MAN Energy Solutions will not be sold by its parent company, the Voltkwagen Group, until at least 2024, according to an agreement reached by MAN Energy Solutions’ executive board and employee representatives.
The agreement outlines the restructuring of MAN Energy Solutions, including a reduction of 2,600 jobs. The company plans to reduce the size of its Berlin operations, which will focus on producing components. Its service business in Hamburg will remain intact, but halt steam turbine production there. Restructuring measures have been agreed upon for the Augsburg and Oberhausen sites, and the organizations in Denmark, France, England, and Switzerland will also be streamlined.
The Volkswagen Group said it supports the agreement, expecting that the necessary prerequisites for implementation will be successfully finalized by the end of 2020. Volkswagen will then suspend plans to sell MAN Energy Solutions until restructuring is finalized, at least by the end of 2024. The Volkswagen Group has further agreed that the company will remain part of the group until at least the end of 2026 if it achieves a profitability target of 9% EBIT on a consistent basis by that date.