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Clean energy is one of the money making sectors: Siemens
By siliconindia
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Monday, 10 January 2011, 20:47 IST
Bangalore: Siemens a global supplier in electronics and electrical engineering whose products are used in the energy and Healthcare sector is planning to expand its presence in the wind energy sector. The renewable energy division of Siemens shows that the company sees clean energy as one of the money making sectors and has recorded a sale of 977 million euros as of September 30th 2010. New orders rose 85 percent to 1.45 billion euros. The unit made 103 million euros for the quarter and 368 million euros for the fiscal year.
The wind energy division brought about 5 percent of the profit of the total yearly profit for Siemens.
Siemens is stepping up its investments in U.S. and Canada. The reason for expansion for Siemens is to aim a becoming one of the top three suppliers of wind power equipment in the world. Wind power equipment makers in U.S. have faced a few challenges with the government incentives and the plunge in the price of natural gas,which made wind energy less competitive.Also the financial crisis has made it difficult for the smaller operators to get loans for building wind parks.
Siemens has also planned to expand its wind parks in India and Russia. China, world's largest market for wind power is one of the most difficult markets to enter because of the strict government policies which only favour local companies.Siemens recently opened a factory in Shanghai.They chose this part because it is on the water and a good place from which to ship equipment for offshore wind parks.
Close competition lies between Siemens and companies like Sinovel, Goldwind and Dongfang as these companies offer lower prices, with financing and also force down prices for better profit margins.
