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Siemens Cutting 1600 Jobs At Power & Gas Division In Germany

May 31, 2015

By Paul Homewood  

 

h/t Joe Public 

 

image

http://af.reuters.com/article/commoditiesNews/idAFL5N0YJ4P220150528?pageNumber=1&virtualBrandChannel=0

 

FRANKFURT May 28 (Reuters) – Industrial group Siemens has resigned itself to never selling another gas turbine in its home country following Germany’s switch to renewable energy, its chief executive said.

Joe Kaeser is cutting 1,600 jobs at Siemens’ power and gas division, which has been turned upside down by the fallout from Germany’s decision to accelerate its nuclear exit and promote renewable energy following Japan’s 2011 Fukushima disaster.

"The way in which Germany’s energy transition is being handled has made it impossible for us to ever sell our fossil fuel-related products and solutions in Germany," Kaeser said in an interview published in Siemens’ staff magazine on Thursday.

Profit at Siemens’ power and gas division tumbled by a third last quarter and its profit margin dropped to 12.9 percent from 20.3 percent a year earlier as its large gas turbines in particular were hit by overcapacities and huge price erosion.

The Siemens-built Irsching gas-fired power plant in Bavaria, one of Europe’s newest, is to be shut down next year. It is one of many German conventional power stations being pushed out of business by competition from renewable energy.

Kaeser said he was willing to forfeit profits in order to carry out the job cuts – many of which will fall in Germany – in a socially responsible manner. Siemens had an average of 343,000 employees in its last fiscal year to end-September, a third of them in Germany.

"Structural adjustments will be made at all the locations, and we are perfectly willing to sacrifice the few percentage points of our profit margins that we could have perhaps attained by following a different approach," he said.

Siemens is also hiring more than 1,000 employees outside of Germany in countries where demand is strong.

It said in a separate statement on Thursday it had agreed to supply its first two H-class large gas turbines, similar to the ones it built at Irsching, to Mexico.

 

So much for the Green Jobs Revolution!

7 Comments
  1. John permalink
    May 31, 2015 12:37 pm

    In politics, the law of unintended consequences strikes again

  2. May 31, 2015 1:29 pm

    I used to work for Siemens (here in South Africa) and whilst at it, I was also high up as a union representative…[I must have been the first ever white employee voted in by a largely coloured/ black majority, trying to get equality for employees and trying to get more foreign (read: German) investment.]
    When it was really relevant, in the time when Mandela came to power, which we all had wanted, and decided was good for us, Siemens decided to divert all its relevant investments to eastern Europe instead, leaving us completely stranded, myself and many others unemployed……
    When I tried to fight it, including trying to protect our own pension investments, I came to realize that the German government and Siemens management were in cahoots, trying to promote eastern Europe investments, [especially Ukraine]. They probably figured that they would get more Euro’s back that way…..I decided that you simply cannot fight these “Mafia” gangsters, at the top, whose only concern is money.
    Now I am laughing again, realizing that the Ukraine was perhaps not that good a choice…..

  3. May 31, 2015 1:51 pm

    (1.5-15 MW) Gas Turbine Factory is in Lincoln
    “Siemens Industrial Turbomachinery Ltd in Lincoln produces small industrial gas turbines for the worldwide gas and oil industry and employs over 1,500.”
    “the largest private employer in the city,”
    “with over 90% of its machines destined for export markets”
    – They also have : Gas Turbine Service Centre, Teal Park, Lincoln
    as reported in 2013 http://www.themanufacturer.com/articles/siemens-unveil-new-lincoln-gas-turbine-overhaul-facility/

  4. May 31, 2015 2:02 pm

    Meanwhile 35 miles north in Hull “Construction work ‘on schedule’ for Siemens” £310m offshore wind turbine factory in Alexandra Dock, (Hull Daily Mail-May 20, 2015)
    “Its facility will create 1,000 jobs when it is up and running.”

    – “All demolition work is now complete at the dock in east Hull, with many … Siemens will begin building a wind turbine blade factory on the site later this year”
    “The initial construction phase is being funded by landowner Associated British Ports (ABP), ahead of Siemens moving in as a tenant.”
    Read more: http://www.hulldailymail.co.uk/Construction-work-schedule-Siemens-Alexandra-Dock/story-26532977-detail/story.html#ixzz3bj0LcCty

    ..I always wonder if this place will ever go into production.

    – Down the road “OIL giant BP has pulled out of a pioneering green fuel plant on the banks of the Humber, selling its stake to another shareholder.
    The £350m Vivergo Fuels business at Saltend was launched in 2007 and produces a renewable petrol additive from wheat.
    It hit full capacity at the end of last year but has had a rocky ride due to fluctuating commodity prices.
    Now BP has sold its 47 per cent stake in the company to joint venture partner Associated British Foods (ABF), giving the latter overall control with 94 per cent of Vivergo shares.
    Read more: http://www.hulldailymail.co.uk/BP-pulls-Vivergo-Fuels-business-selling-stake-ABF/story-26457047-detail/story.html#ixzz3bj1Ot5P6

  5. realist10 permalink
    May 31, 2015 3:46 pm

    This is the horrific legacy the greens have inflicted on rural communities in Germany..
    They will not give up until this whole edifice- scam is consigned to the cess pit of shameful past dogma. Repeal the Climate change act stop the whole green carpet bagger scam!

    http://en.friends-against-wind.org/testimonies/die-riesenspargel-machen-uns-das-leben-zur-hoelle

    If you thought the proliferation of useless wind turbines was running out of control in the UK
    take a moment to view this video and be shocked…

    • RockySpears permalink
      June 1, 2015 7:56 am

      That is one of the saddest films I have ever seen.

      But it may be our future.

      We live in Interesting Times.

  6. June 1, 2015 3:37 am

    Someone close to the industry might know what the real story is. It could be gas turbine manufacturing is moving to the US and other countries.
    – See the 14th May Newsweek article Europe’s engineering giants are fighting for survival. It claims there are only 2 Gas Turbine manufactures in Europe Siemens and Alstom in France, but Alstom is being taken over by GE (resulting in GE controlling 62% of the market share)

    “According to the IEA, new investments of around $1 trillion will go into building natural gas–fired power plants over the next two decades.”

    – It’s ironic that the world’s largest manufacturer of medium size GAS turbines (upto 22 Megawatts) is called Solar Turbines. (The company has had the name Solar since 1929)

    – April 17th NEW GAS POWER plant was opened by SSE in Ireland at Wexford €330m 464MW (power 1/3 of homes in Ireland, 0.5m of 1.5m), Jobs :1,200 construction, 40 operating.
    It features a MITSUBISHI gas turbine
    Sorry RH No cooling towers for you to photoshop.

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