Shares in Siemens Energy fell nearly 40% on Thursday, wiping three billion euros off its market value, after the company said it had sought a bailout from the German government following a series of serious problems at its energy division. .

A spokesman for Germany’s economy ministry also confirmed the talks, which he described as “close and reliable”. The news sent shares of Siemens Energy tumbling 39% to an all-time low around 10:55 GMT, a 3.3 billion euro drop in market value since Wednesday night.

Siemens Energy is struggling after problems with wind turbines produced by its Siemens Gamesa unit, problems that drew criticism from its main shareholder and former owner, the Siemens AG group.

Siemens Gamesa has already recorded billions of euros in losses, and because of these losses, Siemens Energy fears that it will not be able to get guarantees from the banks, so it has contacted the Berlin government and the Siemens Group to obtain bank guarantees. .

What response would the German government have to Siemens Energy’s request?

According to the weekly WirtschaftsWoche, the company would be interested in receiving guarantees for 15 billion euros. Government sources cited by Reuters declined to comment on the size of a possible aid package, but said Berlin was willing to help Siemens Energy, but shareholders must also contribute.

The Siemens Group remains the main investor in Siemens Energy, where it also holds a 25.1% stake.

The German government wants to support the wind industry as it transitions to a low-carbon economy, and the European Commission has just published an action plan aimed at keeping Europe’s world-leading wind turbine industry.

Siemens Gamesa is the world’s largest manufacturer of offshore wind turbines.

The company has 79 facilities worldwide, including service centers and research and development centers, as well as 15 factories that manufacture components for wind turbines.