Siemens Energy addresses quality issues in onshore wind turbines. CEO assures modifications in current models amid 2.2 billion euro charges.

Siemens Energy has responded to major quality issues concerning its onshore wind turbines, confirming that the current models being sold to consumers have been rectified. Jochen Eickholt, CEO of the group's wind arm Siemens Gamesa, provided these reassurances on Friday, signifying that the company is on the right track towards its recovery strategy.

The clarification follows a recent disclosure by Siemens Energy that detailed charges of 2.2 billion euros ($2.4 billion) linked to its wind segment. This substantial financial hit has intensified scrutiny from its primary shareholder, Siemens AG.

A closer look at these charges reveals that 1.6 billion euros have been set aside to address quality concerns primarily related to rotor blades and gears in the 4.X and 5.X onshore turbine models. 

According to Reuters, approximately 2,900 of these turbines are already operational in various locations.


Jochen Eickholt candidly communicated his thoughts on the situation via LinkedIn, stating, "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." He further emphasized that measures have been taken to correct the identified problems, particularly in turbines already deployed.

To fortify its market stance, Siemens Gamesa has taken proactive steps, including increasing product prices, trimming down damage liabilities, and adopting a discerning approach in selecting new projects, all aimed at boosting profitability.

Acknowledging the company's missteps, Eickholt admitted the "current situation is self-inflicted." Nonetheless, he underscored the broader industry challenges, highlighting the unfavorable market conditions impacting wind turbine manufacturers, many of whom are grappling with losses exacerbated by rising inflationary pressures.

Samira Matthews is a tech-savvy content editor with a passion for sustainability. She stays up-to-date with the latest technology trends, explores their applications, and shares her insights through writing and blogging. With a keen analytical mind and a commitment to eco-friendly practices, she advocates for sustainable living and communicates complex ideas effectively to inspire positive change.

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