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BERLIN/FRANKFURT, Feb 1 (Reuters) - U.S. chipmaker Wolfspeed (WOLF.N) will build a $3-billion chip plant and a research and development centre in Germany, it said on Wednesday, expecting to start construction within months provided it receives subsidy approval from the European Union. Automotive supplier ZF (ZFF.UL) will invest $185 million for a stake in the chip fab and will take a majority stake in the research centre, the companies said. Wolfspeed expects to receive 20% of the investment amount in subsidies, Chief Executive Gregg Lowe told German newspaper Handelsblatt. Volkswagen, Europe's top carmaker, earlier this month warned that the chip squeeze meant 2023 would remain volatile and challenging, but expected supplies to improve. The company announced in September a new plant in the United States due for completion in 2030.

The company, which nearly collapsed after Moscow cut and then stopped gas supplies to Germany, now sees a net loss of 19.1 billion euros ($21 billion) for 2022, it said on Wednesday. It said on Wednesday that losses caused by costs to replace Russian gas volumes reached 13.2 billion euros in 2022. "The development of the gas price has a major impact on Uniper's losses for realized and future gas replacement procurement. She said the significant decrease in gas prices at the end of 2022 meant expected losses for future gas replacement costs were reduced to 5.9 billion euros from 30 billion euros. "The actual losses and anticipation of losses from gas replacement cost in the future will continue to significantly fluctuate with changing gas prices," Uniper said.

☆ Wolfspeed to build $3-bln EV chip plant in Germany
▼ + stars: | 2023-02-01 | by ( ) www.reuters.com time to read: +3 min

BERLIN/FRANKFURT, Feb 1 (Reuters) - U.S. chipmaker Wolfspeed (WOLF.N) will build a $3-billion chip plant in Germany, with automotive supplier ZF (ZFF.UL) investing $185 million for an equity stake, company officials said on Wednesday, confirming an earlier Reuters report. ZF's share of the factory's chip output will be defined by a separate contractual agreement, the companies said. "This is an important sign that Germany continues to be attractive even in difficult circumstances for high-tech investments," he said. "Amid the concerns that the U.S. wants to divert investments from Europe with its Inflation Reduction Act, we're showing that a U.S. firm wants to invest in Germany," a German government source said. The company announced in September a new plant in the United States due for completion in 2030.

☆ Wolfspeed to announce EV chip plant in Germany, sources say
▼ + stars: | 2023-02-01 | by ( ) www.reuters.com time to read: +3 min

BERLIN/FRANKFURT, Feb 1 (Reuters) - German chip supplier ZF Friedrichshafen (ZFF.UL) and U.S. chipmaker Wolfspeed (WOLF.N) will announce plans on Wednesday to build an electric vehicle chip plant in the Saarland region, according to three sources close to the matter. "This is an important sign that Germany continues to be attractive even in difficult circumstances for high-tech investments," he said. "Amid the concerns that the U.S. wants to divert investments from Europe with its Inflation Reduction Act, we're showing that a U.S. firm wants to invest in Germany," a German government source said. Volkswagen, Europe's top carmaker, earlier this month warned that the chip squeeze meant 2023 would remain volatile and challenging, but expected supplies to improve. Wolfspeed specialises in silicon carbide chips, which have been gaining traction with electric car makers as they can handle high voltages and are more power efficient.

FRANKFURT, Jan 31 (Reuters) - A top-10 shareholder of Bayer (BAYGn.DE) on Tuesday called on the group's supervisory board head to replace chief executive Werner Baumann quickly, adding to investor pressure to restore trust and revive the German drugmaker's sagging share price. But shareholders have also cited a lack of market trust in its top management as a growing burden. "When it comes to CEO succession we say: the sooner the better," Markus Manns, a portfolio manager at Union Investment, one of Bayer's 10 biggest shareholders, told Reuters. Union Investment's Manns cautioned that the non-executive supervisory board may need time to find a qualified candidate. A Bayer spokesperson said the company was always open to a constructive dialogue with shareholders and declined to comment further.

