Register to Subscribe



Home arrow News arrow Power and Energy arrow Siemens strengthens renewables business, further production planned in India
Siemens strengthens renewables business, further production planned in India Print E-mail
Written by Vijay   
Friday, 05 August 2011
Mumbai: Siemens wants to expand its market share in emerging countries with local value added and the development of wind turbines for China and India. Siemens is gearing up for further growth in renewables.

Following the opening of two new factories in the U.S. and China in late 2010, the company is planning further production facilities in Canada, the UK, India and Russia, and now also in Brazil.

Effective October 1, 2011, the company wants to realign its renewables business into two independent units. The existing Renewable Energy Division shall be divided into two new divisions Wind Power and Solar & Hydro.

For the third quarter ended June 30, 2011, Siemens Ltd. registered Sales of Rs 2779 crores, a growth of 24% over the comparable period last year. While new orders during the quarter rose by 8% to touch Rs 2282 crores, the order backlog grew by 10%to Rs 14964 crores. Profit after Tax (PAT) remained flat at Rs 155 crores, compared to the third quarter ended June 30, 2010.

The performance for the nine months ended June 30, 2011 has been impressive with Siemens Ltd. registering Sales of Rs. 8384 crores, a growth of 33% over the comparable period last year, while Profit after Tax grew by 16% to Rs. 667 crores. New orders during the nine months stood at Rs. 9615 crores.

All three Sectors recorded notable sales growth figures, with Industry growing by 8%, Energy by 49% and Healthcare by 41% as compared to the nine months last year.

Commenting on the third quarter results, Dr. Armin Bruck, Managing Director, Siemens Ltd.,said, “The Siemens Ltd. growth story continues in spite of challenges due to rising raw material costs. Our bottom-of-the-pyramid product strategy is on track, and we are constantly enhancing our environmental portfolio, local manufacturing footprint as well as talent management programs”.

Dr. Felix Ferlemann, to date head of the Chassis Systems Division of Benteler Automotive, is to be appointed CEO of the Wind Power Division. "We want to continue our success story in wind power business and establish the basis for further growth," said Michael Suess, CEO of the Siemens Energy Sector. Siemens also intends to bundle its solar and hydro power business activities in a new division Solar & Hydro. "We're separating solar and wind power because these two markets are at very different stages of development. In the new unit Solar & Hydro we'll be moving forward with research and development in the field of solar power to further increase our competitiveness. In our established wind power business we'll be forging ahead with industrialization and internationalization. Germany, the rest of Europe and the whole world need power storage systems for the integration of renewables. Our Solar & Hydro Division will therefore also be handling the strategic issue of power storage," Suess added. The future CEO of this division has not yet been appointed.

Since 2004, Siemens wind power business has posted rapid growth. The work force has in the meantime increased approximately ten times over from 800 to approximately 7700, and revenue has even risen by a factor of twelve to approximately EUR3.2 billion. In the future, the industrialization of manufacturing and logistics with a view to reducing power generation costs through high-efficiency production will play a decisive role in wind power business. Particular importance will also be attached to regionalization in order to enhance customer intimacy. Siemens will therefore in the future be conducting its wind energy business below division level from three regional business units located in the U.S., Asia and Europe.

"With the new setup we want to ensure that we continue the success story with our wind power business in the future, too," said Suess. "The starting position for that is good: We've got an order backlog of almost 11 billion euros, and we're world market leader in offshore wind farms, the market sector posting the fastest growth. We also want to forge ahead with onshore wind turbines." To further reduce wind-based power generating costs the company will focus on new products and industrialized manufacturing and logistics. For example, nacelles are now produced in a continuous flow manufacturing process, with the automation of rotor blade production to follow. Only recently Siemens installed the prototype of its new direct drive wind turbine rated at 6 megawatts and announced investments of 150 million euros in two new R&D locations in Denmark. In addition to innovation and industrialization, internationalization of the manufacturing and marketing & sales network will play a key role in Siemens strategy.

Siemens will bundle its activities in the fields of solar and hydro power in the Solar & Hydro Division. In this field Siemens acts as general contractor for large-area photovoltaic (PV) installations in the megawatt capacity range. Only recently, the company also acquired a minority stake in Semprius, a developer of high concentrating PV modules. In the field of solar thermal power the range of products offered extends from components such as solar receivers and solar fields to complete solar thermal power plants. In addition to business with small hydro power plants the new Division will also encompass the Siemens stakes in Voith Hydro (35 percent), one of the leading vendors in the hydro sector, and in Marine Current Turbines (approximately 10 percent), a pioneer in tidal current energy turbines. The new unit will also be a center of competence for the development of power storage technologies.

Wind turbines, solar power and components for hydro power plants are part of Siemens' Environmental Portfolio. In fiscal 2010, revenue from the Portfolio totaled about EUR28 billion, making Siemens the world's largest supplier of ecofriendly technologies. In the same period, our products and solutions enabled customers to reduce their carbon dioxide (CO2) emissions by 270 million tons, an amount equal to the total annual CO2 emissions of the megacities Hong Kong, London, New York, Tokyo, Delhi and Singapore.

The Siemens Energy Sector is the world's leading supplier of a complete spectrum of products, services and solutions for the generation, transmission and distribution of power and for the extraction, conversion and transport of oil and gas. In fiscal 2010 (ended September 30), the Energy Sector had revenues of approximately EUR25.5 billion and received new orders totaling more than EUR30.1 billion and posted a profit of more than EUR3.6 billion. On September 30, 2010, the Energy Sector had a work force of more than 88,000.

Last Updated ( Friday, 05 August 2011 )
 
Related news
More recent
Earlier on
< Prev   Next >

Sponsors

Mazak - The world's largest machine tool builder
JYOTI - India's most dynamic machine builder
TaeguTec - Cost effective tooling solutions
Advertisement

<< SHARE

Social

AD

Subscribe

Subscribe to MACHINIST by Email

Search

 
RSS 1.0
© 2017 MACHINIST
This site is best viewed with Firefox 2.0 or higher at a minimum screen resolution of 1024x768