The Covid-19 effect. MAN Energy Solutions is rethinking the company’s future and one of the keywords seems to be restructuring. The cornerstones of this process have been outlined on a join paper introduced by MAN Energy Solutions Executive Board and employees. According to the company, «The paper proposes a reduction of 2,600 jobs. In return, concessions related to labor costs are agreed upon that will allow the company to achieve its restructuring objectives». Moreover, «In order to meet the targeted cost cuts of 450 million euro the parties of the collective labor agreement will negotiate in order to achieve a reduction in personnel costs of around 40 million euros annually for the period from 2021 to 2023».
The Volkswagen Group apparently supports the agreement and «will suspend its plans to sell MAN Energy Solutions until the finalization of the restructuring efforts, which include job cuts, reduction of personnel cost and the relocation of products to foreign production centers. This will apply at least until the end of 2024. The Volkswagen Group has further agreed that the company will remain part of the group until at least the end of 2026 if it achieves a profitability target of 9% EBIT on a consistent basis by that date».
MAN Energy Solutions: restructuring to increase flexibility
Furthermore, according to MAN Energy Solutions Executive Board, due to the Covid-19 pandemic, sales will remain stagnant for quite a long time. Such a situation has to be faced somehow. Here, the word chosen by the company is flexibility. Let’s read from the official press release: «Adapting and optimizing the production network with a focus on core value creation and greater flexibility is a key component of the program. In this context, the company intends to halt steam turbine production in Hamburg and is also considering closing the production facility in Berlin and relocating production currently conducted there to another site. The program will also focus on reducing the cost of materials and equipment, optimizing the service network, streamlining the product range, cutting costs within the group functions, and focusing research and development on next-generation technologies».
A new entry in the Executive Board
Finally, MAN Energy Solutions announced a new entry in the Executive Board. Martin Oetjen has been appointed new member for Supply Chain and Production. The 52-year-old qualified engineer has already been responsible for the Supply Chain role since January 2020, as chief representative of the company.
Oetjen has already occupied various managerial positions in the company since 2012, and has been in charge of the Engine & Marine Systems strategic business unit since 2015.