Automatic translation
This article has been translated automatically using computer technology. While we strive for accuracy, some wording or details may differ from those in the original article.
This translation was not manually reviewed. For important facts, quotations or legally sensitive information, please consult the German original. Individual selections, images, embedded media or technical terms may have been translated differently or incompletely.

PRESS RELEASE IG Metall warns: Do not repeat the mistakes of the past in wind turbine construction

Joint Press Release from IG Metall and the General Works Council of Siemens Energy and Siemens Gamesa

IG Metall, Mainforum, Gebäude, Fahnen

9 September 2024 9 September 2024


Frankfurt am Main/Berlin – IG Metall and employee representatives from Siemens Energy are concerned about the latest developments in the expansion of wind energy. They warn of unfair competition from China with serious consequences for Germany as an industrial hub.

At stake, they say, are not only good jobs in the wind power industry, but also the energy transition as a whole and, in the long term, a secure energy supply. The federal government must now take targeted industrial policy measures, while wind farm operators must counteract this with responsible corporate strategies and rethink their procurement policies. Specifically, the employee representatives are calling for the rapid implementation of the European Net-Zero Industry Act to protect domestic jobs and value creation.

The warning stems from the preliminary contract for the order of 16 wind turbines for the Waterkant offshore project, with a total capacity of 270 megawatts, in China. This will mark the entry of the first Chinese suppliers into the German wind energy market. This is problematic because the Chinese government provides massive support to its wind energy companies, thereby distorting competition. As a result, domestic manufacturers and jobs are coming under pressure in one of the most important industries of the future, of all places, and economic dependence in the sensitive field of energy supply is increasing.

Jürgen Kerner, Second Chairman of IG Metall: “Following the solar industry, we are now exposing another future-oriented technology to the risk of falling victim to unfair competition. This must not happen. If Germany aspires to be a leader in green technologies, then we must shape this vision with clear political will.

The energy crisis following Russia’s attack on Ukraine has shown just how critical dependence can be. We must not lose control over critical infrastructure—and that includes energy systems. As IG Metall, we expect that, during construction, the security of the system will be prioritized over securing cheap components. Here, wind farm operators bear responsibility, just as policymakers must adjust tender conditions accordingly.”

Robert Kensbock, Chair of the General Works Council and Deputy Chair of the Supervisory Board at Siemens Energy: “We cannot explain to our colleagues how, from an industrial policy perspective, we can allow thousands of jobs to be jeopardized by unfair practices, or why we are not taking much stronger political action to ensure a genuine level playing field—that is, fair and transparent competitive conditions. Our colleagues expect to be protected from unfair practices.”

Horst Hakelberg, Chairman of the General Works Council and Deputy Chairman of the Supervisory Board at Siemens Gamesa Germany: “Policymakers must take steps to protect the wind energy sector so as not to jeopardize tens of thousands of jobs. At Siemens Gamesa Renewable Energy alone—which is wholly owned by Siemens Energy—approximately 27,000 employees work in the wind energy sector worldwide, including about 3,500 in Germany. Across Europe, approximately 300,000 employees are directly or indirectly employed in the wind industry. Above all, we must not deprive ourselves of the opportunity to implement the energy transition independently. It is essential that we avoid creating new dependencies.”

Similar to steel production and electric vehicles, China appears to be pursuing a strategy of dominating the market and squeezing out competitors in the wind turbine sector as well. Competitors from the Far East are apparently building up massive overcapacity—with government subsidies—to push into markets outside China. Already today, four out of five of the largest wind turbine manufacturers are based in China. For now, manufacturing and service capacities are still predominantly in the hands of German or European companies. However, the subsidized Chinese competition is already building up capacity in Europe and Germany.  

 

Subscribe to press releases