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Image Credit: Siemens Gamesa
Siemens Gamesa has announced an agreement to sell its power electronics business to ABB, marking a strategic step in the renewable energy sector. This division of Gamesa Electric specializes in designing and manufacturing converters, inverters, and control cabinets used across the wind, solar, and storage industries. Notably, Siemens Gamesa’s generator business will remain under its ownership.
The deal includes the transfer of approximately 400 employees, two manufacturing facilities in Spain, and additional assets located in the United States, China, India, and Australia. As part of the agreement, ABB will continue to supply power electronics for Siemens Gamesa’s onshore and offshore turbines, ensuring continuity and reinforcing the partnership.
The transaction is expected to be finalized in the second half of 2025, pending regulatory approvals. This timeline aligns with Siemens Gamesa’s broader strategy of streamlining its operations to focus on its core renewable energy business.
Siemens Gamesa emphasized that this move aims to bolster the growth of the Gamesa Electric power electronics division, securing a sustainable future for its employees and manufacturing facilities under ABB’s leadership. By partnering with a global technological leader, Siemens Gamesa seeks to reinforce its position in the renewable energy ecosystem while enabling ABB to expand its footprint in the power electronics market.
"Our primary goal for Siemens Gamesa is to achieve profitability, which requires a dedicated focus on our core business. The make-or-buy decision is a constant consideration for us and in this case Gamesa Electric will be better positioned to thrive under ABB's umbrella. Nevertheless, through this cooperation agreement, we are securing essential capacities. I am pleased that we have found a solution for our nearly 400 employees, providing them with greater confidence and security for the future,” commented Vinod Philip, Executive Vice President for Wind Power at Siemens Energy.
ABB said separately that this acquisition will significantly expand its existing power conversion product and service offering to renewables OEMs and end users.
“This targeted acquisition is in line with our commitments to grow our portfolio for high power renewable applications and support productivity in a low-carbon world. It will expand our engineering depth for power conversion and grid connection, and will add significant opportunity to service a large installed base,” said Chris Poynter, President of ABB’s System Drives division.