Siemens Gamesa Renewable Energy (SGRE) has revealed its intentions to generate cost savings of €2bn in the period between 2018 and 2020.

The wind turbine manufacturer plans to implement a series of measures to reach the cost saving target, which includes faster delivery of the targeted merger synergies. SGRE revealed that the synergies are estimated to be more than €400m by 2020.

The company would also be looking to fine-tune its product portfolio, procurement and industrial footprint and also a restructuring program, which is in progress.

Last year in November, SGRE announced that it would cut about 6,000 jobs across its global operations as part of the restructuring program.

The wind turbine manufacturer has come up with a 2018-2020 strategic plan, which focuses on driving profitable growth and also on measures needed for achieving the cost-cutting target.

Siemens Gamesa said that the strategic plan lays the foundation in 2018 for sustainable and profitable growth in the years to come.

The company is hoping to dominate the market in terms of sales and at the same time maintain strict balance-sheet control, amid growing competition.

In this regard, Siemens Gamesa has rolled out the three-year program, dubbed as L3AD2020, which has been articulated around three strategic cornerstones.

The first of the strategic cornerstones is business model agility, through which the company plans to offer greater flexibility to its customers in terms of products and services, financial solutions and also response times.

The second is to bring in cost streamlining and operational excellence by implementing the best-in class LCoE (Levelized Cost of Energy).

Siemens Gamesa will be implementing digital intelligence as the third strategic cornerstone, which it believes could help differentiate it against its rivals.

Siemens Gamesa CEO Markus Tacke said: “The measures rolled out in recent months, coupled with the strategic plan we are presenting today, set Siemens Gamesa on track for strong profitable growth that will enable us to create more value for our shareholders and customers, fully bearing out the merger rationale and positioning us as leaders in an increasingly competitive environment".

The company has revealed that it will carry on exploring businesses that complement its core wind business, like solar power, energy storage and hybrid technology.

Image: Wind turbine manufacturer Siemens Gamesa is aiming at a €2bn cost-saving target for 2018-2020. Photo: Courtesy of Falk Schaaf/FreeImages.com.