German turbine maker Enercon has agreed long-term financing with its banks and shareholder Aloys Wobben to support its turnaround plan.
The company said it will complete its turnaround within three years, when the financing agreement concludes in 2023.
The agreement covers a new guarantee facility as well as existing credit, which will enable Enercon to provide guarantees necessary in other countries for large-scale onshore wind projects.
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 “safeguard” international business and “stabilise” project financing.
Enercon is focusing on international onshore wind markets, following the “collapse” of the German onshore market, which has been the focus of the company’s activities in the past.
Enercon chief executive Hans-Dieter Kettwig said: ‘This is connected with a stronger focus on Enercon’s core business, namely the development, sales and service of onshore wind energy converters, and areas directly associated with this.
“As part of this strategic reorientation, the business segment of wind energy converter operation, energy generation and energy marketing will be transferred to a new company.
“A declaration of intent to establish a joint venture has been signed with the EWE.
“We are convinced that by outsourcing we will create a solid basis for sustainable further development, both of Enercon’s business model and the area of energy generation and marketing from onshore WECs, which will become increasingly significant in the next stage of the energy transition.”
Enercon’s turnaround includes structural changes to the company organisation, a focus on developing “competitive and cost-optimised” turbines and “optimising the global supply chain against the backdrop of tougher international competitive conditions”.