☆ Germany's Leopard tank move puts spotlight on its maker: Rheinmetall
▼ + stars: | 2023-01-25 | by ( Christoph Steitz | ) www.reuters.com time to read: +4 min

A day later, Germany's long-awaited decision to send heavy Leopard tanks to Ukraine, which Rheinmetall produces jointly with peer Krauss-Maffei Wegmann, pushed shares in the nearly 134-year old firm to a record high. You can see that right now in Ukraine," Papperger, a trained engineer who joined Rheinmetall in 1990, said. The group has said it can deliver a total of 139 Leopard tanks - 51 of the model 2 and 88 of the older model 1 - to Ukraine. Rheinmetall has said that 29 of the Leopard 2A4 tanks could already be delivered by April or May. Analysts at Stifel Equity Research estimate Leopard deliveries could bring in between 300 million euros and 350 million euros of sales for Rheinmetall this year and next.

☆ Tank maker Rheinmetall raises sales view as Ukraine war boosts demand
▼ + stars: | 2023-01-24 | by ( ) www.reuters.com time to read: +3 min

Shares in Rheinmetall, which together with Krauss-Maffei Wegmann makes the Leopard tanks Germany is under pressure from Kyiv and some allies to send to Ukraine, have risen 170% in the past year. For 2022 the company expects sales of 6.5 billion euros. A company spokesperson told media group RND that it could deliver 139 Leopard tanks to Ukraine if needed. It could also supply 88 older Leopard 1 tanks, the spokesperson said, without giving a timeframe for potential delivery. It said positives, including mid-term defence spending, had been priced into the stock.

☆ Rheinmetall could deliver 139 Leopard tanks to Ukraine - RND
▼ + stars: | 2023-01-23 | by ( ) www.reuters.com time to read: +1 min

Lehtikuva/Heikki Saukkomaa via REUTERSFRANKFURT, Jan 24 (Reuters) - German defence group Rheinmetall (RHMG.DE) could deliver 139 Leopard battle tanks to Ukraine if required, a spokesperson for the company told media group RND. Germany is coming under intense pressure from Ukraine and some NATO allies, such as Poland, to allow Kyiv to be supplied with German-made Leopard 2 tanks for its defence against Russia's invasion. German Chancellor Olaf Scholz has so far held back from supplying the tanks or allowing other NATO countries to do so. Manufacturer Rheinmetall could deliver 29 Leopard 2A4 tanks by April/May and a further 22 of the same model around the end of 2023 or early 2024, the spokesperson was quoted as saying. It could also supply 88 older Leopard 1 tanks, the person said, without giving a timeframe for their potential delivery.

Below are answers to the most urgent questions:HOW HAS GERMANY RESPONDED TO THE LOSS OF RUSSIAN GAS? Germany launched a multi-layered strategy to reign in demand and source alternatives following Russia's invasion of Ukraine and the subsequent decline in gas deliveries. Germany is now getting more pipeline gas from neighbouring Europe and Norway, buying liquefied natural gas (LNG) via existing European terminals, and constructing new LNG terminals on German coastlines, as well as achieving gas savings. Gas stocks are 89% full, enough to get Germany to the end of March even in a prolonged cold spell, according to most recent statistics, before re-filling starts in the April to September storage season. As a rule of thumb, Germany depletes its stocks by a rate of around 1% per day if temperatures fall below zero degrees, the regulator has said.

☆ Siemens Energy cuts profit outlook as Siemens Gamesa woes continue
▼ + stars: | 2023-01-19 | by ( Christoph Steitz | ) www.reuters.com time to read: +3 min

SummarySummary Companies Siemens Gamesa reveals higher warranty, maintenance costsProblems trigger 472 mln euro hit in Q1Parent Siemens Energy cuts 2023 profit outlookFrankfurt-listed Siemens Energy shares fall 4.8%FRANKFURT, Jan 19 (Reuters) - Siemens Energy on Thursday slashed its 2023 profit outlook after faulty components at the wind turbine fleet of its Siemens Gamesa unit led to higher warranty and maintenance costs, marking the latest setback in the group's troubled relationship. Siemens Energy shares were down 4.8% in late Frankfurt trade. Siemens Gamesa earlier reported a 760 million euro ($823 million) loss before interest and tax pre-purchase price allocation and before integration and restructuring costs for the first quarter, including a 472 million euro charge. Siemens Gamesa Chief Executive Jochen Eickholt, who joined the Spanish-listed firm from Siemens Energy last year, has already announced far-reaching job cuts and pledged to turn around the loss-making firm, the world's top maker of offshore wind turbines. Siemens Energy kept its outlook for sales excluding currency translation and portfolio effects, still expecting them to grow by 3%-7%.

