Siemens Energy sells most of its Industrial Division

Siemens Energy announced on Tuesday that it plans to sell the majority of its division that supplies industrial customers. The move is intended to focus the power equipment supplier's attention more on the growing utility sector.

Siemens Energy's Transformation of Industry business unit (ToI), which makes steam turbines, electrolysers, and other products, accounted for EUR5.7 billion ($6.7billion) or 15% of group sales in the last year, with an 11% profit margin.

Siemens Energy stated that the future set-up was designed to provide ToI with "greater entrepreneurial flexibility" and more options for growth, including bringing in outside investors or a possible capital markets transaction.

The group stated that it would?deconsolidate' the business, while maintaining a significant minority stake.

The announcement confirms 'company efforts to simplify their set-up. This is primarily aimed at customers who require components to produce electricity. These include gas turbines, wind turbines, and 'grid equipment.

Early August, sources said that the group's supervisory council would discuss plans this week.

(source: Reuters)