German wind turbine manufacturer Enercon has secured long-term financing with its banks to support plans to restructure and turnaround its business.
The company has been hit hard by the collapse of the German onshore wind sector and says that the financing deal with banks and its shareholder, Aloys Wobben Foundation, will provide the necessary guarantees for it to continue operations and complete a turnaround plan.
Enercon chief financial officer Thomas Cobet said: “The arrangement gives us the planning security we need to continue successfully implementing the turnaround operations.
“I am, therefore, very glad we were able to close talks with a good result.”
Enercon’s management said it expects the long-term financing agreement to “normalise” the company’s relationships with its suppliers as well as “stabilise” project financing. It will remain in place until the end of 2023, when the company is aiming to have completed its turnaround.
The company added in a statement that it has switched its focus away from the German onshore market to the international sector. It will also separate its wind farm ownership business into a new company.
Other areas of focus in the realignment of its business will include structural changes in the company organization, forced new developments in competitive and cost-optimized wind turbines, and optimisation of the global supply chain, Enercon said.
Earlier in June Enercon sealed a deal with Credit Suisse Energy Infrastructure Partners (CSEIP) to sell a majority stake in the 253 MW Markbygden 2 wind farm in Sweden.