Ingenious Solution Unveiled for Onshore Wind Turbine Issue by Siemens Gamesa

FRANKFURT, August 11 - A positive turn of events has unfolded at Siemens Energy (ENR1n.DE) as it successfully addressed quality concerns related to its onshore wind turbines currently available for sale, as stated by Jochen Eickholt, CEO of the wind division at Siemens Gamesa. Eickholt enthusiastically announced the group's advancement in its turnaround efforts.

Eickholt's remarks follow an announcement by Siemens Energy earlier this week regarding charges amounting to 2.2 billion euros ($2.4 billion) in connection with its wind division. While this has been a challenging development for the company, it's important to note that the situation has attracted attention from the prominent shareholder Siemens AG (SIEGn.DE).

Among the aforementioned charges, a significant portion, approximately 1.6 billion euros, has been allocated to address quality concerns related to rotor blades and gears of the 4.X and 5.X models of the onshore turbines. These turbines, around 2,900 in number, are already operational in various locations.

Eickholt expressed his sentiments in a LinkedIn post, stating, "While I am disheartened by the occurrence of these challenges, it's essential to highlight that the versions of our 4.X and 5.X onshore wind turbines, which are currently being offered to our valued customers, have undergone essential modifications." He further emphasized that the identified issues have been effectively resolved, focusing on rectifying the situation for the turbines that are already operational in the field.

Furthermore, Eickholt underscored that Siemens Gamesa has undertaken strategic measures to enhance profitability. These measures include price adjustments, reduced liabilities pertaining to damages, and a more discerning approach towards new projects.

Acknowledging the current circumstances as partially self-induced, Eickholt noted the broader market conditions, which have proven challenging for wind turbine manufacturers due to the prevailing inflationary trends.

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Source : Reuters (Reporting by Christoph Steitz)