Bell tolls for small wind OEMs in ‘Darwinian’ market: Siemens exec
The wind market is going through a phase of cut-throat “Darwinian” competition, Siemens board member Michael Sen said when asked about the drivers behind the company’s merger with Spain’s Gamesa in turbine manufacturing.
“You’re either in or you are out. Only the big and strong [OEMs] will survive,” Sen told the Süddeutsche Zeitung newspaper in an interview. “The smaller ones will drop out of the market.”
Competition in the turbine market will get even fiercer from large Chinese rivals, Sen cautioned.
“So far, they are targeting their own market, but we can wait for them to come to us and really strike. We have seen that in telecommunications, we will experience it in trains, and also in other sectors.”
Sen is the Siemens board member responsible for wind turbine OEM Siemens Gamesa, of which the German conglomerate owns 59%. He is tipped as a possible successor to Siemens chief executive Joe Kaeser once his contract ends in 2021.
Siemens Gamesa’s financial results have improved recently as costs for restructuring and integration with Gamesa fade. Other Western wind OEMs – in particular the smaller ones such as Senvion and Nordex – are still facing losses amid sharp reductions in turbine prices and a simultaneous shrinking of key onshore wind markets such as Germany.