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Siemens Energy to shut sites after spin-off

Aug 31, 2020
Companies
Posted by Patrick Haddad

A person close to the company has claimed that Siemens Energy will close some of its sites after the spin-off is complete next month.

The report by Reuters quotes an unnamed source close to the company, saying “production sites will be shut down,”, adding that “there are no location guarantees,”.

Siemens Energy currently has around 75 factories globally that employ more than 50 staff each.

With 91,000 employees currently and annual sales of $34 billion, Siemens Energy is aiming to thrive on the global shift towards renewable energy, while also arguing that fossil-fuel based technology will still be needed for decades.

It will not adopt the so-called Radolfzell II agreement struck between German unions and its parent, which requires union consent in the event of site closures and forced layoffs, the person said.

A Siemens Energy spokesman said the group would start talks with labour representatives to explore what a common approach could look like, without elaborating.

“Learning of possible reductions from press reports four weeks prior to the start is absolutely unacceptable,” said Juergen Kerner, chief treasurer of the IG Metall union and member of Siemens’ supervisory board.

“At Siemens these things are usually handled better in the spirit of sound compromise.”

Siemens AG is spinning off 55% of the energy unit, which makes gas turbines, transmission systems and owns a 67% stake in wind turbine maker Siemens Gamesa. It will retain a direct stake of 35.1%, with the Siemens Pension-Trust owning the rest.

Siemens has said it wants to significantly reduce its holding within 12-18 months of the listing, slated for Sept. 28. Chief Executive Joe Kaeser, who will become Siemens Energy’s chairman, has said Siemens aims to keep a 25% stake.

Source: Reuters

Photo (for illustrative purposes): The Wings, Siemens HQ, Munich / Martin Falbisoner / Wikimedia / CC BY-SA 4.0

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