Siemens Energy, the firm with operations throughout Oklahoma including a Wind Service Distribution Center in Woodward is becoming a stand alone company as its parent is spinning off its energy business.
In making the announcement this week, Siemens AG said also that 55% of Siemens Energy will be spun off to Siemens’ shareholders.
The company said Siemens shareholders would automatically receive one share of Siemens Energy AG for every two shares they own of the parent, Siemens AG. The company on Tuesday said the new Siemens Energy will have about 91,000 workers, which includes the company’s global energy workforce as of the end of March.
The company in its news release said Siemens AG plans to further reduce its stake in the new business within 12 to 18 months of the effective date of the spinoff. The company, like others in the power generation business such as General Electric and ABB, has been restructuring its operations as the global energy landscape continues to evolve, with an increased emphasis on renewable power and a lessening of dependence on fossil fuels. ABB in late 2018 announced Hitachi would acquire more than 80% of the company’s Power Grids unit in an $11 billion deal.
Revenue targets for several energy companies, including Siemens, have taken a hit during the COVID-19 pandemic. Siemens Gamesa Renewable Energy (SGRE), the company’s wind turbine arm, on May 6 reported disruptions from the coronavirus had a “direct negative impact” of more than $60 million on the company’s fiscal second-quarter earnings.
Siemens AG also issued the invitation to an “Extraordinary Shareholders’ Meeting” on July 9. The company will seek approval of the spinoff at that meeting, with hopes of completing the planned spinoff by the end of September, with an initial listing of stock planned for September 28.
“Turning Siemens’ energy business into an independent company is a key milestone in the successful execution of our Vision 2020+ strategy program,” said Joe Kaeser, president and CEO of Siemens AG, in a statement Tuesday. “The considerable increase in the value of our healthcare business shows the huge potential we can tap by further sharpening the focus of our company. This applies to both, Siemens Energy and the ‘New Siemens AG,’ which is concentrating on our Industrial Businesses. We’ve now reached a major milestone in the overall realignment that is preparing the Siemens companies for the massive technological transformations that we are anticipating.”
The spinoff of the energy business will allow Siemens AG to concentrate on its digital products for industry, across its Digital Industries, Smart Infrastructure, and Siemens Mobility divisions. Siemens AG in March 2018 spun off its healthcare business, Siemens Healthineers, which has now operated as a separately managed company for more than two years.
Siemens Energy’s products will include the company’s combined cycle turbines, generators, transformers, and compressors. The new company also will have a 67% stake in SGRE, a global leader in wind turbine technology.
The company’s manufacturing plant in Hutchinson, Kansas will also be a part of the deal but reports indicate that the 300 workers there will not be part of the planned layoff of 10,400 workers by Siemens AG worldwide. The Hutchinson facility manufactures wind turbine nacelles.
It was in 2012 when Siemens Energy staged a grand opening of its 64,000-square-foot wind service distribution center in Woodward. The company said at the time that the center’s geographic location in the heart of the wind belt would allow for reduced delivery times and greater parts availability.
The center stores and distributes main components and spare parts including wind turbine blades, drive assemblies and generators as well as tooling operations.
Siemens also recently was part of helping Oklahoma Gas and Electric company achieve commercial operation of the gas-fired generating station, Mustang Energy Center in Oklahoma City. Siemens supplied seven industry-leading aeroderivative gas turbines and generators for the plant.
Source: POWER