Siemens Gamesa reveals strategy to revive wind power business

By Editor


Siemens Energy has revealed its strategy to revive Siemens Gamesa, the wind power business, to add more customers and profit.

Siemens Energy said Siemens Gamesa CEO Jochen Eickholt will step down from his position on July 31, 2024.

Vinod Philip (50) will be the new CEO of Siemens Gamesa from August 1, 2024. Siemens Energy will add wind power division into the Group’s management structure.

Vinod Philip is currently the Head of Global Functions (including IT, Purchasing, Innovation, Logistics, Project Management).

Siemens Energy CEO Christian Bruch said Siemens Gamesa has initiated restructuring measures and steps for long-term strategic development with the aim of achieving a double-digit operating margin. The aim of the measures is to achieve break-even by 2026 and then returning to profitable growth. The company will remain active in both the onshore and offshore business.

Siemens Gamesa has reported revenue of €2,314 million (down 4.6 percent) during January-March 2024. Revenue declined moderately as lower revenue in the onshore and service businesses more than offset growth in the offshore area

Siemens Gamesa has revealed that its orders fell to €881 million from €3,643 million. Onshore orders continued to be impacted by a temporary interruption of sales activities for the 4.X and 5.X turbines. In addition, the offshore and service businesses did not receive any large orders comparable to the same quarter of the prior year which included a €1.7 billion order in the UK. Book-to-bill ratio came in at 0.38. The order backlog decreased to €39 billion.

Siemens Gamesa expects revenue growth of 10% to 12% (previously 0 percent to positive 4 percent) and a negative Profit before special items of around €2 billion.


Siemens Energy CEO Christian Bruch said the onshore business will focus primarily on markets that offer a stable regulatory framework and in which Siemens Gamesa can optimally and profitably meet the needs of its customers with its product ranges. Specifically, these are the European domestic market and the USA. Other local markets are only served in new business if this makes economic sense in the respective case.

The production capacities in the onshore area will be adapted to this orientation. The most important task in the offshore area is the ramp-up of capacities, which is currently running as planned at the sites in Cuxhaven (Germany), Aalborg (Denmark) and Le Havre (France).

The global service business remains an important pillar. In order to further expand the strong presence in the service of onshore turbines, the responsibilities for the new turbine and service business will be combined in future. This holistic approach has also been successfully implemented in other business areas at Siemens Energy in recent years. A new organizational model will also reduce hierarchical levels and regulate responsibilities more clearly. These measures were also successfully implemented in the other Siemens Energy businesses in 2022.

The organizational realignment will also result in job adjustments. The exact impact of the job cuts, especially on individual countries and locations, cannot yet be quantified. Jochen Eickholt and Vinod Philip will finalize the individual measures in the coming weeks and discuss and negotiate with the respective employee representatives over the next few months.

Siemens Energy

Siemens Energy’s revenue grew by 3.7 percent to €8.3 billion with substantial and significant growth at Grid Technologies and Transformation of Industry, respectively.

Siemens Energy raised its outlook for fiscal year 2024. Siemens Energy expects revenue growth between 10 percent and 12 percent (previously between 3 percent and 7 percent) and a Profit margin before special items between negative 1 percent and positive 1 percent (previously between negative 2 percent and positive 1 percent).

Baburajan Kizhakedath

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