Siemens Gamesa to acquire Senvion assets for €200 million

Senvion Siemens Gamesa

Siemens Gamesa Renewable Energy reached on Monday an agreement to acquire a selection of assets from German group Senvion for €200 million.

These assets represent a large part of Senvion’s onshore services business in Europe, including all the assets and operations necessary to offer a complete service for customers, its intellectual property, and its wind turbine blade factory in Vagos, Portugal.

During Monday’s session, Siemens Gamesa stocks grew by 1.99% to €12.33 per share. In the past month, the company’s shares had decreased by 2.15%.

Greater capacity and potential

These assets in Europe will reinforce Siemens Gamesa’s capacity and potential in the wind energy market, as the multinational informed in a statement.

The document indicates that the company will acquire the maintenance of a 8.9GW fleet, thus increasing its operation and maintenance portfolio to nearly 69 GW.

The incorporation of these assets strengthens the company’s geographical and business diversification through contracts that offer long-term visibility and historically very high renewal rates.

Reducing volatility due to commercial disputes

The onshore wind turbine blade factory in Vagos is one of the most competitive in Europe. This complex will reinforce Siemens Gamesa’s industrial value chain, it informed; with this, the company seeks to reduce its dependence on Asian suppliers and mitigate the exposition to the volatility over current trade disputes.

On the other hand, this facility complement’s its current capacity to meet the expected market demand. Moreover, it has a first-level supply chain and will help support international sales.

Senvion provides state-of-the-art technology

The intellectual property acquired from Senvion will enable Siemens Gamesa to further improve its technological offer for the future development of the company.

“This operation is an important step forward for Siemens Gamesa,” said Markus Tacke, CEO of the company.

“Incorporating Senvion’s service assets will boost our growth in a key segment and improve our capabilities in Germany and other major European markets, while the shovel factory will help us mitigate risks in a difficult business situation. We are incorporating good professionals and good business into the company and that is a victory for all parties,” he added.

The operation is subject to necessary regulatory approval. In this context, Siemens Gamesa expects to close the purchase in the first half of its 2020 fiscal year (October 2019 - March 2020). In view of this, the operation will have no impact on the 2019 financial results.

Partial staff incorporation

As part of this operation, nearly 2,000 Senvion employees are expected to join Siemens Gamesa.

“We are pleased that we have been able to give our colleagues in a large part of the European Onshore Services business and in our blade production facility in Portugal positive news today, securing close to 60% of all jobs for now,” Senvion chief executive Yves Rannou said.

On the other hand, Senvion informed the liquidation process began in order to guarantee socially acceptable solutions for the rest of the employees.

Talks with possible investors for the remaining assets, the German company stated.

For more information, check Energía16

See also: Siemens Gamesa joins the construction of a 250-MW wind farm in Egypt

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