German energy company Uniper has announced a restructuring of its engineering business following a strategic review, a move that will impact nearly 1,100 jobs.

The company said that going forward, the restructured engineering services will focus on decarbonisation and green customer solutions.

Its customer business will concentrate on hydrogen, renewable energies, net zero solutions, and industrial customer solutions (ICS).

Currently, the engineering unit caters to Uniper’s own fleet as well as its customers with a variety of power generation technologies. The business comprises various legal entities, which are located primarily in Germany and the UK.

The German firm stated that the unit so far could not make an independent financial contribution to the group result. This was the case in spite of continuously aligning with varying market conditions, pursuing new business opportunities, and making improvements.

According to the utility, its review determined that an independent engineering business in the existing setup will not be able to meet its strategic and financial expectations. The review has taken into difficult environment for the service market along with a disadvantageous cost position.

Uniper will discontinue its service business in the conventional sector. The business will be instead confined to engineering services to cater to operators of nuclear facilities.

The company said that it will finalise and close out all the ongoing projects as contractually agreed. Besides, in due course, the company will approach customers individually regarding the possible impact of the plans on existing co-operations.

Uniper revealed that the implementation of the plans will see wide-ranging changes across the organisation along with a considerable reduction in headcount. The plans also include the sale of individual business activities.

The company is expected to disclose further steps in the first quarter of 2022.

Uniper COO David Bryson said: “We, the Uniper Board of Management, and the management teams of the affected units will ensure, in close cooperation with co-determination, that a fair process is set up to achieve these necessary changes whilst avoiding hardships where possible.

“However, we are taking these steps in order to realign engineering competencies for a sustainable future within Uniper. In this way, we are following our decarbonization strategy, in the interests of our own assets and our customers.”

In August 2021, Uniper had said that it will retire one of its four units at the 2GW Ratcliffe-on-Soar Power Station in England in 2022.