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Siemens Energy (OTCPK:SMEGF) (OTCPK:SIEGY) is considering shutting down Siemens Gamesa factories and sales offices as part of a review aimed at reducing losses at the wind turbine business, Reuters reported Monday.
The reported measures, which likely would cause additional layoffs, would be aimed at providing long-term relief for Siemens Gamesa by outsourcing production of some key components such as turbine blades in order to raise margins.
Details of the division's restructuring could be unveiled in November, when Siemens Energy (OTCPK:SMEGF) (OTCPK:SIEGY) is scheduled to release annual results and hold a capital markets day, according to the report.
Siemens Energy (OTCPK:SMEGF) (OTCPK:SIEGY) so far has booked €2.2B (~$2.3B) in charges related to the problems, which include wrinkles in rotor blades and faulty gears in newer onshore wind turbines.
Separately, Saudi Aramco said it is collaborating with Siemens Energy (OTCPK:SMEGF) (OTCPK:SIEGY) to develop a direct air capture pilot project in the Saudi city of Dhahran with the capacity to remove 12 tons/year of CO2 from the atmosphere.