German chancellor Scholz ‘confident’ about Siemens Energy guarantee talks

German chancellor Olaf Scholz is confident that there will soon be a “good solution” to talks between government and banks about guarantees for Siemens Energy, he said as the industrial giant opened an electrolyser factory in Berlin.

Siemens Energy last month confirmed it was in talks about guarantees to strengthen its balance sheet and enable it to deliver “anticipated strong growth” as it fulfils its backlog of grid, gas and wind orders.

“The federal government is in very constructive and very goal-oriented discussions about what a necessary security package for this impressive volume of orders could look like,” Scholz said. 

“A banking consortium and Siemens AG are intensively involved in these discussions. I am confident that we will come to a good solution very soon if everyone now lives up to their responsibilities.”

Siemens Energy expects to announce a €4.5 billion loss for its 2023 fiscal year (1 October 2022-30 September 2023) later this month, with problems at its subsidiary Siemens Gamesa weighing heavy on the parent company.

Earlier this year, it confirmed quality problems with “certain rotor blades and main bearings” on Siemens Gamesa’s 4.X and 5.X onshore turbines.