Siemens to Build Wind Turbine Production Plant in the UK


Target: Expansion of market leadership in offshore wind power

Siemens Energy is to build a new production plant for offshore wind turbines in the UK. With the new plant Siemens wants to meet the growing demand for wind turbines for British offshore projects. As world market leader in the offshore sector Siemens has already successfully implemented eleven projects with a combined capacity in excess of one gigawatt (GW), with more than half in the UK. In the future, the UK market will continue to grow significantly: From 2015, it is anticipated that more than 1000 wind turbines will be erected in British waters.

"With the new wind turbine production plant in the UK we're pushing ahead with our strategy of investments in attractive growth markets for ecofriendly technology. In the foreseeable future the wind power market in the UK will be characterized by major offshore projects, and we'll extend our market leadership with the new production plant," said Peter Löscher, President and CEO of Siemens AG. In Round 3 of the development program it is anticipated that offshore projects with a combined capacity of 32 GW will be implemented in the UK by 2020, which could meet a quarter of Britain's power demand. At the beginning of the year, Siemens Financial Services secured the go-ahead together with Mainstream Renewable Power for development of the Hornsea 4-GW zone as part of Round 3.

"The British government has established attractive terms and conditions for investors in renewables. This applies in particular to offshore wind power," said Andreas J. Goss, CEO of Siemens UK. "The planned production plant in the UK will create more than 700 new jobs. There will also be more new jobs in the area of logistics and at suppliers. We're intending to make investments in the high double-digit million range." Siemens is currently appraising the suitability of potential sites for the production plant, both on the east coast and in the northeast of the UK, with a special focus on the harbor infrastructure.

Siemens has accumulated 19 years of experience in the erection of offshore wind turbines and has a current order backlog of more than 3000 MW. In the UK Siemens is market leader both for onshore and offshore wind power. Today, approximately 40 percent of the wind power generated in the UK is produced with Siemens wind turbines. Siemens is also leader in the UK in the grid connection of offshore wind farms. The company has been contracted to execute grid connection for three-quarters of the projects.

For example, Siemens Energy will not only supply 75 of its high-performance wind turbines, each rated at 3.6 megawatts (MW) and with a rotor diameter of 120 meters, for the British wind farm Lincs, but has also been contracted to implement the grid connection. For the London Array offshore wind farm, which will have a capacity of 630 MW Siemens will supply 175 wind turbines and has also been contracted to implement the grid connection scheduled for 2012.

In order to achieve the target of becoming one of the world's three leading producers of wind turbines by 2012, Siemens is expanding its wind power production capacities worldwide. Back in 2007, Siemens opened a rotor blade production facility in Iowa, USA. In Kansas, the company is also building a nacelle production plant. In the middle of the year Siemens wants to start operations at a wind turbine manufacturing plant in China. The company has also announced the construction of a production facility in India. It is anticipated that the first turbines will be built there in approximately two years time.

Wind power products and solutions are part of Siemens' Environmental Portfolio. In fiscal 2009, revenue from the Portfolio totaled about EUR23 billion, making Siemens the world's largest supplier of ecofriendly technologies. In the same period, the company's products and solutions enabled customers to reduce their CO2 emissions by 210 million tons. This amount equals the combined annual CO2 emissions of New York, Tokyo, London and Berlin.

The Siemens Energy Sector is the world's leading supplier of a complete spectrum of products, services and solutions for the generation, transmission and distribution of power and for the extraction, conversion and transport of oil and gas. In fiscal 2009 (ended September 30), the Energy Sector had revenues of approximately EUR25.8 billion and received new orders totaling approximately EUR30 billion and posted a profit of EUR3.3 billion. On September 30, 2009, the Energy Sector had a work force of more than 85,100. Further information is available at: http://www.siemens.com/energy.

Siemens AG

Corporate Communications and Government Affairs

Wittelsbacherplatz 2, 80333 Munich

Germany

Media Relations:

Torsten Wolf

Phone: +49 9131 18-82532

E-mail: torsten.tw.wolf@siemens.com

Siemens AG

Energy Sector - Renewable Energy Division

Freyeslebenstr. 1, 91058 Erlangen,

Germany

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