Siemens Gamesa has mapped a three-year business plan to 2020 focused on €2bn in savings and “profitable growth”.
The turbine manufacturer said its L3AD2020 business plan would be based on three “pillars” including best-in-class levelised cost of energy, business agility and “digital intelligence”.
It will be “supported” by change management focused on “people and culture”, said Siemens Gamesa.
The company said it expects to outperform the wider wind market on sales and that savings would be pegged on “procurement, technology and industrial footprint enhancements”.
Savings will be made in the area of “product affordability” and operations. The merger of the previously separate manufacturers will also realise synergies of €400m – nearly double the June 2016 target of €230m – and be delivered one year earlier than previously identified.
The EBIT margin for 2020 will be between 8% and 10%, it said, on the back of “strict balance-sheet control”.
Included in the strategy, to be fully unveiled at today’s capital markets day in Madrid, is a streamlined product portfolio.
In onshore, this will include new turbines in the 4.2MW platform with rotors of 132, 145 and 155 metres. Also on the menu is 2MW-class hardware “custom-configured to address the needs of strategic markets such as the US and India”.
A total of 25 existing variants will be reduced to just nine across two modular product lines.
Offshore, the company target is to “maintain its leadership in Europe and establish itself as a benchmark player in new markets such as Taiwan and the US”.
The company expects to increase its service portfolio by 40% over the next three years to 80GW.
Siemens Gamesa forecasts the overall global wind market to grow by 5% onshore through 2020 and 13% offshore by 2025. It will continue to “explore businesses that complement its core wind business, such as solar power, hybrid technology and energy storage”.
Siemens Gamesa chief executive Markus Tacke said: “The measures rolled out in recent months, coupled with the strategic plan we are presenting today, set Siemens Gamesa on track for strong profitable growth that will enable us to create more value for our shareholders and customers, fully bearing out the merger rationale and positioning us as leaders in an increasingly competitive environment”.
Further details of the plan will be announced later today. Check renews.biz through the day for updates, reaction and analysis and for the full story read the next edition of subscriber-only newsletter reNEWS.
Image: Siemens Gamesa
Siemens Gamesa blazes 2020 trail
By EBS