Siemens to align renewables business into two divisions for Wind Power, and Solar & Hydro
August 12, 2011 By Alyssa Dalton
August 12, 2011 – Siemens is “gearing up for further growth in renewables” and realigning its renewables business into two independent units effective October 1, 2011, it said. The existing Renewable Energy Division shall be divided into two new divisions Wind Power and Solar & Hydro, where Dr. Felix Ferlemann, to date head of the Chassis Systems Division of Benteler Automotive, will to be appointed CEO of the Wind Power Division.
“We want to continue our success story in wind power business and establish the basis for further growth,” said Michael Suess, CEO of the Siemens Energy Sector.
Siemens also intends to bundle its solar and hydro power business activities in a new division Solar & Hydro.
“We’re separating solar and wind power because these two markets are at very different stages of development. In the new unit Solar & Hydro we’ll be moving forward with research and development in the field of solar power to further increase our competitiveness,” Suess explained. “In our established wind power business we’ll be forging ahead with industrialization and internationalization. Germany, the rest of Europe and the whole world need power storage systems for the integration of renewables. Our Solar & Hydro Division will therefore also be handling the strategic issue of power storage.”
The future CEO of this division has not yet been appointed.
“In the future, the industrialization of manufacturing and logistics with a view to reducing power generation costs through high-efficiency production will play a decisive role in wind power business. Particular importance will also be attached to regionalization in order to enhance customer intimacy,” rationalized the company. “Siemens will therefore in the future be conducting its wind energy business below division level from three regional business units located in the U.S., Asia and Europe.”
“With the new setup we want to ensure that we continue the success story with our wind power business in the future, too,” said Suess. “The starting position for that is good: We’ve got an order backlog of almost 11 billion euros, and we’re world market leader in offshore wind farms, the market sector posting the fastest growth. We also want to forge ahead with onshore wind turbines.”
To further reduce wind-based power generating costs the company has announced it will focus on new products and industrialized manufacturing and logistics, adding that an international manufacturing and marketing & sales network will play a key role in its strategy. Following the opening of two new factories in the U.S. and China in late 2010, the company is planning further production facilities in Canada, as well as the UK, India, Russia, and Brazil.
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