Siemens AG  on Friday unveiled a plan to merge its Wind Energy Generation unit into its technology and mechanical drive business and then spin-off and publicly list the enlarged entity.

The move will create a company with an estimated annual revenue of about EUR 2 billion (USD 2.17bn), the German industrial giant said in an update to its performance for the second fiscal quarter. The plan is in line with its efforts to revamp the units within its portfolio companies.

Wind Energy Generation will become part of Flender GmbH -- a company that Siemens acquired back in 2005. The unit is involved in the production of mechanical drive systems, which are used in wind turbines and for other applications in the power generation, mining, oil and gas and other sectors. The combined business will be separated via a spin-off, with its shares to be listed publicly.

“This transaction will complete the company’s electrical and mechanical portfolio, making it an important tier-1 supplier to the wind power industry,” Siemens said.

Siemens’ shareholders will vote on the proposal at the next annual meeting in February 2021.