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MAN Energy Solutions sells gas turbine business to Chinese firm

MAN Energy Solutions sells gas turbine business to Chinese firm
Photo courtesy of MAN Energy Solutions

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.