Siemens Energy can 'fight way back' into key US onshore wind market: CEO Bruch

Christian Bruch also says no offshore turbine factory to be built in America until European plants are fully ramped up

Siemens Energy CEO Christian Bruch.
Siemens Energy CEO Christian Bruch.Photo: Siemens Energy

Siemens Gamesa plans to restart development of a 4MW wind turbine dedicated to the US market after problems with its 4.X and 5.X platforms have been fixed and the ramp-up of offshore wind factories has been completed, the CEO of parent company Siemens Energy said.

“We intend to go back into the market with a redesigned turbine together with customers,” Christian Bruch told journalists at an event last week in the Ruhr Area, where the company has a factory.

“Our priority is to [fix the] 4.X in Europe, then the 5.X in Europe and then we do the US.

“I would love to return as soon as possible with a new turbine. But in the end, I have to accept that certain things have a priority now and that other things will take time; I don't want to rush into things.”

Siemens Gamesa in May 2023 had launched its new turbine geared at the US market, the SG 4.4-164, which has a longer blade than the 4.X platform for Europe. But the OEM later last year paused the development to concentrate on the quality problems that surfaced at its 4.X and 5.X platforms.
The company traditionally had been only a minor player in its domestic German onshore wind market, but used to be among the top manufacturers in the key US market for turbines on land – a position Bruch is bullish regaining after the introduction of the new machine for the American market, which is currently dominated by its rivals GE Vernova and Vestas.

“It is absolutely possible to fight your way back into a market – also when it comes to onshore wind in the US,” the CEO said.

“But even if this will not come fast, we are confident that with the structure of the US market, there is an appetite to find other suppliers. This is also what my discussions with US customers tell me.”

The company will continue to invest in innovation, Bruch added, but said the pace of launching new turbine models needs to be slower in the industry, a position also taken by competitors such as Vestas.

“We need to stop this two-year rat race mechanism. We will invest in the next turbine generation, but launching it will take more time than people have experienced before.”

No US offshore factory for now

In regards to offshore wind, the Siemens Energy CEO said the wind turbine unit won’t build any new factory unless the existing ones are ramped up and running at full capacity.

“We already have two factories for onshore wind [in the US], and for offshore we are still in the process of ramping up the production and output in Europe. This is our priority right now.”

Siemens Gamesa in 2021 had said it plans to build a $200m offshore wind blade factory in the US state of Virginia to cater to a growing pipeline of preferred turbine orders in the US.

But the company in November last year scrapped those plans, telling Recharge that “development milestones to establish the facility could not be met” after several US projects were halted.

Trump effect?

Asked how a possible re-election of Donald Trump – who frequently has lashed out against wind power – as US president may affect Siemens Gamesa’s business, Bruch stressed that US energy infrastructure to a large extent is in private hands, and therefore may not be impacted by a possible government change.
We look into different scenarios of what we believe might happen in the different states, and I have a hard time seeing something changing to decisions we’ve made because of a change in government, which also for the most part is not our customer,” Bruch said

“The re-industrialisation of the US has started, and it is not going to be stopped.

“The US is and will continue to be an absolutely core market for us. That’s also why we're going to get back there in onshore wind, and at this point in time a governmental change would not lead me to a different decision-making.”

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Published 21 May 2024, 09:32Updated 21 May 2024, 11:48
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