Defense behemoth The Boeing Company (BA) and Siemens Corporation, a U.S. subsidiary of Siemens AG (SI), said they have entered a strategic deal to jointly develop and sell "smart grid" technologies to the U.S. Department of Defense (DoD).
The alliance between the two companies aims at providing U.S. military installations with secure microgrid management solutions that lower operational costs and increase energy efficiency.
The alliance's microgrid management solution will be designed to implement economical energy-efficiency tools that allow for analysis, control and automation of energy processes; use smart energy controls to provide real-time data to manage energy use; and integrate renewable energy sources and storage.
According to the companies, this operation should make a difference in the way the DoD uses energy using Boeing's expertise with complex systems and technologies, along with Siemens' global energy management capabilities.
Boeing has been a major contributor to the Defense Department by developing secure and networked systems for the DoD. Brining this capability to the development of energy security and efficiency is vital for the military's future. Boeing pointed out that its Defense, Space & Security unit will work with Siemens under the deal.
On the other hand, Siemens is the only company worldwide that provides customers with energy-efficient technologies that enable 'smart' production, transmission and consumption.
We expect the teamwork of Boeing and Siemens' will help provide energy independence and critical infrastructure protection to ensure mission success for the U.S. military, at home and abroad.
Siemens Corporation is a global powerhouse in electronics and electrical engineering, operating in the industry, energy and health care sectors. For more than 160 years, Siemens has built a reputation for leading-edge innovation and the quality of its products, services and solutions.
Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world's largest and most versatile manufacturer of military aircraft.
Boeing currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. Considering the fundamentals, we are maintaining our Neutral recommendation on the stock.
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