Siemens Gamesa sells business to ABB amid 'focus on core'

Siemens Gamesa has agreed to sell its power electronics operation to ABB, in a move the wind turbine OEM said will help it focus on its core business.

The business concerned, part of Gamesa Electric, designs and manufactures converters, inverters and control cabinets for the wind, solar and storage industries

The deal, for an undisclosed price includes two manufacturing plants located in Spain, as well as additional assets in the US, China, India and Australia.

As part of the transaction, both companies have entered a long-term collaboration agreement through which ABB will provide power electronics to Siemens Gamesa turbines, both onshore and offshore.

In a statement, Siemens Gamesa described the deal as consistent with its strategy of focusing on its core business, while partnering with a global technological leader in the sector.

Siemens Gamesa is currently completing a turnaround process after a grim 18 months sparked by quality issues in its latest platform of onshore wind turbines.

"Our primary goal for Siemens Gamesa is to achieve profitability, which requires a dedicated focus on our core business," commented Vinod Philip, executive vice president for wind power with parent company Siemens Energy.

"The make-or-buy decision is a constant consideration for us and in this case Gamesa Electric will be better positioned to thrive under ABB's umbrella.

"Nevertheless, through this cooperation agreement, we are securing essential capacities. I am pleased that we have found a solution for our nearly 400 employees, providing them with greater confidence and security for the future."

The deal did not include Gamesa Electric's generators business, which stays with Siemens Gamesa.

The transaction is expected to be closed in the second half of 2025, subject to regulatory approvals of the respective authorities.

In its own statement, ABB said the acquisition will "significantly expand ABB’s existing power conversion product and service offering to renewables OEMs and end users, with new portfolio and engineering assets that will support the profitable growth strategy of ABB’s Motion business area".

The electrical products for power conversion that come with the deal include doubly-fed induction generator (DFIG) wind converters, industrial battery energy storage system (BESS and utility-scale solar power inverters.

“This targeted acquisition is in line with our commitments to grow our portfolio for high power renewable applications and support productivity in a low-carbon world. It will expand our engineering depth for power conversion and grid connection, and will add significant opportunity to service a large installed base,” said Chris Poynter, head of ABB’s system drives division.

The acquisition is expected to increase ABB’s serviceable power conversion installed base with the addition of around 40GW, which the company said will leverage its access to new service, modernisation and repower opportunities.