MAN ES to close gas turbine division after Germany vetoes sale to Chinese shipyard group

Germany’s cabinet has formally blocked the planned sale of MAN Energy Solutions’ gas turbine division to China Shipbuilding Industry Corp (CSIC). 

The sale to state-run CSIC Longjiang Guanghan Gas Turbine (GHGT) was announced on 20 June 2023 and a corresponding purchase agreement was signed. 

But the deal has triggered the German government’s use of the Foreign Trade and Payments Act to prohibit sales to non-EU countries. As a result of Germany’s decision to cancel the deal, MAN ES said it will have to close down its gas turbine division.

A MAN ES spokesperson told Riviera, “We confirm the German government has decided not to authorise the sale of our gas turbine division to CSIC Longjiang GH Gas Turbine Co Ltd. We respect the government’s decision.” 

“MAN Energy Solutions will now initiate a structured process to close down the gas turbine division, which will take place over the coming months. We will conduct this with the utmost care, taking into account the interests of our employees, customers and partners. Further information will follow in due course."

Germany’s decision comes at a time when the European Union and other Western countries are re-evaluating trade deals with China to rebalance advantages in new technologies and military capabilities.

Sectors such as Chinese electric vehicles, for instance, face possible tariffs while Germany reports its exports to China have dropped 14%, a major year-on-year decline.

CSIC GHGT is a subsidiary of China State Shipbuilding Corp (CSSC) headquartered in Harbin, China. The company develops small and medium-sized gas turbines in a 5 to 50-MW range as well as high performance and combustion technologies.