Report: Siemens ‘Committed’ To Gas Turbine Business

19 June 2018

Siemens is pushing back against reports that it is considering selling its gas turbine business.
Bloomberg News reported that Siemens sent a memo to employees refuting its story that Siemens is considering several strategic options, including a sale.
The memo from Lisa Davis, managing board member responsible for the power and gas division, included instructions on how to respond to questions about the business.
“There is no truth to the rumors. Siemens is committed to the power generation for the long term!”, the memo stated, according to Bloomberg News. “And of course this is also true for our large gas turbines.”
Siemens announced plans in November to cut 6900 jobs at the power and gas division and close some factories. The unit, which produces turbines in Berlin, Germany, Charlottesville, Virginia, USA and Finspong, Sweden, has seen a dramatic drop in orders as the global energy industry shifts away from large-scale power plants. Siemens is not alone in facing those challenges.
In December, GE Power announced that it plans to reduce its global headcount by approximately 12 000 positions, affecting both professional and production employees.
At that time, GE said the moves were driven by challenges in the power market worldwide. Traditional power markets including gas and coal had softened and volumes were down significantly in products and services driven by overcapacity, lower utilization, fewer outages, an increase in steam plant retirements and overall growth in renewables, the company said.
Earlier this month, GE announced plans to close its manufacturing facility in Salem, Virginia, USA.
About 250 workers would lose their jobs at the plant, which designs and produces control systems and integrated circuit boards for gas and steam generators, pitch systems for wind turbine blade controls, starters for gas turbines and down-tower assembly for wind power conversion systems. The letter of intent to close the plant noted “a significant decline in orders at this facility.”

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