Siemens Power and Gas Division plans to close a gas turbines parts service center in Houston by 2020, leaving 200 workers unemployed, according to an announcement this week. The closing has been a “difficult” decision, according to a spokeswoman. The company stated the closing is a result of weakened global demand for its gas turbines.
In its statement to the Texas Workforce Commission, Siemens also described overcapacity in its own organization.
Weaker global demand for gas-power installation has also hit rivals General Electric and Mitsubishi Hitachi Power Systems. In September, Siemens announced it would reduce its Power and Gas and Process Industries divisions in Germany by 2,900 jobs, with a savings target of about $590 million.
Siemens develops and manufactures heavy-duty, industrial and aeroderivative gas turbines, up to 567 MW.
In August, Siemens AG introduced a reorganization program, Vision 2020, which will consolidate five operating units into three, and to decentralize the organization, making the existing operating units more flexible for their respective customers and adaptable to new industrial market opportunities.