Bloomberg reported that Siemens is exploring options for its struggling gas turbine business, and could look to form a joint venture with Japan’s Mitsubishi Heavy Industries (MHI). Manager Magazin on March 21 said Siemens “wants to accommodate the large turbine business of the Japanese Mitsubishi Group and in the future hold only a minority.”
Reuters, citing two sources, on Thursday reported that Siemens wants a plan in place by its capital markets day for investors on May 8. The sources reportedly told Reuters that talks between Siemens and MHI “had intensified recently,” although Siemens reportedly is looking at other options for the business, including keeping it.
Siemens Chief Executive Joe Kaeser would prefer to have only a minority stake in the venture.
“The situation on the global market for fossil power plant technology remains unchanged. Siemens began tackling these challenges back in early 2015,” a company spokesman said.
The business has suffered from a move away from large gas turbines toward renewable energy sources which has triggered a collapse in demand, while overcapacity in the industry has caused fierce price competition.