Siemens Energy Addresses Quality Issues in Onshore Wind Turbines

Siemens Energy’s wind division, Siemens Gamesa, has resolved quality problems with its onshore wind turbines currently being sold to customers, according to CEO Jochen Eickholt. This announcement follows the recent revelation of 2.2 billion euros in charges related to the wind division, which has caused concerns among major shareholder Siemens AG. The charges include 1.6 billion euros specifically allocated to addressing quality issues with rotor blades and gears in the company’s 4.X and 5.X onshore turbine models. These models have approximately 2,900 wind turbines in operation.

Eickholt emphasized that despite these setbacks, the modified variants of the 4.X and 5.X onshore wind turbines currently being sold have already addressed the identified problems. The focus now is on rectifying the issues in the turbines already deployed in the field. In an effort to improve profitability, Siemens Gamesa has raised prices, reduced damage liabilities, and become more selective in pursuing new projects.

Eickholt acknowledged that the company’s current situation is the result of its own actions, but also pointed out that wind turbine manufacturers have been facing challenging market conditions. Many companies in the industry have been grappling with losses due to rising inflation. Siemens Energy continues to work towards its turnaround strategy with a focus on resolving the quality issues and optimizing its operations.

Daniel Hall