Siemens Sees Wind Turbine Pricing Pressure Continuing, CEO Says
“We continue to see capacity adjustments, overcapacity” and therefore continued pricing pressure in the renewables business, Loescher said today during a call with analysts.
Siemens, which today said profit from its renewable business declined 48 percent to 36 million euros ($44 million) in the third quarter, sees “no deterioration but also no reason to believe that we’re seeing a positive development” in that industry, Loescher said.
Western turbine makers including Siemens, General Electric Corp. and Denmark’s Vestas Wind Systems A/S (VWS) are suffering from increased competition from Asia. Siemens’ new renewable orders declined 68 percent to 525 million euros.
Vestas is cutting a 10th of its workers as its market share slips away to China’s Sinovel Wind Group Co. (601558) and Xinjiang Goldwind Science & Technology Co. (2208)