Siemens set to sell solar business
Firm says expectations of solar activities have not been met
Siemens is reportedly looking to sell its solar energy business and is already in talks with potential buyers, according to Reuters. The firm is planning to divest both its solar thermal and PV units, leaving the firm with wind and hydro power in its renewable energy portfolio.
“Due to the changed framework conditions, lower growth and strong price pressure in the solar markets, the company’s expectations for its solar energy activities have not been met,” the firm has said in a statement.
The under-performing solar businesses reported losses greater than revenues of US $391 million in 2011. Siemens is said to be looking to catch up with peer profits by reviewing struggling business units.
The continued economic conditions in Europe, together with the cutting of subsidies to the solar industry, have been suggested as key contributing factors to the falling profitability of solar.
Whilst solar may be dropped, the firm is pressing ahead with its wind business. Dietmar Siersdorfer, Siemens Middle East, Energy Sector CEO, told Utilities Middle East that the firm’s wind business was continuously introducing new technology – such as gearless generators – that greatly improve efficiency, and that wind power prospects were being followed up in Northern Egypt and elsewhere in the region.