☆ Northvolt says 'believes in Germany', battery plant talks ongoing
▼ + stars: | 2023-01-18 | by ( Victoria Waldersee | ) www.reuters.com time to read: +2 min

BERLIN, Jan 18 (Reuters) - Northvolt believes in Germany as an industrial location and continues discussions on building a battery plant there, it said on Wednesday amid speculation that the Swedish battery maker could divert its planned investment to the United States. There are certain requirements in order to make this feasible in competition with the United States," Nicolas Steinbacher, Head of Strategy and Program for Northvolt in Germany, said at a battery conference in Berlin. "We are working together with the government in a spirit of trust to solve these challenges," he added. The company is holding fortnightly citizen consultations in Heide in northern Germany, where it signed a memorandum of understanding with the state of Schleswig-Holstein in 2022 for a possible battery plant. Reporting by Victoria Waldersee; Editing by Christoph Steitz and Tomasz JanowskiOur Standards: The Thomson Reuters Trust Principles.

☆ Germany's gas situation is secure this winter, regulator says
▼ + stars: | 2023-01-17 | by ( ) www.reuters.com time to read: 1 min

[1/2] The landfall facilities of the 'Nord Stream 1' gas pipeline are pictured in Lubmin, Germany, March 8, 2022. REUTERS/Hannibal HanschkeBERLIN, Jan 17 (Reuters) - Germany's gas supply situation is secure and gas shortage is unlikely to happen this winter, the head of the country's network regulator said on Tuesday. "With savings, gas inflows, good storage levels ... We are very, very optimistic that we will no longer have to worry about a gas shortage this winter," Klaus Mueller said at an energy summit organised by Handelsblatt newspaper. Mueller said he expected a relatively warm winter which will help the power supply situation in both France and Germany. Reporting by Riham Alkousaa, Christoph Steitz and Vera Eckert Editing by Paul CarrelOur Standards: The Thomson Reuters Trust Principles.

☆ Uniper CEO: Nord Stream can be fixed, but unclear if Germany wants Russian gas
▼ + stars: | 2023-01-17 | by ( ) www.reuters.com time to read: 1 min

Companies Uniper SE FollowGazprom PAO FollowFRANKFURT, Jan 17 (Reuters) - The damaged Nord Stream pipelines can be fixed in around six months to a year, the boss of bailed out German gas trader Uniper said on Tuesday, adding that it still remained unclear whether Germany wants the supply relationship to continue. "The first question that needs answering: what's the political will on a European level and in Berlin to bring Russian gas to Germany?" outgoing Uniper (UN01.DE) CEO Klaus-Dieter Maubach told the annual Handelsblatt Energy summit. Reporting by Christoph Steitz and Vera Eckert; editing by Matthias WilliamsOur Standards: The Thomson Reuters Trust Principles.

☆ E.ON CEO: efforts to cut gas consumption must continue
▼ + stars: | 2023-01-17 | by ( ) www.reuters.com time to read: 1 min

FRANKFURT, Jan 17 (Reuters) - E.ON (EONGn.DE) CEO Leonhard Birnbaum said it was too early to give the all-clear regarding Germany's energy crisis, saying efforts to cut consumption needed to continue to avoid gas shortages and save costs. Reporting by Christoph Steitz Editing by Paul CarrelOur Standards: The Thomson Reuters Trust Principles.

Jan 17 (Reuters) - Montfort has emerged as the top bidder for Uniper Energy's oil refinery in the UAE that produces low-sulphur fuel oil for the shipping industry, multiple sources familiar with the matter said this week. The companies are finalising the deal, some of the sources said, although one source said the deal has been closed. Other companies that were also in the running were Vitol and BB Energy, the sources said. The Fujairah plant processes mainly African sweet, or low-sulphur, crude oil, producing about 5 million tonnes per year of very low-sulphur fuel oil (VLSFO), according to Uniper and Refinitiv data. Montfort has a bunker supplier licence in Fujairah under the entity of Montfort Trading FZE.

