Banking on the Biden boom: Siemens Energy pins hopes on U.S.

[April 09, 2021]  By Christoph Steitz and Tom Käckenhoff

FRANKFURT (Reuters) - German engineering group Siemens Energy wants its slice of the $2.3 trillion U.S. President Joe Biden plans to spend on infrastructure, including power grids and renewables, as the company targets higher sales in its biggest market.

A trader walks next to Siemens Energy AG logos during Siemens Energy's initial public offering (IPO) at the Frankfurt Stock Exchange in Frankfurt, Germany, September 28, 2020. REUTERS/Ralph Orlowski/File Photo

"We see great opportunities for wind energy, onshore but above all in the area of offshore," Tim Oliver Holt, who is in charge of Siemens Energy's U.S. business, told Reuters, also pointing to transmission systems as a growth market.

Siemens Energy, spun off from Siemens AG last year, makes about $7 billion in revenues in the United States, or about a fifth of its total, by selling gas and wind turbines, transmission systems as well as servicing power plants.

To better capture growth in the world's top economy, Siemens Energy is considering whether to set up local production for offshore wind turbines on the U.S. East Coast, an area central to a plan announced last week to deploy 30 gigawatts by 2030.

Siemens Energy owns 67% in Siemens Gamesa, the world's largest maker of offshore wind turbines, which so far only caters for onshore clients in the United States via two production sites.

($1 = 0.8413 euros)

(Reporting by Christoph Steitz and Tom Kaeckenhoff, editing by Kirsti Knolle)

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