Siemens Increases Its Windmill Push

By ALEXANDER BECKERSeptember 12, 2008

HUSUM, Germany -- Siemens AG plans to expand its international wind-power operations, including producing more wind-turbine parts in the U.S., as part of a move to increase its share of the market, a company official said.
The German industrial conglomerate plans to manufacture nacelles for wind turbines in the U.S., in addition to the rotor blades it already makes at a plant in Iowa, Andreas Nauen, chief executive of Siemens's wind-power unit, said in an interview. In a wind turbine, the nacelle houses the generating components.

Siemens is looking at three to five locations in the U.S. for a plant to manufacture nacelles for 2.3-megawatt turbines, Mr. Nauen said, speaking on the sidelines of a wind-energy industry fair here in Husum, Germany. Siemens currently manufactures the nacelles in Denmark, where its wind-power unit is based.
Mr. Nauen said the company, which already has a booming wind-power business, has set a target to lift its market share in the sector to at least 15% in 2011 from 8% to 9%.
The company's targeted increase of installed capacity to 4.5 gigawatts by 2011 is "on the right track," Mr. Nauen said. This year, Siemens expects installed capacity of 2 to 2.1 gigawatts. A gigawatt is equivalent to one billion watts, enough to power about 300,000 U.S. households.
The company plans to build a factory in China and also sees India as an expansion target, Mr. Nauen said. By boosting its manufacturing capacity, Siemens is getting in gear for the expected long-term growth of the world-wide wind-power market.
In the sector, Siemens competes with companies such as India's Suzlon Energy Ltd., Spain's Gamesa SA, Denmark's Vestas Wind Systems AS and the U.S.'s General Electric Co. This week, Siemens struck a deal with German utility E.On AG to build 500 wind turbines for projects in Europe and the U.S. The deal is valued at more than €1 billion ($1.4 billion), according to Siemens Energy's renewable-energy division chief executive, Rene Umlauft.
Write to Alexander Becker at alexander.becker@dowjones.com