Siemens Energy shares fell nearly 40% on Thursday, sending its market value down €3 billion ($3.16 billion), after the group said it was in talks with the German government for state guarantees following major setbacks at its wind power unit.
Quality problems emerged this year at the power engineering company’s wind unit Siemens Gamesa centred on rotor blades and gears in newer onshore wind turbines, drawing the ire of top shareholder and former parent Siemens AG.
Siemens Gamesa has booked billions in related losses.
Siemens Energy is therefore concerned that it will have difficulty getting guarantees from banks and has asked the government to set up a guarantee structure.