Siemens Gamesa sells power electronics business to ABB

Spanish-German wind engineering firm Siemens Gamesa has signed an agreement with ABB to sell its power electronics business, a division of Gamesa Electric. The companies have not disclosed the deal amount.

The sale, which was announced on Wednesday, includes the transfer of about 400 employees, manufacturing plants in Spain, and assets in the US, China, India, and Australia. Both companies also entered a long-term collaboration, with ABB supplying power electronics for Siemens Gamesa turbines.

The power electronics business designs converters, inverters, and control cabinets for wind, solar, and storage industries. The generators business will remain with Siemens Gamesa.

Vinod Philip, executive vice-president for wind power at Siemens Energy, said the decision is in line with Siemens Gamesa’s focus on its core business.

“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,” Philip said.

“Nevertheless, through this co-operation 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,” he added.

The deal, subject to regulatory approvals, is expected to close in late 2025.