Enercon to get EUR 500m state support

German wind turbine maker Enercon GmbH will receive state support of EUR 500 million (USD 508.85m) to "cushion the impact of negative consequences from the Covid-19 pandemic".

The capital will be provided from Germany's Economic Stabilisation Fund (WSF) which was created in 2020 to prop up companies hit by the pandemic.

The liquidity support is meant to help the manufacturer stabilise as important projects have been delayed due to significant disruptions and unexpected extra costs for materials, components, transport and logistics that were caused by the pandemic, Enercon said in a press release.

As a result of the disruptions, the delivery of about 100 wind turbines has been delayed which means that the proceeds from their sale will come later, a spokesman for Enercon told news agency dpa-AFX on Wednesday. Meanwhile, the company needs capital to continue producing turbines at higher costs for materials, components and logistics.

So far, the manufacturer has been able to overcome the impact with of the pandemic with its own resources. However, the management decided to resort to state support as it is not foreseeable when the situation will return to normal, the spokesman said.

(EUR 1 = USD 1.018)

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