Siemens (SIEGY 3.47%) is sick of solar. The German company announced today that it plans to sell off its solar business activities and restructure its energy sector.
"The global market for concentrated solar power has shrunk from four gigawatts to slightly more than one gigawatt today," said Michael Suess, a Siemens board member and CEO of the Energy Sector. "In this environment, specialized companies will be able to maximize their strengths."
Siemens is an integrated technology company with sectors as distinct as health care and fossil power generation.
Existing contractual obligations will currently not be affected, the company said. It will continue to produce secondary solar products, such as steam turbines, generators, grid technology, and control systems.
In FY 2011, the full Siemens energy sector pulled in around $32.5 billion in sales and just over $5 billion in profit.
As Siemen steers clear of solar, it is focusing its energy sector on wind and hydro power. Its wind power division currently employs over 7,000 people and has an order backlog over more than $13 billion .
