DGAP-News: Nordex SE
/ Key word(s): Strategic Company Decision
- Strong competition is necessitating optimization of Nordex' global production and sourcing processes
- Shift in demand for larger blades, which are not manufactured at Rostock
- Reconciliation of interests and social compensation plan to make reduction in force socially acceptable for staff
- Nordex Group's "DMR" nacelle assembly plant, Engineering and Service organization in Rostock not affected
The increasingly challenging market environment and strong competition together with a shift in demand require Nordex Group's global production and sourcing processes to be adapted.
Since the introduction of the auction system in most of the energy markets, the industry has been globally characterized by increasing price competition. Those power producers who submit the lowest bids are awarded the contract and then pass on the price pressure to the turbine manufacturers. They, in turn, have to reduce their production costs to remain competitive. The cost of energy production from wind have halved in the last five years and this development has had a negative effect on the manufacturers' profitability.
Against this backdrop, blade production at Rostock is, despite the cost-saving measures already implemented, not competitive within the Nordex Group's global production network and world-wide project business. Additionally, the Rostock plant manufactures blades for turbines with a 149-meter maximum diameter. The global trend has been developing towards more efficient turbines with ever longer rotor blades. Consequently, demand for the blades which can be manufactured at Rostock will continue to decline.
José Luis Blanco, Nordex Group CEO: "The wind industry operates in a highly competitive, global market that is mainly cost-driven. Against this background, we must optimize our global production and sourcing processes in order to ensure profitable production and to secure the Nordex Group's competitiveness. As a German and European -based company, we particularly regret that we do not see an alternative to this painful measure. We need an industrial policy that aims for a sustainable and comprehensive way to decarbonize and foster supply chain independency."
The Nordex Group - a profile
28.02.2022 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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|EQS News ID:||1290305|
|End of News||DGAP News Service|