Siemens Pulls Out of Solar

Siemens is to modify its business strategy and organizational setup with respect to renewable energy. The company plans to divest its solar business activities and is currently holding talks with potential buyers on this subject.

Siemens intends to focus its renewable energy activitieson wind and hydro power. As part of this reorganization, the Energy Sector will be slimmeddown and the Solar & Hydro Division will be discontinued. Strengthening the company’sfocus on core activities is one of the five main points of the new company program 2014,the broad outline of which was recently announced to the public.

Due to the changed framework conditions, lower growth and strong price pressure in the solarmarkets, the company’s expectations for its solar energy activities have not been met. “The globalmarket for concentrated solar power has shrunk from four GW to slightly more than oneGW today. In this environment, specialized companies will be able to maximize their strengths,” said Michael Süß, member of the Managing Board of Siemens AG and CEO of theEnergy Sector.

Siemens also intends to part with the photovoltaic activities of the Solar & HydroDivision. Siemens is holding talks with interested parties on selling these activities. Siemens will continue to offer suitable products for solar thermal and photovoltaic power plants, such as steamturbines, generators, grid technology and control systems, which are produced outside of the Solar& Hydro Division.

Siemens will continue to operate the two Business Units Solar Thermal Energy and Photovoltaicuntil the sale. Thus, existing contractual obligations will currently not be affected. In the company’sfinancial statements, the two Business Units will be presented separately from the Energy Sector,as Discontinued Operations. The remaining business activities of the Solar & Hydro Division (hydropower and solutions for energy storage devices) will remain within the Energy Sector.

Thecompany’s hydroelectric activities include the joint venture Voith Hydro for conventional hydroplants and the business of tidal turbines, which was fully acquired in the spring of 2012. Theimportance of renewable energies in the global power mix will continue to grow and hydro powerand wind energy will remain the major renewable contributors for Siemens.