Finance: Two Geothermal Energy Turbine Manufacturers Could Form a Joint Venture

Siemens, Mitsubishi Discuss Merger of Turbine Units (Power Mag)

Ready to Spin, by Ross Peden. Poihipi Geothermal Power
Station, Taupo, New Zealand. GRC Photo Contest 2011.

A German business magazine reports that Siemens is exploring options for its struggling gas turbine business, and could look to form a joint venture with Japan’s Mitsubishi Heavy Industries (MHI). Manager Magazin on March 21 said Siemens “wants to accommodate the large turbine business of the Japanese Mitsubishi Group and in the future hold only a minority.”

Turbine manufacturers including Siemens, Mitsubishi, and General Electric (GE) all have struggled in recent years as growth in renewable energy generation takes market share from fossil fuel-powered generation. Overcapacity in the turbine industry has led to strong price competition.

GE was the top producer of gas turbines in 2018, with about 33% of global orders by capacity, according to Barclays Plc. Mitsubishi Hitachi Power Systems, a subsidiary of MHI, was next at 30%, with Siemens at 26%.

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