Siemens Energy to spin off industrial division

Siemens Energy announced Tuesday its intention to make its Transformation of Industries division an independent entity. The move aims to provide the business unit with enhanced entrepreneurial flexibility and unlock additional avenues for growth, according to a statement from the energy technology group.

Potential strategies for the spin-off include bringing in external investors or executing a capital market transaction. Siemens Energy intends to deconsolidate the division while maintaining a substantial minority shareholding. This strategic separation has been the subject of speculation for some time.

The Transformation of Industries division serves industrial clients and employs over 15,000 people. Its offerings include energy infrastructure for industrial applications, compressors for the oil sector, and hydrogen electrolyzers. This business line is distinct from Siemens Energy's other energy operations.

Last fiscal year, the division reported revenues of approximately 5.7 billion euros. This figure positions it as considerably smaller than the Grid Technologies division, which generated 11.3 billion euros, and Gas Services, with 12.2 billion euros. Siemens Energy noted that within the current corporate structure, Transformation of Industry competes for investment with faster-growing business areas. The company stated that altering the structure is necessary to avoid limiting the division's potential, as the current investment focus is on power generation and transmission.