Siemens Gamesa Renewable Energy (SGRE) has outlined its path to long-term sustainable profitable growth at its virtual Capital Markets Day.
SGRE said that a refreshed corporate strategy would unleash the full potential of the company by capturing growth opportunities in its profitable Offshore and Services businesses and driving a turnaround in Onshore.
The strategy prioritizes profitability over volume, cash generation, as well as efficiency and productivity in all operations.
“Public and government demand for clean energy solutions to climate crisis will drive continued investment in renewable electricity generation and we are well-positioned to deliver value to shareholders and society by playing a full role in that process,” said Andreas Nauen, CEO of Siemens Gamesa.
“It has been a tough period for the industry and the company, but I am confident we have all the right components in place. Our people, technology, scale and global footprint are strong foundations on which to build a long-term industry leader.”
While wind turbine manufacturers’ margins have been eroded by external factors à¢€” such as the introduction of auctions, global trade tensions, and the disruption caused by COVID-19 à¢€” the long-term outlook for wind power is very favourable.
Read more about the impact of COVID-19
According to the International Energy Agency (IEA), renewable energies will account for more than 50% of the global capacity mix in 2040 and wind is expected to attract the highest investments in that period, according to BNEF. Strong growth is expected in particular in the Offshore and Services markets over the next decade, while demand in Onshore will remain solid. Additionally, prospects are expected to be buoyed by the emergence of green hydrogen technologies in which SGRE expects wind to play a key role.
Said Nauen: “A new management team has been appointed to lead the turnaround. Additionally, through our new core shareholder, Siemens Energy, we will be part of an energy powerhouse, and we expect to be able to benefit from strong synergy potential.”
With the goal of achieving long-term success, the company presented the LEAP acceleration program it has launched, which is based on three pillars:
- Innovation: both in terms of product portfolio and business offering,
- Productivity: through cost optimization and strict cash management,
- Operational excellence: in project execution quality and in health and safety in our operations.
Digitalisation and sustainability are at the heart of the LEAP program, as enablers and differentiating factors.
Further detail about the transformation of Siemens Gamesa business units is available online.