As Siemens Gamesa struggles with a lack of wind turbine orders and prepares to temporarily shut down plants in Hutchinson, Kansas and in Iowa, the company faces a total purchase by Siemens Energy.
It was May 21 when Siemens Energy launched a $4.28 billion effort for minority holdings in Siemens Gamesa reported Reuters.
Shareholder pressure has grown on Siemens to take total control of Siemens Gamesa. It already has a 67% stake in the company after a spin-off from the former parent Siemens SIEGn.DE.
Siemens believes that by assuming total control of Siemens Gamesa, it could save 300 million euros over the next three years, largely by better supply chain management, joint research and development and combined administration.
The total takeover could be closed in the second half of this year.
Siemens has offices in Oklahoma City and Bartlesville and is active throughout the state because of the large wind industry in Oklahoma.
Layoffs at the Siemens Gamesa wind-energy plants in Hutchinson, Kansas and Fort Madison, Iowa will begin in June and continue into July. At least 171 workers at the Iowa plant will be let go in June as the plant is closed. Another 92 workers at the plant in Hutchinson will lose their jobs in July.
The company has stated it remains a possibility that the plants could reopen with an improvement in market conditions. Wind turbine blades are manufactured at the Iowa plant while nacelles that house the turbine’s generating parts are made at the Kansas operation.