Germany Blocks Sale of MAN Energy Solutions' Gas Turbine Division to Chinese Company

Germany's cabinet halted the sale of Volkswagen's MAN Energy Solutions gas turbine division to China's CSIC Longjiang GH Gas Turbine Co. The decision aligns with efforts to reduce economic risks with China. As a result, MAN Energy Solutions will cease gas turbine development but retain its service business.

Germany's cabinet blocked on Wednesday the planned sale of Volkswagen subsidiary MAN Energy Solutions' gas turbine division to a Chinese company, two government sources said.

The decision comes as Germany and the European Union try to reduce risks from economic ties with China. MAN Energy Solutions said last September that the German government would take a closer look at the planned sale to Chinese state-owned CSIC Longjiang GH Gas Turbine Co (GHGT), which was first announced in June 2023 at an undisclosed price.

GHGT belongs to the China State Shipbuilding Corporation (CSSC), which dominates the Chinese shipbuilding industry. Three people familiar with the matter had told Reuters on Tuesday that Germany would block the plans.

MAN Energy Solutions will wind down gas turbine development and production as a result of the blocked sale, one source had said, adding the group would keep the profitable turbine service business. Germany's Economy Ministry has the right to critically review and block transactions with regard to their implications for national security.

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