The Munich-based industrial group is rearranging itself: it is outsourcing its oil and gas business. It should be used by the autumn of next year to the stock market. Almost every fifth Siemens employee is affected by the decision.
New freedom at Siemens: In the future, the six new major divisions, which were reorganized in early April, will probably operate much more independently than the previous divisions. One day before Siemens CEO Joe Kaeser revealed details of his new strategy „Vision 2020+“ at the Capital Markets Day, the future plans for the ailing Gas & Power division were announced.
Siemens shareholders should get majority
Siemens wants to outsource the crisis-ridden power plant division and bring the entire energy industry business to the stock market by September 2020. The Munich-based technology group will then hold only a minority stake in the business, the majority of shares should be given away to its own shareholders. Siemens announced on Tuesday evening. The goal is to keep the blocking minority.
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The wind power subsidiary Siemens Gamesa, in which the Group currently holds 59 percent, is also to be brought into the new company. The newly formed Gas and Power division, which includes 80,000 of the 380,000 Siemens employees, comprises the activities in the oil sector and gas, conventional power generation, energy transmission and related service businesses. It comes to 30 billion euros in sales. Siemens used the same model a few years ago to separate it from its lighting technology subsidiary Osram.
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Biggest problem child of Siemens
As a result, Siemens is also parting with its biggest problem child: the power plant business. Especially in the case of large gas turbines, the market has broken in recent years. Siemens has launched an austerity program that includes capacity reduction and the removal of thousands of jobs.
CEO Joe Kaeser was convinced that the decision was positive for all sides. „Autonomy now gives us more freedom and flexibility,“ said Gas and Power CEO Lisa Davis on the future of the division.
Concentration on digital, medical and railway technology
An extraordinary general meeting is expected to decide on the spin-off and subsequent stock exchange listing in June 2020. Siemens wants to focus on its growth areas in the future. The core businesses will be the Digital Industries and Smart Infrastructure divisions in the future. Siemens intends to grow significantly in the markets of automation, industrial digitization and intelligent infrastructure and to further expand its position. They are flanked by the listed majority holding in Siemens Healthineers and by rail technology, which is also to be strengthened as a growth business.
