Siemens nonetheless hasn’t commented on reviews it may very well be trying to promote its fuel turbine enterprise. But the managing board member liable for the corporate’s energy and fuel division reportedly issued a memo to employees within the wake of these reviews, saying Siemens stays dedicated to its long-time flagship product.
Bloomberg, which on June 13 first reported the corporate might shed its fuel generators, as we speak reported a memo was despatched by managing board member Lisa Davis, citing what it referred to as “an individual accustomed to the doc.” The Bloomberg report quoted the memo as saying “There is not any reality to the rumors” a couple of doable sale of the turbine unit. “Siemens is dedicated to the ability technology enterprise for the long run! And in fact that is additionally true for our massive fuel generators.”
Bloomberg mentioned the memo, which it claims to have seen, contained directions on how employees ought to reply to media inquiries about the way forward for Siemens’ turbine enterprise. The textual content quoted by Bloomberg was underneath a heading “Background steerage for journalists,” it mentioned.
“Overall, the market atmosphere for energy and fuel stays powerful,” the memo reportedly mentioned. “This requires [us] to remain targeted on lowering our capacities and price. We have a transparent path in place and are coping with the challenges in a forthright and pressing method.”
Bloomberg’s report earlier this week, whereas noting the potential for a sale, additionally mentioned Siemens might hold the unit and attempt to climate the present international slowdown in demand for fuel generators. The firm, together with long-time competitor General Electric, has fallen behind Mitsubishi Hitachi Power Systems in international orders for fuel generators.
Siemens has informed media retailers, together with POWER, that it doesn’t touch upon rumors, nor on its discussions with particular person clients. Siemens has not commented on the June 13 report of a doable sale.
Bloomberg as we speak reported that prime executives at Siemens mentioned Davis’ memo is her opinion, and never the pondering of senior administration, citing “an individual accustomed to the matter.” Bloomberg mentioned that would “replicate a cut up inside the German engineering agency’s prime brass over the [turbine] unit’s future.”
Heather Eason, CEO of South Carolina-based Select Power Systems and a former director of engineering at Siemens, informed POWER in an e-mail: “As gross sales proceed to fall and the [turbine] market shrinks every year, it’s higher to promote now. This will hopefully scale back the impression on staff and retain worth for shareholders.” Eason mentioned, “As a former worker of Siemens Energy Management division, I can let you know that Siemens cares about their staff and hated to chop jobs and shut some factories within the energy and fuel division.”
Siemens in November 2017 mentioned it could reduce 6,900 jobs, most of them within the energy and fuel division, in an effort to cut back prices. The firm has mentioned the ultimate variety of positions being eradicated remains to be being negotiated with its labor unions.
—Darrell Proctor is a POWER affiliate editor (@DarrellProctor1, @POWERmagazine).
The put up Memo: Siemens ‘Committed’ to Gas Turbines Unit appeared first on POWER Magazine.