Production of offshore wind turbine rotor blades to be constructed at the East coast of Great Britain
New logistics- and service centre in Green Port Hull
1,000 new jobs to be created
Siemens is investing more than EUR190 million (GBP160 million) in new offshore production facilities in Great Britain. Production of rotor blades for offshore wind turbines of the 6-megawatt class is planned, with a new logistics- and service centre slated for Hull. The British Prime Minister David Cameron and Michael Suess, member of the managing board of Siemens AG and CEO of the Energy Sector will reaffirm their common dedication to these projects this afternoon in Hull.
“Our decision to construct a production facility for offshore wind turbines in England is part of our global strategy: we invest in markets with reliable conditions that can ensure that factories can work to capacity. The British energy policy creates a favourable framework for the expansion of offshore wind energy. In particular, it recognizes the potential of offshore wind energy within the overall portfolio of energy production”, stated Michael Suess, member of the managing board of Siemens AG and CEO of the Energy Sector. The offshore wind market in Great Britain has high growth rates, with an even greater potential for the future. Wind power capacity has doubled here within two years, to roughly 10 gigawatts. By 2020, a capacity of 14 gigawatts is to be installed at sea alone to combine the country’s environmental objectives with secure power supply. Projects for just over 40 gigawatts are currently in the long-term planning. The British Prime Minister David Cameron declared: “Our constructive political environment enables us to provide new jobs for the wind power industry, together with a reliable and more sustainable energy mix.”
Siemens and its British partner Associated British Ports (ABP) will be investing a total of EUR371 million (GBP310 million) at the project sites. These investments will bolster the strong offshore market in Great Britain and will likewise stimulate the country’s job market: 1,000 will be created directly, with 550 of these in rotor blade production and 450 in Green Port Hull. Other jobs will follow in the construction industry and emerge indirectly in the supply industry.
Siemens is a leading supplier for wind turbines, grid connection and service for onshore and offshore sites in Great Britain. The company has installed more than 2,200 turbines onshore and offshore there in the world’s most significant wind power market with a total capacity of more than 5,000 megawatts. Hence, around half of the wind power capacity installed in Great Britain is equipped with cutting-edge technology from Siemens. Siemens has a workforce of around 14,000 in Great Britain, 1,500 of which are employed in the British wind power business.
Green Port Hull is scheduled to take up operations at the beginning of 2016, with commencement of rotor production scheduled for the summer of 2016. Full capacity of the factory is to be reached starting at mid-2017. These investments will support Great Britain in its endeavours to pursue its environmental objectives and to satisfy one fourth of its electricity needs from renewable energy sources by 2020.
Wind power and the associated service are part of the Siemens environmental portfolio. Around 43 percent of the company’s revenues are provided by green products and solutions, making Siemens the world’s largest supplier of ecofriendly technologies.
The Siemens Energy Sector is the world’s leading supplier of a broad spectrum of products, services and solutions for power generation in thermal power plants and using renewables, power transmission in grids and for the extraction, processing and transport of oil and gas. In fiscal 2013 (ended September 30), the Energy Sector had revenues of EUR26.6 billion and received new orders totaling approximately EUR28.8 billion and posted a profit of approximately EUR2 billion. On September 30, 2013, the Energy Sector had a work force of approximately 83,500. Further information is available at: http://www.siemens.com/energy
NOTES AND FORWARD-LOOKING STATEMENTS
This document includes supplemental financial measures that are or may be non-GAAP financial measures. Orders and order backlog; adjusted or organic growth rates of revenue and orders; book-to-bill ratio; Total Sectors profit; return on equity (after tax), or ROE (after tax); return on capital employed (adjusted), or ROCE (adjusted); Free cash flow, or FCF; adjusted EBITDA; adjusted EBIT; adjusted EBITDA margins, earnings effects from purchase price allocation, or PPA effects; net debt and adjusted industrial net debt are or may be such non-GAAP financial measures. These supplemental financial measures should not be viewed in isolation or as alternatives to measures of Siemens’ net assets and financial positions or results of operations as presented in accordance with IFRS in its Consolidated Financial Statements. Other companies that report or describe similarly titled financial measures may calculate them differently. Definitions of these supplemental financial measures, a discussion of the most directly comparable IFRS financial measures, information regarding the usefulness of Siemens’ supplemental financial measures, the limitations associated with these measures and reconciliations to the most comparable IFRS financial measures are available on Siemens’ Investor Relations website at www.siemens.com/nonGAAP. For additional information, see supplemental financial measures and the related discussion in Siemens’ most recent annual report on Form 20-F, which can be found on our Investor Relations website or via the EDGAR system on the website of the United States Securities and Exchange Commission.
This document contains statements related to our future business and financial performance and future events or developments involving Siemens that may constitute forward-looking statements. These statements may be identified by words such as “expects,” “looks forward to,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will,” “project” or words of similar meaning. We may also make forward-looking statements in other reports, in presentations, in material delivered to shareholders and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements are based on the current expectations and certain assumptions of Siemens’ management, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond Siemens’ control, affect Siemens’ operations, performance, business strategy and results and could cause the actual results, performance or achievements of Siemens to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements or anticipated on the basis of historical trends. These factors include in particular, but are not limited to, the matters described in Item 3: Key information—Risk factors of our most recent annual report on Form 20-F filed with the SEC, in the chapter “Risks” of our most recent annual report prepared in accordance with the German Commercial Code, and in the chapter “Report on risks and opportunities” of our most recent interim report.
Further information about risks and uncertainties affecting Siemens is included throughout our most recent annual and interim reports, as well as our most recent earnings release, which are available on the Siemens website, www.siemens.com, and throughout our most recent annual report on Form 20-F and in our other filings with the SEC, which are available on the Siemens website, www.siemens.com, and on the SEC’s website, www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements of Siemens may vary materially from those described in the relevant forward-looking statement as being expected, anticipated, intended, planned, believed, sought, estimated or projected. Siemens neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.
Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
For more information on: Siemens