Siemens Energy in Negotiations with Federal Government for State Guarantees

DJ Scholz: Siemens Energy is a “very important” company

By Andrea Thomas

BERLIN (Dow Jones)–Chancellor Olaf Scholz has emphasized the importance of the company Siemens Energy. Scholz did not want to comment further on the company’s negotiations with the federal government about state guarantees at a press conference at the end of the meeting of EU heads of state and government in Brussels.

“Siemens Energy is a very important company, that is without question. Otherwise, I can report to you that we are in very good and confidential discussions with each other,” said Scholz. For confidentiality reasons, he will not report on the conversation.

In view of the problems in the wind energy business, Siemens Energy had confirmed the day before that it was negotiating state guarantees with the federal government. Due to the sharp increase in incoming orders, particularly in non-wind turbine businesses, the company is in discussions with partner banks and the federal government to ensure access to a growing volume of guarantees that will enable the expected strong growth.

Wirtschaftswoche had previously reported that Siemens Energy was negotiating guarantees with a total volume of 15 billion euros. For a tranche of 10 billion euros, the federal government should guarantee 80 percent and the banks 20 percent. According to the report, the former parent company Siemens, which currently still holds 25.1 percent of the shares, will guarantee another 5 billion euros. According to financial and government circles, Siemens shows little inclination to accept responsibility for this. Siemens and the Ministry of Economic Affairs did not want to comment on the report.

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(END) Dow Jones Newswires

October 27, 2023 09:36 AM ET (1:36 GMT)

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