Miniatures of windmill and electric pole are seen in front of Siemens Gamesa logo in this illustration taken January 17, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
FRANKFURT, Aug 11 (Reuters) – Siemens Energy (ENR1n.DE) has fixed quality issues at onshore wind turbines it is currently selling to customers, the CEO of the group’s wind division Siemens Gamesa said on Friday, adding the group had made progress with its turnaround.
The comments by Jochen Eickholt come after Siemens Energy this week unveiled 2.2 billion euros ($2.4 billion) in charges related to its wind division, a major setback for the group that has drawn the ire of top shareholder Siemens AG (SIEGn.DE).
Of those charges, 1.6 billion euros are earmarked for quality issues around rotor blades and gears for its latest onshore turbine models, the 4.X and 5.X, of which roughly 2,900 are in the field.
“Although I am very disappointed that we are experiencing these issues, it’s worth mentioning that the variants of the 4.X and 5.X onshore wind turbines that we are currently selling to our customers have already been modified,” Eickholt said in a LinkedIn Post.
“In other words, the identified problems have been addressed and it is now a matter of rectifying them in the respective wind turbines that are already in the field.”
Eickholt pointed out that Siemens Gamesa had raised prices, reduced damage liabilities and become more selective over new projects to raise profitability.
While conceding the group’s “current situation is self-inflicted”, he said market conditions were unfavourable for wind turbine makers, many of which have been struggling with losses in the wake of rising inflation.
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Reporting by Christoph Steitz Editing by Friederike Heine and Mark Potter
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