German turbine manufacturer Enercon is to receive €500m from Germany’s state Economic Stabilisation Fund (ESF) to help “cushion the impact of negative consequences from the Covid-19 pandemic”.
The company said that the interdepartmental Economic Stabilisation Fund Committee has approved the state liquidity assistance, which is intended to stabilise Enercon’s supply chain.
Enercon said it is currently undergoing a transformation “with clear prospects for continuation with high asset value and an excellent equity capital base”.
It is working on a solid financial basis and aims to end 2022 with a break-even result, the company said.
“However, the Covid-19 pandemic has caused significant disruptions to the global supply chains, unexpected extra costs (materials, components, transport and logistics) and has ultimately resulted in delays to important projects,” Enercon added.
The company said the situation has not yet returned to normal and the “rising infection rate in China once more means a further increase in coronavirus-related supply chain risks can be expected”.
It added: “Up until now, Enercon has been able to absorb the challenges by itself.
“However, this has taken a huge effort and considerable reserves. In order to minimise liquidity risks, Management has decided to make use of a state credit line from the ESF.”
The ESF serves to stabilise the economy following the Covid-19 pandemic.
It provides companies across different sectors with stabilising measures to strengthen their capital base and overcome liquidity shortfalls.