Siemens Gamesa to acquire certain European assets of Senvion Group

Spanish wind turbine manufacturer Siemens Gamesa Renewable Energy has signed a deal worth €200 million to acquire selected European assets of German wind turbine manufacturer Senvion Group.

The transaction includes assets mainly belonging to the European onshore service business of Senvion Group and all related assets and operations that offer full service, all the intellectual property, and also an onshore blade manufacturing plant in Vagos, Portugal.

The transaction is expected to consolidate Siemens Gamesa’s capacity and potential in important European markets in the service and onshore segments.

The acquisition of Senvion Group’s service fleet of 8.9GW will expand the fleet of Siemens Gamesa to around 69GW under maintenance.

Following the deal, the business mix and geographical exposure of the Spanish wind turbine manufacturer will get diversified with contracts which give long-term visibility and renewal rates that have been traditionally very high.

Siemens Gamesa to acquire certain European assets of Senvion Group. Photo courtesy of Siemens Gamesa Renewable Energy, S.A.

Yves Rannou – CEO of Senvion Group said: “We are pleased that we have been able to give our colleagues in a large part of the European Onshore Services business and in our blade production facility in Portugal positive news today, securing close to 60% of all jobs for now.

“Siemens Gamesa will be a safe new home for them. We are also confident that this is a good solution for our service customers.”

According to Siemens Gamesa, the Vagos blade manufacturing plant is one of the most competitive manufacturing facilities in Europe. The blade manufacturing facility in Portugal is expected to bolster the industrial value chain of the Spanish wind turbine manufacturer and decrease dependency on supplier sourcing from Asia, mitigating volatility under the uncertainties arising from present trade issues.

Furthermore, Siemens Gamesa said that the Vagos blade manufacturing plant is complementary to its own existing blade capacity and will help to support international sales with its best-in-class operational features.

The intellectual property of Senvion Group will help Siemens Gamesa to further improve its technology portfolio for its future development.

Markus Tacke – CEO of Siemens Gamesa said: “This transaction is an important step forward for Siemens Gamesa. Bringing Senvion´s service assets on board will help us to drive growth in a key market segment and add important capacity in Germany and other important European markets, while the blade factory helps us mitigate the risk in the difficult trade environment.

“We´re bringing good people and good business into the company and that´s a win for all parties.”

Around 2,000 Senvion employees will be joining Siemens Gamesa as part of the acquisition.

The Spanish wind turbine company is expected to close the deal in H1 2020, subject to getting the necessary regulatory approvals and meeting other closing conditions.