Siemens Gamesa ‘to raise wind turbine prices 3-5%’

Siemens Gamesa plans to end onshore wind turbine sales in China and increase turbine prices elsewhere, according to media reports.

CEO Andreas Nauen told German magazine WirtschaftsWoche it was giving up local direct business in China “because it is no longer of interest to us”.

However, the manufacturer will continue to produce wind turbines in China, but only for export to other markets, including Japan.

It will also continue to sell blades for offshore wind turbines to Chinese client Shanghai Electric. The Chinese company sells Siemens Gamesa offshore wind turbines through a licensing agreement.

Nauen also told WirtschaftsWoche the manufacturer was reviewing its operations in Russia due to project risk. He explained: “Building a wind farm on land is only possible for a few frost-free weeks a year.”

A Siemens Gamesa spokesperson confirmed Nauen’s words to the German business title, but was unable to elaborate on the reasons behind the decision.

Price pressure

Meanwhile, Siemens Gamesa also plans to raise turbine prices by 3-5% in response to rising raw material prices, Nauen told WirtschaftsWoche.

The manufacturer had reported challenges with commodity prices in its third quarter financial results as it made a heavy loss. In a conference call, Nauen had told reporters that the company would be passing on the cost increase to customers.

Meanwhile, analysts Wood Mackenzie have warned that increases in raw material prices, logistics costs and other challenges related to the coronavirus pandemic could push up turbine prices by as much as 10% in the next 12-18 months.