Two majors joining forces

It requires something when a merger results in a company like Siemens Gamesa Renewable Energy, and there is still a lot of hurdles ahead. But expectations run high – for the Danish market, too

 

In 2017 two of the world’s major producers of wind turbines merged. A merger naturally influencing the market and not least the two concerns involved now striving towards the same goal. The process of joining forces in still going on, and CEO Andreas Nauen from Siemens Gamesa Renewable Energy is looking forward to continuing the task at a global scale, but still, the Danish market will be in focus as historically seen it is important to the company.

  

2017 has been a year with radical changes. Where have you focused?

Last year we had many exciting challenges – both within our own company and in the global world energy industry.

Naturally, our main concern has been succeeding in the merger of Siemens Wind Power and Gamesa thereby creating Siemens Gamesa Renewable Energy. It is a merger of two already very large companies, and together we have a set-up active in 6 continents. Actually, it is the largest merger of companies in the history of the wind power industry. Obviously, it is a large, exciting, and complicated task.

I think we have come along quite well. Looking at our business section we see, that for the first half of 2017 we received orders for 3.9 GW corresponding to a market share of 19.%. Such a share is only exceeded by Vestas worldwide, and to us it is definitely an acceptable result, achieved in the middle of our merging process, that is. Here I would like to give credit to the enormous and untiring effort shown by my colleagues resulting in such a fine result. That is extremely well done.

A market share of 68% makes us a clear market leader, and that is a position we intend to work hard to maintain and develop.

In 2017 we did go through some reductions of our staff, in Denmark, too, and it is always sad to have to say goodbye to good colleagues. You never get used to that, but unfortunately it was necessary. The only modifying aspect was that activities in Danish industry have been picking up since then, so in general our competent personnel have quickly found new jobs elsewhere. And one should remember that even after the reductions we have some 6,000 employees working here in Denmark, and our Danish factories play a decisive part in our global set-up. We are most pleased with our activities here in Denmark.

Which changes have you felt in the Danish market?

You have to remember that our Danish market is of historic significance to us. Here a good part of our development took place, and here we made many of our early experiments with wind turbines. Every day we still go on developing the turbines of the future in our Danish research units. It was in Denmark, too, we established the first offshore wind farm in the world. Here some of our most important factories are situated, and here many thousands of our employees have their home.

Denmark already is strongly covered by wind energy, and we have impressive ambitions for wind energy in the future. To us what really has mattered is that we have been awarded the two major contracts for the future – Danish Kriegers Flak of 605 MW and Vesterhav North and South offering a combined 350 MW. That means a lot to us, as now we in the future, too, can play a major role in the country to which we are so strongly attached.

We advocate that wind power is still given strong priority in future energy agreements coming up this spring. It is important to Danish wind turbine industry to have a strong home market in which to work. We still would like to have Denmark as our showroom for global customers, and to be able to say:” This is a way to run a society built on sustainable, renewable energy resources!”

Which are your main challenges in the future?

Seen from an overall perspective the challenge is quite simple – and the same as it has been for many years: We shall contribute to lower the cost of wind energy. Industry has succeeded in reducing the costs of wind energy by 10% per decade, and we shall go on that way. Today onshore wind energy is the cheapest and most efficient way of producing electricity. This is a decisive symbolic crossroad, and on behalf of the wind power industry I am proud that we have come that far. Now we shall go on industrializing our activities and make them more efficient.

In our own business we shall continue the integration of our two companies in order to achieve the best result from both. Our target is that 90% of the integration between the two companies shall be completed within three years after our merger. So in front of us we see a task to be continued throughout 2018 and demanding almost all our focus. But we take a positive view as we feel that till now the results have fulfilled our expectations.

What is your target for 2018
– specifically for the Danish market?

Our target is to go on integrating our two companies. That means – among other things – that we are to streamline our two types of wind turbines. Our ambition for is that in 2020 we shall have only one model for offshore as well as onshore. They will, naturally, have two different platforms, but here we shall use the best know-how from our existing turbines and combine them. We are convinced that this will provide us with the best and most efficient wind turbines available at the best price in the market. That is one of our main targets for the coming years.

In this context we shall improve our wind turbines with respect to the energy output generated. Here our ambition is to increase the output by 20% in the years to come to the benefit to our customers and make our business case even more attractive.

Our wind turbine business, Adwen, from former Gamesa is being prepared, too, for integration into our other wind turbine activities.

Finally, we shall extend our service activities to comprising turbines not produced by us. It is my impression that we have the best service organization in the market, so we have an attractive service to develope further and to offer to a wider range of customers.      ¡

 

We still would like to have Denmark as our showroom for global customers, and to be able to say:” This is a way to run a society built on sustainable,
renewable energy resources!”

 

  

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