Siemens AG (SIE) plans to give up its unprofitable solar-energy business after failing to turn the unit around, in a blow to the German engineering company’s effort to win more revenue from its so-called green portfolio.
Siemens Exits Solar Business in Setback for Green-Portfolio Push

Siemens is offering the asset to potential buyers, the Munich-based company said in a statement today. The company will also end its membership in a high-profile venture to generate renewable energy in the Sahara desert. Siemens will keep its wind and hydro-power activities, the company said.

“Due to the changed framework conditions, lower growth and strong price pressure in the solar markets, the company’s expectations for its solar energy activities have not been met,” Siemens said in the statement.

Siemens is pulling the plug on a business created with acquisitions including Archimede Solar Energy and Solel Solar Systems in 2009, as deteriorating prices for photovoltaic modules have made concentrated solar power less attractive. The solar-power activities had been unprofitable since Siemens bundled the operations into a separate unit a year ago.