The new Siemens Gamesa boss Jochen Eickholt wants to get the most pressing problems with its new wind turbine platform for use on land under control in the next few months. Ten to 15 loss-making projects with the onshore platform called 5.X are likely to burden Siemens Energy’s problem child until 2024, Eickholt admitted in an interview with the Archyde.com news agency. Eickholt wants to stabilize the 5.X project by the end of the year.
Siemens Gamesa is the world’s largest manufacturer of wind turbines on the high seas (offshore). The 5.X platform should also advance the Spanish company in the onshore business. Among other things, internal operational problems have led to losses and a series of profit warnings, which the German parent company also has Siemens Energy charged. This had sent the experienced reorganizer Eickholt as CEO to Spain and wants to take over Siemens Gamesa completely in order to be able to take better action there.
Despite the boom in renewable energies, many wind turbine manufacturers are currently struggling with immense pressure on margins. The causes go back to 2017. At that time, numerous countries had replaced the generous support system for such systems with auction procedures. The Corona crisis and the war in Ukraine added to this. New competitors, especially from China, have made life even more difficult for Siemens Gamesa in markets such as Brazil and India, said Eickholt.
The wind turbine manufacturers are also struggling with rapidly increasing costs for steel and logistics, which they have not been able to pass on to customers according to the contracts. Eickholt wants to change that – and sees initial success in trying to adjust prices: “It’s difficult, but we’re making progress, step by step.” Business in the past three months was “very solid”. “Not too good, but not too bad either.” (apa/red)