Agreement with banks important prerequisite for continued reorientation of company
ENERCON has secured long-term financing with its banks and the Aloys Wobben Stiftung. As well as an existing credit, the agreement also covers a new guarantee facility. This in particular enables ENERCON to provide the guarantees necessary in other countries for large-scale onshore projects there. In addition, it is also planned that the external financing at group level – manageable in comparison to the total assets – will be repaid as scheduled. The agreement is initially valid until the end of 2023.
‘The arrangement gives us the planning security we need to continue successfully implementing the turnaround operations’, says ENERCON CFO Dr Thomas Cobet. ‘I am therefore very glad we were able to close talks with a good result.’ As well as safeguarding international business and stabilising project financing, Management also expects the agreement to normalise relations between ENERCON and its suppliers.
Following the collapse of the German onshore market, which has been the focus of ENERCON’s activities in the past, the company is now concentrating on international growth markets. ‘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’, says ENERCON CEO Hans-Dieter Kettwig. ‘As part of this strategic reorientation, the business segment of WEC 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 AG. 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.’
In addition to a new strategic focus, ENERCON’s reorientation also comprises structural changes to the company organisation, a drive to develop new competitive and cost-optimised wind energy converters, and optimising the global supply chain against the backdrop of tougher international competitive conditions. ‘The agreement with the banks lays the necessary foundation for us to consistently achieve our objectives in the turnaround. The trust and the banks are supporting the approach we have chosen. The agreement proves they are willing to head in this direction together with us’, says ENERCON CRO Dr Martin Prillmann. ‘Management firmly believes that with these preconditions, the unreserved support of our shareholder and the commitment of the ENERCON team, we will make a success of the turnaround in the set time frame of three years.’
Source: Company Press Release