Siemens Gamesa, the wind division of Siemens Energy, has revealed plans to implement cost-saving measures of approximately 400 million euros ($436 million) by 2026. The company aims to streamline its organization and optimize overhead costs, according to presentation slides released ahead of its capital markets day.
To achieve its cost-cutting goals, Siemens Gamesa intends to adjust its onshore wind turbine capacity in alignment with a refined product and market roadmap. While specific details were not provided in the presentation, the company’s focus on simplifying operations reflects its commitment to addressing previous challenges.
The announcement follows Siemens Energy’s recent disclosure of a 4.6-billion-euro loss caused by issues within its wind division, Siemens Gamesa. Delays in reaching anticipated milestones and a combination of product quality concerns and ramp-up difficulties have postponed the division’s projected break-even point to 2026.
Siemens Gamesa further outlined its strategy to streamline the variety of turbine variants it offers, aiming to optimize efficiency and improve production processes. Additionally, the company intends to pause wind product initiatives in areas it considers “adjacent fields,” notably hydrogen development.
These cost-cutting measures and strategic adjustments demonstrate Siemens Gamesa’s determination to regain its competitive edge in the wind turbine market. By optimizing its operations and focusing on core strengths, the company aims to overcome previous challenges and enhance its position in the industry.
Frequently Asked Questions (FAQ):
1. How much does Siemens Gamesa plan to save through cost-cutting measures?
Siemens Gamesa aims to save approximately 400 million euros ($436 million) by 2026.
2. What is Siemens Gamesa’s strategy regarding its onshore wind turbine capacity?
The company plans to align its onshore wind turbine capacity with a refined product and market roadmap, though specific details have not been provided.
3. Why did Siemens Energy report a significant loss?
Siemens Energy reported a 4.6-billion-euro loss, predominantly attributed to challenges within its wind division, Siemens Gamesa, including issues related to product quality and ramp-up problems.
4. What is Siemens Gamesa’s approach to its turbine variants?
Siemens Gamesa aims to streamline the wide range of turbine variants it offers, seeking to optimize efficiency and improve production processes.
5. Which wind product initiatives will Siemens Gamesa pause?
Siemens Gamesa plans to halt wind product initiatives in “adjacent fields,” specifically highlighting developments related to hydrogen.