Download now: King Coal Triple Play

Siemens Leaving Nuclear Power Business for Good

Decision Based on Germany's Exit from Nuclear Power

Written by Cori O'Donnell
Posted September 20, 2011

Siemens (NYSE: SI) is following the lead of the German government and leaving the nuclear energy business entirely.

Siemens CEO, Peter Loescher, announced the company will no longer build or finance nuclear power plants in Germany or anywhere else.

"We will no longer be involved in overall managing of building or financing nuclear plants. This chapter is closed for us," says Loescher.

The company’s decision is partly based on the accident at Japan’s Fukushima, and also based on the German government’s decision to shut down any existing nuclear power plants by 2022.

Loescher says Siemens' decision was "an answer to the clear position of society and politics in Germany on exiting nuclear power."

Siemens decision is quite shocking because the company has history with nuclear power. In the 1970s and 80s it built nuclear power plants in West Germany.

Siemens partner, Rosatom, is concerned about Siemens’ decision. Rosatom is a Russian company that was set to benefit from having Siemens’ well-known name attached to them. Rosatom is now up against competitors like Areva and General Electric on its own.

"They (Rosatom's rivals) are all probably happy because the credibility of Rosatom in the international market would have been reinforced if they had Siemens as a partner," analyst Bernd Laux of Cheuvreux said.

Still, Rosatom remains supportive and understands why the decision was made.

"We understand the logic...It is clear it is not a slight against Rosatom," spokesman Sergey Novikov told Reuters in Moscow.

"Siemens has to follow the line of the German government which decided a total shutdown of nuclear assets...Rosatom and Siemens will continue to work together in other fields, including nuclear medicine," he added

Siemens will continue to produce hardware such as steam turbines, and they are focusing on developments with renewable energies, smart grid and water technologies.

That's all for now,

Cori


Energy demand will increase 58% over the next 25 years.

Trillions will be spent to secure the world's energy supply over the next two decades... and all sources are on the table.

Oil, Natural Gas, Solar, Wind. There will be money made.

Follow the money trail. Sign up for Energy and Capital now--It's free.

We never spam! View our Privacy Policy

By signing up, you'll also get our latest report, Six Oil & Gas Steals.


Related Articles

Renewable Energy Predictions
Editor Jeff Siegel discusses the latest studies on renewable energy growth.
Japan's Nuclear Woes Impact Germany, Solar Stocks
Guest contributor Brianna Panzica chronicles Germany's response to Japan's nuclear incident and what it means for solar stocks.
German Parliament Votes for Phase-Out
Guest contributor Brianna Panzica looks at the results of the German parliament's vote on phasing out nuclear power.


Where is the Oil Cycle?
Coal Investing Destroyed After Centuries of Dominance
Renewables Take Over
Marijuana Bank Investing
3 Guaranteed Profits: Gambling, Prostitution, and...
Russian Stocks are Cheap
Fortune Favors the Bold
Nuclear Investing After Iran Deal
Look at China
Invest in the Lithium Revolution
Lithium Demand is Going Berserk
Investing in the Tesla (NASDAQ: TSLA) Powerwall
Tesla (NASDAQ: TSLA) Just Killed Your Power Company
Tesla (NASDAQ: TSLA) Powerwall Investing
How to Make $800 Million in One Week!
Putin and Saudi Arabia: Oil Dream Team Meet
Marijuana Bank Investing
3 Guaranteed Profits: Gambling, Prostitution, and...