HMOs. It engages in long-term “technology partnerships” 24 which embed the company into the healthcare system for decades.
3.2 Strategic FDI vs. Sustained Trade
The “Investment Flows” requirement necessitates distinguishing between buying goods (Trade) and building infrastructure (FDI). The audit confirms High Strategic FDI.
| Entity / Asset
|
Type
|
Location
|
Significance
|
| Mentor Graphics (Siemens EDA)
|
R&D Center
|
Herzliya
|
Acquisition of a major semiconductor design firm. Extracts IP for global use.7
|
| Siemens Industry Software
|
R&D Center
|
Airport City
|
Development of Tecnomatix manufacturing software.7
|
| Siemens Dynamo
|
Innovation Hub
|
Tel Aviv
|
Commercialization vehicle for early-stage Israeli startups (Industry 4.0).6
|
| Ashkelon Train Depot
|
Physical Infrastructure
|
Ashkelon
|
Construction and operation of a maintenance facility for Israel Railways.3
|
Assessment: The Target does not merely sell to Israel; it is organically integrated into the Israeli economy through fixed assets and intellectual property extraction. This “Strategic FDI” creates a reciprocal dependency that is far more difficult to sever than simple trade relationships.
.4. The Aggregator Nexus: Settlement Laundering and Industrial Sourcing
This section addresses the requirement to identify “Settlement Laundering.” In the absence of agricultural produce, the audit identified the industrial equivalent: the laundering of settlement-produced manufacturing components into the supply chain of a global infrastructure project.
4.1 The Reciprocal Procurement Mechanism
Israeli law (The Law for the Encouragement of Industrial Research and Development) mandates that foreign companies winning government tenders valued above $5 million must invest roughly 20% of the contract value back into the Israeli economy. This is known as “Industrial Cooperation” or “Reciprocal Procurement”.1
●The Trap: This legal framework effectively forces multinational corporations to integrate Israeli suppliers into their value chain.
●The Nexus: The Israeli government does not distinguish between suppliers within the Green Line and those in illegal settlements.
4.2 The Extal Case Study
In fulfilling its reciprocal procurement obligations for the Israel Railways Desiro HC contract (detailed in Section 5), the Target entered into a supplier relationship with Extal Ltd..2
●Supplier Identification: Extal Ltd. (Aluminum extrusion).
●Geographic Verification: Extal’s primary manufacturing facility is located in the Mishor Adumim Industrial Zone.1
○Context: Mishor Adumim is the industrial park of the Ma’ale Adumim settlement, located deep within the occupied West Bank. It is built on expropriated land and is integral to the economic viability of the settlement bloc.
●Transaction Value: The Target purchased aluminum parts worth approximately NIS millions / $4 million.1
●Material Support: Beyond simple purchase orders, the contract included “technological enhancements” for the Extal factory.1 This means the Target actively invested in upgrading the production capabilities of a factory located on occupied land.
●Laundering Mechanism: By accepting Extal as a valid partner for its offset obligations, the Target and the Israeli Ministry of Economy effectively “laundered” the settlement origin of the goods. The aluminum profiles, produced in the West Bank, were integrated into the Desiro HC trains and labeled as “Israeli content” to satisfy the tender requirements.
.5. The Mobility Vector: Infrastructure of Occupation
The “Investment Flows” and “Strategic FDI” requirements are most visibly manifested in the transportation sector. The Target plays an indispensable role in the modernization of Israel’s railway network, a project with profound geopolitical implications for the occupation.
5.1 The Desiro HC Project
In 2018, Siemens Mobility signed a landmark contract with Israel Railways (ISR) valued at approximately €900 million ($1 billion).13
●Asset: Delivery of 60 Desiro HC (High Capacity) double-decker electric trainsets.
●Configuration: The fleet includes 330 cars (expanded to 834 cars in subsequent options) in 4-car and 6-car configurations.1
●Technical Specifications:
○Speed: Maximum speed of 160 km/h.
○Capacity: 655 seats per 6-car unit.3
●Maintenance: The contract includes a 15-year full-service maintenance agreement, binding the Target to the project until at least 2033.13
5.2 The A1 High-Speed Line (“King David Line”)
The Desiro HC trains were procured specifically to operate on the newly electrified A1 High-Speed Line connecting Tel Aviv and Jerusalem.3
●Geographic Route: The A1 line deviates from the internationally recognized Green Line (1949 Armistice Line). It crosses into the occupied West Bank in two strategic locations:
1.Latrun Salient: The tracks traverse the Latrun area, a no-man’s-land occupied by Israel in 1967.
2.Mevasseret Zion / Beit Surik: The line tunnels through land belonging to Palestinian villages in the West Bank to shorten the route to Jerusalem.1
●Complicity Indicator: The construction and operation of this line have been condemned by civil society organizations as a violation of international law, which prohibits an occupying power from building permanent infrastructure on occupied territory for its own exclusive use. By supplying the rolling stock, the Target provides the essential hardware that makes this infrastructure functional. The trains facilitate the rapid movement of Israeli citizens and settlers between the coast and Jerusalem, normalizing the annexation of the land the tracks occupy.
