NEWTOWN, Conn. -- The success of the Siemens SGT-8000H family of gas turbines in the current environment of overcapacity, depressed prices, and large inventories of unsold or underutilized units must be a significant relief for Siemens. The company has made no secret of the fact that it is finding the current market an exceptionally difficult one, as it struggles to hit its sales and profitability targets.
It is significant that every combined-cycle power plant currently being projected envisions a choice between the MHPS 501/701JAC, the SGT-8000H, and the GE 9HA. Of these three, 2018 saw the MHPS product achieve the most significant results in both technical and sales terms. This highlights the severity of the problems facing both GE and Siemens.
However, as the situation is fluid, this can easily change. One very interesting feature of the Lordstown Energy Center contract is that Siemens took a 27 percent share in the investment and equity of the facility. This was probably a major factor in winning that highly critical order. Other companies will undoubtedly observe this tactic at work and attempt to emulate it.
The Egyptian order gave Siemens dominance in the short term, but the successful 2018 sales record of MHPS has put that group in the driver's seat - at least, again, in the short term. From a meta-forecast point of view, sales of Siemens, GE, and Mitsubishi are likely to be running almost level in the medium and long term.
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