Siemens’ Mechanical Drives Unit to Become Standalone Company
A competitive market environment has led Siemens to a decision to set up its Mechanical Drives unit as a standalone company. The division comprises Flender and Winergy, which worked on the gearbox for Adwen’s AD 8-180 offshore wind turbine.
The new setup that will enable the business to operate more efficiently and flexibly in implementing its growth plans in the market which is currently characterized by weak growth, increasing competition from the Asian region and overcapacities, with correspondingly high price pressure, according to Siemens.
To achieve greater room to maneuver and intensify its business-specific orientation, the unit is to be managed in the future as a separate company under the Siemens umbrella.
Siemens said it also plans to invest in the spin-off’s locations worldwide and product portfolio in order to ensure its continued market and technology leadership.
“In the last two years, the business has considerably improved its competitiveness. We’ve focused MD on its core business and, among other things, created a separate sales organization that has considerably improved customer proximity,” said Jürgen Brandes, CEO of Siemens’ Process Industries and Drives Division. “Setting up a separate unit is the next step toward achieving long-term success.”
Mechanical Drives (MD), which belongs to Siemens’ Process Industries and Drives Division, currently has around 6,000 employees worldwide. The unit serves industries such as wind power, cement production, marine, conveyor and crane technology.