5.3 The Ashkelon Depot: Fixed Infrastructure
As part of the maintenance agreement, the Target constructed a dedicated maintenance workshop in Ashkelon.3
●Facility Details: A 9,000 square meter facility equipped with specialized tracks, lifting systems, and digital diagnostic centers.10
●Strategic FDI: This represents a “High Proximity” investment. The Target is not just shipping trains; it is operating a facility on the ground, employing local staff, and managing the day-to-day logistics of the national railway carrier.
.6. The Energy Vector: Strategic Depth and Grid Integration
The audit examined the Target’s role in the energy sector, distinguishing between “Sustained Trade” (selling turbines) and “Strategic FDI” (building the grid).
6.1 Israel Electric Corporation (IEC) Partnership
The Target is a primary technology supplier for Israel’s transition from coal to natural gas, a strategic priority for energy independence.
●Gas Turbines: The Target has supplied SGT-800 industrial gas turbines for major power plants, including Alon Tavor and Ramat Gabriel.14
●Eshkol Power Plant: Recent reports indicate the Target serves as the turbine provider for the Eshkol power station project (NIS 3.8 billion), working in consortium with other international entities.15
●Settlement Power: The electricity generated by these turbines feeds into a unified national grid. There is no separation between the grid serving Tel Aviv and the grid serving settlements in the West Bank. Therefore, the Target’s technology indiscriminately powers the settlement enterprise.
6.2 The Great Sea Interconnector (EuroAsia)
The Target has been selected as the preferred contractor for the construction of the converter stations for the Great Sea Interconnector (formerly EuroAsia Interconnector).16
●Project Scope: A subsea High-Voltage Direct Current (HVDC) cable connecting the power grids of Israel, Cyprus, and Greece.
●Target’s Role: Construction of VSC (Voltage Source Converter) stations with a capacity of 1,000 MW (Stage 1).16
●Geopolitical Implication: This project ends Israel’s status as an “energy island.” It provides “Strategic Depth” by allowing Israel to export electricity (generated from offshore gas) and import power during emergencies.
●Occupation Nexus: Civil society reports highlight that the electricity imported via this interconnector will serve the entire area under Israeli control, including illegal settlements. This effectively integrates the settlement grid into the European energy network, violating the EU’s own “differentiation” policy.1
6.3 Solar Energy: Arava Power
The Target’s venture arm, Siemens Project Ventures (SPV), invested $15 million in Arava Power Company, acquiring a 40% stake.17
●Significance: While Arava Power operates primarily in the Negev (within the Green Line), the investment demonstrates the Target’s strategy of embedding itself in the ownership structure of critical national infrastructure, rather than merely acting as a vendor.
.7. The Surveillance and Carceral Vector: The Orad Group
This section addresses the requirement to map “related systems of apartheid, surveillance, or militarisation.” The audit focuses on the Target’s downstream supply chain via its Israeli distributor, Orad Group.
7.1 Israel Prison Service (IPS) Contracts
Forensic review of public tenders and corporate reports confirms a sustained contractual relationship between Orad Group and the IPS involving the Target’s technology.
●The Distributor: Orad Group serves as a certified integrator and maintenance provider for Siemens systems.4
●The Technology: Siemens fire detection and extinguishing systems and perimeter security systems.
●The Contracts:
○2004: Provision of a Siemens perimeter security system to Gilboa Prison.1 Gilboa is a high-security facility designated for Palestinian political prisoners (“security prisoners”).
○2018-2020: Sole supplier contract for maintenance of Siemens fire detection systems across IPS units.4
○2021-2023: Renewal of the sole supplier maintenance contract for Siemens fire alarm systems.4
●Operational Necessity: In a carceral environment, fire detection and perimeter security are mission-critical systems. They are essential for preventing escapes and maintaining control over the inmate population.
●Complicity: By allowing its technology to be installed and maintained in facilities that detain Palestinians under military law—often without trial (administrative detention)—the Target’s equipment becomes integral to the apparatus of incarceration.
7.2 Traffic Control and Apartheid Roads (Legacy Data)
Until its divestment in 2021/2022, the Target’s Intelligent Traffic Systems (ITS) division was active in the West Bank.
●Evidence: The Target’s traffic control systems were documented on Road 5 and Road 443.5
●Context: Road 443 is a major artery in the West Bank that has been subject to strict segregation regimes, restricting Palestinian access while serving as a primary commuter route for settlers.
●Divestment: The ITS division was sold to Atlantia and rebranded as Yunex Traffic.18
●Legacy Footprint: While the Target no longer owns the division, the infrastructure it installed remains in place. The divestment mitigates future complicity but does not erase the historical role in establishing the segregated road network.
.8. The Defense Vector: Dual-Use Technology and Conflict Sourcing
The “Seasonality Analysis” was adapted to check for “Conflict Sourcing”—contracts active during periods of war.
