Posted August 6, 2020
The restructure of German marine propulsion company MAN Energy Solutions will mean the loss of up to 2600 manufacturing jobs, but owners Volkswagen have agreed not to sell the concern until after 2024.
The executive board and employee representatives of MAN Energy Solutions have agreed on a joint paper outlining the key points of its restructuring. In return for the job losses, concessions related to labour costs have been agreed upon that will allow the company to achieve its restructuring objectives.
The company will reduce the size of its Berlin site and operations here will be focused on the production of components. It will also keep its service business in Hamburg intact. It will, however, halt steam turbine production, which is also conducted 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 supports the agreements outlined in the paper, expecting that the necessary prerequisites for implementation will be successfully finalized by the end of 2020. Once this has happened Volkswagen will suspend its plans to sell MAN Energy Solutions until the finalization of the restructuring efforts. This will apply at least until 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.
By Jake Frith