☆ Wintershall Dea to leave Russia, causing net loss at BASF
▼ + stars: | 2023-01-17 | by ( ) www.reuters.com time to read: +1 min

"Wintershall Dea will end its Russian activities. Continuing to operate in Russia is not tenable," said Mario Mehren, CEO of Wintershall Dea, which is a 72.7%-27.3% joint venture between BASF and Russian billionaire Mikhail Fridman's investment firm LetterOne. BASF said the impairment would cause a 1.4 billion euros net loss in 2022 according to preliminary results. Wintershall Dea intends to fully exit Russia, BASF said, citing "extensive loss of actual influence and economic expropriation" in the country. Earnings before interest and tax were 6.5 billion euros, slightly below analysts' estimates of 6.8 billion euros.

"We have the ambition to become a profitable company in 2023," Laege said, adding the group had also secured long-term regasification capacity at the planned Hanseatic Energy Hub terminal in Stade, Germany. Laege said that Sefe, formerly called Gazprom Germania, was successful in sourcing LNG mainly from the United States, both short-term deals and for longer periods. The company, whose name is short for Securing Energy for Europe, had already unloaded a first cargo at Dunkirk, he said. However, next winter and beyond could be tight again if cold periods and a fast recovery of Asian LNG demand coincide. Reporting by Vera Eckert, Christoph Steitz, Tom Kaeckenhoff, editing by Kirsti Knolle and Jason NeelyOur Standards: The Thomson Reuters Trust Principles.

☆ Around 40% of German companies expect output decline in 2023 - IW institute
▼ + stars: | 2023-01-09 | by ( ) www.reuters.com time to read: +1 min

BERLIN, Jan 9 (Reuters) - Four out of ten German companies expect business to shrink in 2023, a survey by the German Economic Institute (IW) showed on Monday, blaming high energy costs, supply chain issues and the continuing war in Ukraine. However, they remain at a high level and production disruptions cannot be ruled out," the IW said in the survey seen by Reuters. The survey of around 2,500 companies showed that around a third of companies expect output to stagnate and the remaining quarter predict business will grow. The outlook is particularly bleak in the German construction sector, where more than half of companies surveyed by IW expect a decline in production and just 15% anticipate more business. The picture is barely brighter in industry, where 39% of surveyed companies forecast a decline, driven by a cautious assessment in the consumer and basic industries.

☆ German won't rule out deliveries of Leopard tanks to Ukraine, economy minister says
▼ + stars: | 2023-01-08 | by ( ) www.reuters.com time to read: 1 min

FRANKFURT, Jan 8 (Reuters) - Germany cannot rule out the delivery of Leopard tanks, heavier fighting vehicles than the Marders, to support Ukrainian militry forces in the future, the country's economy minister told German broadcaster ARD. "Of course it can't be ruled out," Robert Habeck said. His comments come two days after Germany said it wants to deliver around 40 Marder infantry fighting vehicles to Ukraine before the end of March, a decision Habeck said was good and long overdue. Reporting by Christoph Steitz Editing by Frances KerryOur Standards: The Thomson Reuters Trust Principles.

☆ Germany's new China strategy 'guided by ideology', ambassador says
▼ + stars: | 2023-01-08 | by ( ) www.reuters.com time to read: +2 min

FRANKFURT, Jan 8 (Reuters) - Plans for a tougher China strategy by Germany are "guided by ideology" and reflect a Cold War mentality that could put cooperation between the world's second- and fourth-largest economies at risk, China's ambassador to Berlin was quoted saying. "The paper gives the impression that it is guided primarily by ideology. It is not based on the common interests of Germany and China." Germany is working on a new strategy taking a more sober look at its relations with China and aiming to reduce its dependence on Asia's economic superpower. To me, this smells suspiciously of a Cold War mentality," Ken said.

