A Siemens 2.37 megawatt (MW) wind turbine is on display at the Ocotillo Wind Energy Facility in California on May 29, 2020.
Guan Bing | Reuters
German renewable energy company Siemens Energy announced on Wednesday that the chief executive of its troubled wind turbine unit will be replaced in “comprehensive restructuring measures”.
The company said in a statement that Jochen Eickholt of Siemens Gamesa informed the board of directors that by mutual consent he would resign as CEO on July 31 and be replaced by Vinod Philip.
“In a very difficult situation for Siemens Gamesa, Jochen laid the core foundations for a much-needed restructuring and new beginning within Siemens Energy. It is fair to say that the reasons for the quality problems did not belong to his tenure as CEO.
Gamesa has initiated comprehensive restructuring measures and “long-term strategic development steps” to improve operating margins, the company said.
Siemens Energy will encounter difficulties in 2023. this financial year. The wind turbine sector launched an investigation into quality issues.
In June, during a particularly volatile period for the stock price, Siemens Energy withdrew its profit forecast and warned that Gamesa’s costly failure could last for years.
The wind power industry has expanded rapidly over the past two decades, lowering the cost of competing with and sometimes undercutting fossil fuels, while increasing efficiency through larger turbines and reducing reliance on state subsidies. But last year’s problems have investors worried that Gamesa’s problems could be symptomatic of broader problems in the industry.
Meanwhile, on Wednesday, Siemens Energy reported last-quarter net profit of 108 million euros ($116 million) and raised its outlook for “stronger growth and positive cash development.”
—CNBC’s Elliott contributed to this article.
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