German government grants Siemens Energy a loan guarantee to help secure the company
The German government says it is granting a 7.5 billion-euro ($8 billion) loan guarantee to energy technology company Siemens Energy as part of a package to help the firm
BERLIN (AP) — The German government said Tuesday it is granting a 7.5 billion-euro ($8 billion) loan guarantee to energy technology company Siemens Energy as part of a 15 billion-euro package to help the firm, an important player in the transition to renewable energy sources.
Siemens Energy sought help from the government as it struggles with problems at its Gamesa wind energy subsidiary, including quality issues with previously installed wind turbines.
The company said on Oct. 26 that “the strong growth in order intake, particularly in the former gas and power business areas, leads to a rising need of guarantees for long-term projects.” It said it was in talks with partners, including the government, to ensure access to guarantees "to facilitate the anticipated strong growth."
The government held talks with Siemens Energy, industrial conglomerate Siemens AG — which spun off Siemens Energy in 2020 and retains a minority stake in the company — and with private banks.
