Siemens Energy Chief Deflects Calls for Wind Power Spin-Off, Urges Accelerated Gas Power Plant Development
Munich-based Siemens Energy’s CEO, Christian Bruch, has firmly rejected demands from shareholders advocating for a separation of the company’s struggling wind power division, Siemens Gamesa. In an interview with the Frankfurter Allgemeine Sonntagszeitung, Bruch argued that such a move would fail to resolve the underlying issues and emphasized the continuing strategic importance of wind energy.
While acknowledging that Siemens Energy is rigorously assessing the profitability of all its business units, Bruch underscored that Siemens Gamesa is currently “in the middle of a turnaround”. Stabilizing the business is now the company’s immediate priority, followed by a future evaluation of potential restructuring options.
The call for a spin-off originated from an activist investor in December, highlighting concerns about Siemens Gamesa’s persistent losses. Bruch countered this narrative by stating that the division has demonstrated “noticeable progress” and is targeting break-even profitability by 2026. This assertion will likely be scrutinized given the division’s history of significant financial shortfalls and ongoing investigations into accounting irregularities.
Beyond Siemens Gamesa’s predicament, Bruch delivered a pointed critique of the German government’s pace in implementing its plan to construct numerous new natural gas-fired power plants. He hailed the recent agreement with the European Commission as a positive initial step, but stressed that it lacks concrete impact. Bruch urged the government to expedite the process, emphasizing the critical need for timely tenders and capacity planning for power plant operators and Siemens Energy itself.
“Germany cannot afford to lose any more time” in building these gas power plants, Bruch stated, highlighting the global demand for Siemens Energy’s turbine technology and contrasting Germany’s sluggish progression with the swiftness of other nations. He directly challenged policymakers to deliver, asserting that Siemens Energy’s ability to contribute to Germany’s energy security is intrinsically linked to the government’s commitment to facilitating infrastructure projects.
The German Ministry for Economic Affairs confirmed on Thursday that a preliminary agreement has been reached with the EU Commission regarding the contentious power plant strategy, following years of delays. The initiative proposes a tender for twelve gigawatts of new, controllable power capacity, with natural gas power plants slated as a key component. However, critics remain skeptical, questioning whether the bureaucratic hurdles can be overcome quickly enough to secure Germany’s energy supply and maintain Siemens Energy’s competitive edge in the global market. The pressure now mounts on the German government to translate verbal commitments into tangible action.