[1/3] TV cameras are set up in front of a building where German police have taken a 32-year-old Iranian citizen into custody, suspected of having procured deadly poisons cyanide and ricin to commit an "Islamist-motivated" attack, in Castrop-Rauxel, Germany, January 8, 2023. REUTERS/Stephane NitschkeCASTROP-RAUXEL, Germany, Jan 8 (Reuters) - German police have taken into custody a 32-year-old Iranian citizen suspected of having procured deadly poisons cyanide and ricin to commit an "Islamist-motivated" attack, authorities in western Germany said on Sunday. Police said the Iranian was suspected of having planned a "serious act of violence endangering the state" by allegedly procuring cyanide and ricin to commit an Islamist-motivated attack. Islamist-motivated lone perpetrators are another considerable danger," German Interior Minister Nancy Faeser said following news of the investigation. "Our security authorities therefore expect preparations for an attack at any time," she said, adding that since 2000 German security authorities had prevented 21 Islamist attacks in Germany.

Russia's Gazprom (GAZP.MM) was once Uniper's biggest supplier of gas, but a big drop in deliveries after Moscow's invasion of Ukraine forced the German gas importer to buy gas elsewhere at much higher prices to honour its contracts. Uniper's investors voted in favour of the two main measures at Monday's meeting, an 8 billion euro capital injection by the German state and allowing a further injection of up to 25 billion euros by Berlin. Maubach said Uniper currently had access to around 2.5 billion euros of funds. As part of the bailout, the German government will end up owning just below 99% of Uniper, Germany's largest gas trader, following two share issues. The loss of Russian gas, Moscow's retaliation for Western sanctions over its invasion of Ukraine, triggered a 40 billion euro net loss for the importer, which provides around a third of Germany's gas, the largest loss in German corporate history.

☆ Uniper boss tells investors to back German bailout or risk all
▼ + stars: | 2022-12-19 | by ( ) www.reuters.com time to read: +2 min

FRANKFURT/BERLIN, Dec 19 (Reuters) - Germany's Uniper (UN01.DE) called on shareholders to approve a bailout and nationalisation that will cost the government more than 50 billion euros ($53 billion), warning that it will otherwise have to consider filing for insolvency. Gazprom (GAZP.MM) was once its biggest supplier, but a big drop in deliveries after Russia's invasion of Ukraine forced Uniper to buy gas elsewhere at much higher prices to meet its contracts. "In the Management Board's view, a possible insolvency could lead to a complete loss for shareholders." If the bailout is approved, the German government will end up owning just below 99% of Uniper, Germany's largest gas trader, following two share issues. Germany's Finance Ministry will be responsible for the stake, Uniper said on Monday.

Uniper (UN01.DE) has already booked billions of euros of losses on derivatives, exacerbating a crisis as it rushed to plug the gap left after Russia turned off the taps. Like other energy firms, Uniper uses derivatives, such as securing an option to sell gas at a set price in the future, to guard against energy price swings. "In total, we have derivative positions of about 216 billion euros as of September 30 2022," a spokesperson for Uniper said, adding that the riskier part of this was small. According to its accounts, Uniper held around 198 billion euros of receivables from derivative instruments as assets. It is also more than the 131 billion euros Germany's RWE (RWEG.DE) had at the end of June, public data shows.

☆ EU clears Germany's plan to take over gas giant Uniper
▼ + stars: | 2022-12-16 | by ( ) www.reuters.com time to read: +1 min

Companies Uniper SE FollowGazprom PAO FollowBRUSSELS/FRANKFURT, Dec 16 (Reuters) - The European Commission has approved the acquisition of Uniper SE (UN01.DE) by the German government, it said on Friday, paving the way for nationalising the gas trading firm which nearly collapsed after Russia stopped supplying gas. The acquisition was approved under the EU merger regulation after the Commission concluded it would raise no competition concerns. "The transaction was prompted by the ongoing European energy crisis, in particular the cessation of Russian gas deliveries and the sharp rise in gas prices, which resulted in Uniper, Germany's largest importer of Russian gas, requiring significant capital injections to prevent its insolvency," the Commission said. Gazprom (GAZP.MM) used to be Uniper's biggest gas supplier, but deliveries were reduced in the summer and fully halted at the end of August, forcing Uniper to buy gas elsewhere at much higher prices to meet existing contracts. "This is an important step in the proceedings," a spokesperson for Germany's Economy Ministry, which was key in negotiating the nationalisation, said.

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