Berlin takes closer look at sale of MAN gas turbine division to China

Munich (Reuters) - The German government is taking a closer look at the sale of Volkswagen subsidiary MAN Energy Solutions' gas turbine division to a Chinese company, the German company said on Monday.

A MAN Energy Solutions spokesperson said the economy ministry's in-depth review of the sale to Chinese state-owned CSIC Longjiang GH Gas Turbine Co (GHGT) had been expected.

If the ministry concludes the sale could endanger national security, the federal government could still ban the sale.

GHGT belongs to the China State Shipbuilding Corporation (CSSC), which dominates the Chinese shipbuilding industry.

According to German daily Handelsblatt, which first reported the review, GHGT builds, among other things, warships for the Chinese navy. Gas turbines are central to China's desire to modernize its fleet as they are significantly more efficient than diesel engines.

MAN Energy Solutions had announced the sale of its gas turbine division to China in June, for an undisclosed price.

The Augsburg-based company, with its 14,000 employees, originally belonged to MAN but was transferred directly to Volkswagen in the course of the merger of Scania and MAN to form the truck holding company Traton. It is to remain part of the Wolfsburg group until at least 2026.

(Reporting by Christoph Steitz and Alexander Huebner; Writing by Miranda Murray; Editing by Rachel More)