MAN Energy Solutions sells gas turbine business to Chinese firm
MAN Energy Solutions is selling its gas turbine business to China’s CSIC Longjiang GH Gas Turbine Co Ltd (GHGT). MAN Energy Solutions said it is adjusting its portfolio to focus on solution offerings for decarbonisation and opening up long-term growth prospects for the product area.
A corresponding purchase agreement was signed this week with CSIC Longjiang GH Gas Turbine Co Ltd, according to MAN Energy Solutions.
Based in Harbin, China, GHGT focuses on building small and medium-sized industrial gas turbine systems, with a power range from 5 to 50 megawatts, to meet the market demand in the oil & gas field, natural gas pipeline boosting, offshore engineering, distributed energy, hydrogen energy utilisation and other fields.
MAN Energy Solutions made the decision to separate from the product area as part of its “Performance 2023” program, which was launched in 2020. The sale of the gas turbine business is a logical next step on the road to transformation into a solution provider for sustainable energy supply, the company said.
The transaction is subject to receipt of the necessary regulatory approvals and fulfillment of other closing conditions. Financial details of the transaction have not been disclosed.
To date, MAN Energy Solutions has produced and serviced MGT gas turbines of up to 8 megawatts in size at its sites in Oberhausen, Germany, and Zurich, Switzerland, among other things, for use as mechanical drives or for power generation. This product area is now no longer central to the company’s growth strategy.
The sale includes a five-year site guarantee in Oberhausen and Zurich, thus ensuring not only the further development of the gas turbine series but also the preservation of the jobs concerned in Oberhausen and Zurich under the new ownership. In addition, its existing customers will continue to be served by their existing contacts after the sale.
The gas turbine business currently has approximately 80 employees in Oberhausen as well as approximately 20 employees in the maintenance of installed turbines at MAN PrimeServ in Zurich. The sale will have no effect on the other employees at the MAN Energy Solutions sites in Oberhausen (around 1,600) and Zurich (around 800) or on the other products and solutions manufactured there.