Siemens Energy appoints new head of embattled wind turbine unit.

• The 4.6 billion euro loss incurred by Siemens Gamesa's parent company was due to manufacturing faults.
• An investigation into quality issues was launched at the wind turbine division.

Siemens Energy announced on Wednesday that the CEO of its wind turbine unit will be replaced as part of "comprehensive restructuring measures."

Jochen Eickholt, CEO of Siemens Gamesa, informed the board that he will resign on July 31 and be replaced by Vinod Philip.

Jochen laid the central foundations for the urgently needed reorganization and new start within Siemens Energy, despite the quality problems not falling under his tenure as CEO, said Siemens Energy CEO Christian Bruch in a statement.

Gamesa has taken steps for long-term strategic development to increase operating margins through comprehensive restructuring measures.

In 2023, Siemens Energy faced significant challenges due to manufacturing faults at Gamesa, resulting in a 4.6 billion euro loss for the fiscal year. As a result, an investigation into quality issues was initiated within the wind turbine division.

In June, Siemens Energy abandoned its profit forecast and predicted that the costly failures at Gamesa could prolong for several years.

Over the past two decades, the wind industry has expanded rapidly, lowering costs to rival and sometimes undercut those of fossil fuels, while increasing efficiency with larger turbines and decreasing dependence on state subsidies. However, concerns arose among investors last year that Gamesa's difficulties might indicate a broader issue for the industry.

On Wednesday, Siemens Energy announced a net income of 108 million euros ($116 million) for the last quarter and improved its outlook for "better growth and positive cash flow."

—CNBC's Elliot contributed to this article.

This is a breaking news story, please check back later for more.