Siemens Gamesa has reached a deal to sell its power electronics sector to ABB.
This sector, which is a part of Gamesa Electrical, is tasked with the design and production of converters, inverters, and control cabinets customized for the wind, solar, and energy storage industries.
The turbine division of Gamesa Electrical is not included in the deal and will remain managed by Siemens Gamesa.
The involved parties have chosen to keep the transaction amount undisclosed. The deal includes the transfer of around 400 personnel, two production plants situated in Spain, as well as additional resources in the United States, China, India, and Australia.
As part of this arrangement, both companies have entered into a long-term collaboration agreement, wherein ABB will provide power electronics for Siemens Gamesa’s turbines, applicable to both onshore and offshore uses.
This arrangement allows Siemens Gamesa to further its strategy of honing in on its core operations while partnering with a leading global technology company in the field. The deal is expected to foster growth within the Gamesa Electrical power electronics division, thereby improving the future outlook of its manufacturing sites and workforce.
“Our main goal for Siemens Gamesa is to achieve financial sustainability, which requires a dedicated focus on our core business operations,” expresses Vinod Philip of Siemens Energy. “The decision to manufacture in-house or outsource is a continual factor for us, and in this context, Gamesa Electrical is likely to thrive under ABB’s management.”
The finalization of this transaction is anticipated in the second half of 2025, subject to necessary regulatory approvals from appropriate authorities.
