The wind sector will soon be left with four OEMs outside China – only two of them strong players – predicted the CEO of Siemens Gamesa.
Markus Tacke said external pressures and fierce competition had put the industry in a period of “rapid consolidation that will leave only the most robust and innovative companies left”.
Tacke told reporters following the company’s latest annual results: “If I look at the six main global players, two are either in insolvency already like Senvion … or very close to it, given the specifics of Indian insolvency law. You know the situation about Suzlon,” said the Siemens Gamesa CEO, referring to the indebted Indian OEM that is currently under major pressure to restructure its finances.
Excluding Chinese OEMs, Tacke said: “We see four players going forward. Two of them are struggling and two are on the strong side. Siemens Gamesa is clearly one of the two on the strong side, delivering our margin and guidance for fiscal 19 and with a clear profitability outlook for the years to come.”
The Siemens Gamesa chief did not name the other three, but Vestas is likely to be the other “strong” player. GE Renewable Energy and Nordex Group are the other two OEMs active globally in wind power.
Tacke was speaking after Siemens Gamesa unveiled record commercial activity for its 2019 financial year and increased profits, but warned ongoing “headwinds” such as pricing pressure and regulatory uncertainty would persist, with 2020 set to be a “transitional year”.
Shares in Siemens Gamesa – which also announced plans for 600 more job cuts – were trading almost 10% lower in Madrid after it guided for potentially lower profit margins in the current financial year