camelot-forum.co.uk

The German government is in talks to provide a multibillion-euro bailout to the engineering company Siemens Energy to shore up its balance sheet amid increasing problems at its wind turbine division.
Shares in the company, one of the world’s biggest makers of wind turbines, plunged by almost 40% to all-time lows on the German stock exchange, wiping €3bn from its market value, after reports emerged that it was in talks to secure government guarantees as part of a €15bn rescue package.

A bailout could result in the German state taking responsibility for 80% of an initial €10bn funding tranche, while banks would be liable for the remaining 20%, according to reports in the German press.
The engineering group’s parent company, the industrial firm Siemens, has reportedly been asked to guarantee a second tranche of the remaining €5bn.
...
Shares in Siemens Energy have fallen by almost 70% since June when it revealed there were escalating challenges in its wind turbine arm, Siemens Gamesa, caused by a string of technical problems as well as higher costs due to the inflation.
The cost of correcting the technical faults, which have affected its newest onshore wind turbine models, are expected to drive the company to a €4.5bn loss this year.

Moxi wrote: ↑Fri Oct 27, 2023 9:47 am I didn't think the EU competition rules allowed governments to bail out indigenous companies ? Germany and France always seemed to be the most vociferous when ever it was suggested for British industries in the past ? yet they seem to be able to bend the rules whenever it suits their purposes ?
Moxi

Is crisis at Siemens Energy symptom of a wider wind power problem? Rising construction and financing costs are likely to require fresh policies from the UK and US.
One of the world’s biggest wind turbine makers has reignited concerns over the headwinds facing the industry after losing billions in market value this week. Shares in Siemens Energy, the owner of the turbine manufacturer Siemens Gamesa, plummeted after it emerged that the company was in rescue talks with the German government to secure €15bn of guarantees to shore up its balance sheet. The company expects heavy losses this year after faults were discovered in its newest turbine models.

Claudia Kemfert, an energy expert at the German Institute of Economic Research in Berlin, said that while Siemens’ wind power woes were “tragic” they were not emblematic of the wind industry, which was in good shape overall.
“Wind power is literally on the rise globally,” Kemfert said. “The problems at Siemens Gamesa are homemade. The group must get a grip on quality problems. The fact that this has not been done to a sufficient degree to date is astonishing and must be changed.”

Still, some fear that a troubling trend has emerged: the climbing costs of financing and building windfarms have created headwinds for those constructing offshore windfarms around the world...