Siemens closes the plants after the scandal with the Crimea

14 June 2018, 12:11 | Economy
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German concern Siemens intends to abandon the production of gas turbines. This became known Bloomberg. According to the agency, the company is now experiencing difficulties because of the reduction in the number of orders for similar equipment. According to experts, this is due to the fact that renewable energy sources are becoming more popular in the world, and gas turbines are no longer in demand. In this case, Siemens needs to get rid of a number of its plants as quickly as possible, while they can still find a buyer. However, the company does not yet have a definitive understanding of how best to turn the situation around. It is not ruled out that Siemens will prefer to join the competition, for example, with General Electric Co, to keep part of the business. One can also assume that the problems of Siemens arose because of the scandal with the so-called "Crimean turbines". Machines produced by the German concern were on the peninsula in defiance of international sanctions. Siemens demanded to return them to her, but the Russian arbitration decided that the turbines were delivered to the power plants of Crimea by legal means, and the equipment remained on the peninsula.

Meanwhile, disputes that have received international publicity pretty badly damaged the German concern in the West, which affected its profitability. In particular, in the autumn of last year the company's management was forced to take an extremely unpopular step - to cut almost 7 thousand. employees. However, in the concern itself they do not intend to dramatize the situation and point out that the turbine business is not an important part of the "industrial core" of Siemens.

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