Siemens Wind Power Is Now No 5 Turbine Maker: CEO
Date: 09-Feb-10
Country: DENMARK
Author: Karin Jensen
BALLERUP, Denmark - German industrial conglomerate Siemens moved up a notch among wind turbine manufacturers in 2009 to become number five in the world, the chief executive of its wind power arm said on Monday.
Siemens, which says it is No. 1 in the market for offshore wind turbines, aims to be among the top-3 wind turbine suppliers overall by 2012, and Siemens Wind Power's Andreas Nauen said in an interview that the target remains valid.
"I'm very confident that we overtook Suzlon (in 2009)," Nauen said.
In 2008, Denmark's Vestas was the world's leading wind turbine producer followed closely by U.S. General Electric, Spain's Gamesa, and Germany's Enercon. Indian manufacturer Suzlon was number five and Siemens number six.
The rankings are based on overall megawatt capacity installed.
More efficient production and fewer components in new turbines are key to reaching the goal of being in the top three, Nauen said. It is also vital to have production in the three main markets: Europe, the United States and Asia.
"We need factories on all three continents because otherwise transportation and other competitive disadvantages will kill us," Nauen said.
After years of expanding in Europe, the focus is now on the United States, where Siemens Wind Power is currently ramping up production through large investments, he said.
Next in line is Asia. A new headquarter has been established in Singapore and at the end of this year, a new Chinese blade factory will be up and running, Nauen said.
"The next step will be a decision on what to do in India," he said.
2010 OFF TO A GOOD START
Siemens Wind Power has had a good start to the financial year 2009-2010 with a number of large contracts, Nauen said.
The wind turbine industry as a whole also looks to be improving with signs that the financing of new projects is getting easier after a difficult period, Nauen said.
"It's clearly not where it was before, but financing is now possible again," he said.
Siemens itself provides financing to wind turbine customers through its Siemens Financial Services unit, which Nauen said had been an advantage in times when financial markets were reluctant to stump up funds for large new projects.
Nauen estimated that around a quarter of the group's new orders are financed through Siemens Financial Services.
"Financing is a contributor and it helps on certain projects, but it's not that we only get orders because of the financing," he said, adding that technology and reputation were also key competitive factors.
