Siemens Energy CEO to solve quality issues at onshore wind division

MUNICH, Germany: In a written statement published ahead of the group’s annual general meeting (AGM), Christian Bruch, CEO of Siemens Energy, said the company is confident that it can solve quality issues at its onshore wind division, but that process could take several years.

"The losses we incurred in our wind business and the underlying problems are unacceptable. We will not tolerate them. We are resolutely tackling them and will ultimately solve them," Bruch said.

The problem is mainly due to quality issues with the group’s newer generations of onshore wind turbines, the 4.X and 5.X platforms, he added, stressing that fixing the issues will probably take several years.

During its AGM scheduled on February 26, investors are expected to criticize AGM Siemens Energy for a share price decline caused by the turbine issues, which forced the group to seek billions of euros in state-backed guarantees.

"After eight months of intense analysis by an expert task force, no new causes of losses had been identified with the two models, meaning a Euro1.6 billion (US$1.7 billion) provision set aside to cover the problems was still seen as sufficient," Bruch said.

"We will solve these wind-power problems. We will win back your trust, the trust of our owners," he added.