Siemens AG announced a plan to spin off its Siemens Gas and Power Division as an independent company, a venture it projects as a “major player” in the energy sector with business volume of €30 billion ($33.6 billion) and about 80,000 employees.
This new business would have its initial public offering in September 2020, according to the plan.
Last summer, Siemens introduced a reorganization program, Vision 2020, to 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.
Siemens Gas and Power manufactures industrial gas and steam turbines, a business sector that has been in decline over recent years, depressing the overall performance of the company.
In the spin-off, the parent company would include its oil-and-gas and conventional power generation sector product lines, power transmission and related services businesses, as well as its 59% stake in SGRE, a renewable energy business.
Siemens AG would retain a minority stake in the new Gas and Power business, but according to reports its own future strategy would emphasize its Digital Factory and Smart Infrastructure lines.