Federal government puts a stop to Chinese takeover
The German government can prohibit sales to non-EU countries in certain cases. In the case of MAN Energy Solutions' gas turbine deal with China, politics is now intervening. The company may only be able to continue operating a part of its business.
German Economy Minister Robert Habeck confirmed that the German government has prohibited the sale of MAN Energy Solutions' gas turbine business to a Chinese company on security grounds. The Economy Ministry considers the ban on the sale to the Chinese company CSIC Longjiang Guanghan Gas Turbine (GHGT) necessary because the technology will be used in "critical, relevant areas." Habeck did not want to give further details for the investment review.
"That was indeed the reason why we issued the prohibition," Habeck said. However, he emphasized that Germany is generally open to investments by foreign companies. However, there are restrictions, such as when there is a threat to security and order. Federal Interior Minister Nancy Faeser also confirmed the prohibition at a joint press conference with Habeck.
100 Employees in Oberhausen and Zurich
MAN Energy Solutions, with its 14,000 employees, originally belonged to MAN but went directly to Volkswagen in the course of the fusion of Scania and MAN into the truck holding Traton and is expected to remain part of the Wolfsburg concern at least until 2026.
MAN Energy Solutions, with its 14,000 employees, had already announced on Tuesday that it would accept the decision. According to company circles, the development of new gas turbines will then be stopped, but profitable maintenance should continue. MAN Energy Solutions currently produces and maintains gas turbines with 100 employees in Oberhausen and Zurich. These gas turbines are used for energy generation or as drives for pipelines - but possibly also for warships. GHGT is reportedly closely linked to the Chinese arms industry.
Volkswagen had agreed to sell the small division to China almost a year ago, but in September, MAN Energy Solutions confirmed that the transaction was being intensely reviewed by the government. Now, development and construction of gas turbines at MAN Energy Solutions are reportedly being stopped according to company circles. It is still unclear how many employees will be affected.
The defense industry is closely watching the situation with MAN Energy Solutions, given its involvement in armor and energy generation for potential military applications. Meanwhile, the defense sector itself has been witnessing a wave of takeovers and mergers, impacting the global economy. Among these developments, the recent prohibition of MAN Energy Solutions' gas turbine sale to a Chinese company by Robert Habeck and Nancy Faeser has raised significant concerns.
