BERLIN, Oct 27 Reuters German Chancellor Olaf Scholz on Friday called Siemens Energy very important and the economy ministry said it was conducting intensive talks, statements that came as the company39;s shares halted their plunge on news that it was seeking state guarantees.

The power engineering company has suffered big setbacks at its wind unit, the world39;s largest, and said on Thursday it was in talks about aid, spooking investors.

Siemens Energy is a very important company. This is without question, Scholz said, describing the talks as good and declining to elaborate.

The economy ministry described the talks as intensive, but would not elaborate on details or a timeline.

Quality problems emerged this year at the company39;s wind unit Siemens Gamesa centred on rotor blades and gears in newer onshore wind turbines, drawing the ire of top shareholder and former parent Siemens AG. Siemens Gamesa has booked billions in related losses.

Siemens Energy Chief Executive Christian Bruch has been under pressure to present a convincing turnaround plan for Siemens Gamesa after detailing the farreaching problems just a few months after assuming full ownership of the division.

Siemens Energy has considered shutting down some Siemens Gamesa factories and sales offices as part of a review aimed at trimming losses.

The German government is aware that Siemens Energy is a transformationally relevant company for Germany as a business location, another government spokesperson…