Siemens Energy is embarking on a determined path to address quality issues plaguing its onshore wind division, with CEO Christian Bruch expressing confidence in resolving the challenges, albeit acknowledging that the process may extend over several years.
In written remarks published ahead of the group's annual general meeting (AGM), Bruch emphasized, “The losses we incurred in our wind business and the underlying problems are unacceptable. We will not tolerate them. We are resolutely tackling them and will ultimately solve them.”
The crux of the issue lies in quality concerns surrounding Siemens Energy's newer generations of onshore wind turbines, specifically the 4.X and 5.X platforms. Bruch acknowledged that rectifying these problems could span several years.
Siemens Energy's AGM, scheduled for Feb. 26, is expected to be contentious, with investors likely to criticize the group for a sharp decline in share prices following the turbine issues. These problems prompted Siemens Energy to seek billions of euros in state-backed guarantees.
Despite the challenges, Bruch indicated that extensive analysis by an expert task force over eight months had not identified any new causes of losses associated with the two turbine models. As a result, the 1.6 billion euro ($1.7 billion) provision earmarked to address these issues is deemed adequate.
“We will solve these wind-power problems. We will win back your trust, the trust of our owners,” Bruch affirmed, underscoring the company's commitment to rectifying the situation and regaining investor confidence.
Siemens Energy's resolve to confront and overcome the quality issues within its wind division reflects its dedication to delivering high-quality, reliable products to the market while assuring stakeholders of its long-term viability and commitment to excellence.