8.1 Ministry of Defense (IMOD) Software Licensing
The Target’s Digital Industries division supplies Product Lifecycle Management (PLM) software to the Israeli defense sector.
●Products: Teamcenter, Solid Edge, FLOEFD.1
●Function: Teamcenter is the industry standard for managing the engineering lifecycle of complex systems. In a military context, it is used for the design, simulation, and manufacturing management of weapons systems, armored vehicles, and aerospace platforms.
●The Client: The Israeli Ministry of Defense (IMOD) and major defense contractors (e.g., Elbit Systems, Israel Aerospace Industries, Rafael).1
●Conflict Seasonality Findings:
○Timeline: The audit identified contracts for license renewals and “modifications/enhancements” totaling at least $1 million between November 2023 and June 2024.1
○Context: This period coincides with the active military campaign in Gaza following the events of October 7, 2023.
○Implication: The renewal of these licenses during active hostilities indicates that the Target continued to support the engineering backbone of the Israeli military-industrial base without interruption, despite credible reports of high civilian casualties and potential war crimes. This suggests a lack of heightened Human Rights Due Diligence (HRDD) during conflict periods.
.9. The Water Vector: Desalination and Resource Control
Water is a strategic resource in the context of the occupation. Israel’s control over the Mountain Aquifer in the West Bank creates a disparity in water access between settlers and Palestinians.
9.1 Mekorot and Sorek Desalination
The Target maintains a strategic partnership with Mekorot, Israel’s national water company.19
●Sorek Desalination Plant: The Target supplied vertical frame motors (2,600 kW) for the pumps at the Sorek facility, one of the world’s largest desalination plants.21
●Systemic Role: Desalination allows Israel to maintain water abundance for its citizens and settlers while maintaining strict quotas on Palestinian extraction from natural aquifers. The Target’s technology enables the efficiency of this dual system.
●Mekorot’s Operations: Mekorot executes water policy in the West Bank, where it has been documented reducing supply to Palestinian towns during summer months while maintaining supply to settlements. The Target’s partnership with Mekorot directly supports the operational capacity of this agency.
.10. Financial Footprint: Shareholders and Reciprocal Capital
10.1 Shareholder Analysis
The financial relationship is circular. The Target profits from Israeli contracts (funded by Israeli taxpayers), and Israeli financial institutions profit from the Target’s global performance.
●Global Shareholders: Major institutional investors include BlackRock (6.5%), The Vanguard Group (3.2%), and the Qatar Investment Authority (3%).5
●Israeli Exposure: Israeli insurance giants such as Migdal Insurance and Harel Insurance are significant institutional investors.22 By holding stock in the Target, these Israeli funds effectively capitalize on the Target’s success in securing Israeli government contracts, creating a closed-loop financial ecosystem that insulates the economy.
10.2 Investment Flows: The Extraction Model
The Target’s involvement in the Israeli tech sector goes beyond sales; it involves the extraction of innovation.
●Siemens Dynamo: An open innovation program in Tel Aviv that scouts for Industry 4.0 startups.6
●Next47: The Target’s global venture firm, which invests in disruptive technology.23
●Strategic R&D: The acquisition of Mentor Graphics (now Siemens EDA) creates a dependency where the Target’s global semiconductor capability relies on Israeli talent and IP.7 This validates the Israeli tech sector—often closely linked to military intelligence units like Unit 8200—as a critical node in the global supply chain.
.11. Summary of Evidence for Ranking
The following data points are provided to facilitate the ranking of Siemens AG based on the provided scale of Economic Complicity. The audit specifically highlights areas of High Proximity and Direct Material Support.
11.1 Aggregator Nexus & Settlement Laundering
●Evidence: Procurement of aluminum profiles from Extal Ltd. (Mishor Adumim Settlement).
●Mechanism: Reciprocal Procurement (Industrial Cooperation) obligation.
●Value: ~$4 Million contract.
●Status: Confirmed “Settlement Laundering” of industrial components.
11.2 Infrastructure Support (Mobility & Energy)
●Evidence: Supply of 60+ Desiro HC trains for the A1 High-Speed Line (crosses Green Line).
●Evidence: Construction of Great Sea Interconnector converter stations (integrates settlement grid with EU).
●Evidence: Supply of SGT-800 turbines for national power plants.
●Status: Confirmed provision of essential infrastructure for the occupation.
11.3 Security & Military Support
●Evidence: Maintenance of fire/security systems in Gilboa Prison (via Orad Group).
●Evidence: Sale of Teamcenter/Solid Edge software to IMOD during active conflict (2023-2024).
●Status: Confirmed material support to the apparatus of incarceration and warfare.
11.4 Corporate Presence
●Evidence: Wholly-owned subsidiaries (Siemens Israel Ltd, Siemens Industry Software).
●Evidence: Physical assets (Ashkelon Depot).
●Status: High Proximity (Importer of Record).
End of Forensic Report
Works cited
