Siemens Energy has announced it expects to lose €4.5 billion this year, with the wind turbine side of its business suffering steep losses.

While other parts of the company (such as traditional power generation) are reportedly strong, the wind turbine business, Siemens Gamesa’s 4.X and 5.X onshore wind turbines (in particular the rotor blades and main bearings) have been plagued by faults which chief executive Christian Bruch have said are “more severe than I thought possible”. A factor in the faults has been, according to Jochen Eickholt, chief executive of Siemens Gamesa, a rush to market because of competitive pressures (partly induced by ambitious decarbonisation targets).

The company, Mr Eickholt said, had “sold turbines too quickly [that] had not been sufficiently tested.” Siemens Energy, as the mother company, took full control of Gamesa in June, and will now attempt to turn the daughter company around. The challenge is a stark one, as the wind turbine faults have led to a €6 billion loss in company value since their disclosure in June.

The company had originally expected to lose around €1 billion this year, a sign of the magnitude of the faults.