The executive board of MAN Energy Solutions, the German engineering and technology group, is launching a comprehensive programme to ensure the future viability of the company that aims to turn it into a solutions provider, the company said in a statement.
“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,” MAN Energy Solutions said.
To achieve this, the company plans to cut its costs by €450 million 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,” it stated.
Adapting and optimising 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 programme will also focus on reducing the cost of materials and equipment, optimising the service network, streamlining the product range, cutting costs within the group functions, and focusing research and development on next-generation technologies, the company said.
