(Boursier.com) — Siemens Energy still intends to put its subsidiary Siemens Gamesa back on track. During an investor day, the German company indicated that it wanted to reduce the costs of its division dedicated to wind energy by around 400 million euros by 2026. The objective is to “simplify the organization and to optimize overhead costs” while the capacity of Siemens Gamesa’s onshore wind turbines will be adjusted according to a refined product and market roadmap, the German group said without providing further details.
Siemens Gamesa will also reduce the number of turbine variants it sells and suspend any wind product initiatives in what the company considers “adjacent areas”, particularly hydrogen. “The turnaround of Siemens Gamesa remains our top priority and we now have a defined path and action plan to break even in the wind business in FY 2026 and return to profitability subsequently,” said Christian Bruch, Chairman of the Board of Management of Siemens Energy.?
Siemens Energy last week revealed a 4.6 billion euro loss linked to Siemens Gamesa, as a combination of product quality issues and ramp-up pushed back reaching the expected break-even point until 2026 . In a precarious situation, the German giant obtained a rescue plan of 15 billion euros from the government via loan guarantees.
Despite wind power’s central role in the energy transition, wind turbine manufacturers are struggling to survive after soaring raw material costs and borrowing costs made projects unprofitable and led to writedowns of several billion.