Siemens Energy has said it is targeting €400mn of cost cuts at its struggling wind turbine business after huge losses forced it to take a €15bn government-backed bailout last week.
“We are making sure we are streamlining wherever possible,” said chief executive Christian Bruch at an investor day in Hamburg, promising that the German company — a market leader in green energy with annual revenues of more than €31bn — would break even next year.
The group would look into outsourcing production for important components of its turbines, narrowing its international focus and revising unfavourable contract terms with customers, it said, as it embarks on a radical shake-up of the business aimed at restoring investor sentiment and protecting its fragile balance sheet.