The executive board of MAN Energy Solutions is launching a comprehensive program to ensure the future viability of the company, the company said in its release.
The executive board of MAN Energy Solutions is launching a comprehensive program to ensure the future viability of the company.
Extensive cost-cutting and restructuring measures are the necessary next steps on the way to the company’s transformation into a solutions provider for sustainable energy supply. In addition, the company is preparing for a prolonged period of stagnant sales as a result of the Covid-19 pandemic.
To achieve this, the company plans to cut its costs by 450 million euros and increase its operational flexibility, among other objectives.
The aim is to achieve an operating margin of 9% and improve the company’s cash and liquidity position by 2023, even taking the global economic impact of COVID-19 into account.
Adapting and optimizing the production network with a focus on core value creation and greater flexibility is a key component of the program. In this context, the company intends to halt steam turbine production in Hamburg and is also considering closing the production facility in Berlin and relocating production currently conducted there to another site.
The program will also focus on reducing the cost of materials and equipment, optimizing the service network, streamlining the product range, cutting costs within the group functions, and focusing research and development on next-generation technologies.
MAN Energy Solutions announced its new strategy in 2018, which describes the company’s transformation from a component supplier to provider of sustainable energy solutions. These new solutions are expected to account for 50% of its business by 2030.
The executive board expects that the implementation of the program will result in the elimination of up to 3,000 positions in Germany and 950 abroad. This reduction in the workforce will be carried out in a socially responsible manner as far as possible, although compulsory redundancies cannot be completely ruled out.