ABB has signed an agreement to acquire the power electronics business of Gamesa Electric in Spain from Siemens Gamesa. The agreement includes transfer of two manufacturing plants located in Spain, as well as additional assets in the US, China, India and Australia.
Dec 18, 2024
Siemens Gamesa has reached an agreement to sell its power electronics business to ABB. The business, which is part of Gamesa Electric, designs and manufactures converters, inverters and control cabinets for wind, solar and storage industries. The generators business of Gamesa Electric is not included in the agreement and remains with Siemens Gamesa.
The parties have agreed not to disclose the purchase price. The agreement includes the transfer of around 400 employees, two manufacturing plants located in Spain, as well as additional assets in the US, China, India and Australia.
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As part of the transaction, both companies have entered into a long-term collaboration agreement through which ABB will provide power electronics to Siemens Gamesa turbines, both onshore and offshore.
With this agreement, Siemens Gamesa continues to progress in its strategy of focusing on its core business, while partnering with a global technological leader in the sector. The transaction will foster the growth of the Gamesa Electric power electronics business, reinforcing the future of its manufacturing plants and employees.
The transaction is expected to be closed in the second half of 2025 and is subject to regulatory approvals of the respective authorities.
Mr. Vinod Philip, Executive Vice President for Wind Power in Siemens Energy, said, “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.’’
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Mr. Chris Poynter, President of ABB’s System Drives division, said, “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 add significant opportunity to service a large installed base.’’
The acquisition strengthens ABB’s position in the growing market for high-powered renewable power conversion technology. It also aims to increase ABB’s serviceable power conversion installed base with the addition of around 40 GW, leveraging ABB’s global organization to access new service, modernization and repower opportunities.
