Publisher: Nordex SE
Nordex Group plans to cease rotor blade production at Rostock site in Germany
• 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
© Nordex SEHamburg (renewablepress) - Today, the Nordex Group has informed staff at the Rostock GVZ rotor blade site in Germany about considering to cease manufacture of rotor blades at that site at the end of June 2022. A reconciliation of interests and a severance scheme are to be negotiated with the works council in the short term in order to make the planned reduction in force socially acceptable. About 600 of a total of 8, 600 employees worldwide would be affected at the GVZ. In Germany, the Nordex Group employs about 3,150 people.
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 worldwide 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.”
Apart from the rotor blade production, Rostock is also home to a nacelle, hub and drive trains production site (DMR) as well as to Engineering and Service organization staff. These employees are not affected.
The Nordex Group - a profile
The Group has installed more than 35 GW of wind energy capacity in over 40 markets and in 2020 generated revenues of EUR 4.6 billion. The company currently employs a workforce of approx. 8,500. The joint manufacturing capacity includes factories in Germany, Spain, Brazil, the United States, India and Mexico. The product portfolio is focused on onshore turbines in the 4 to 6.X MW class, which are tailor-made for the market requirements of countries with limited space and regions with limited grid capacity.
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© Nordex SE
Hamburg, 28 February 2022
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About Nordex SE
The development, manufacture, project management and servicing of wind turbines in the onshore segment has been the core competence and passion of the Nordex Group and its more than 7,900 employees worldwide since 1985. As one of the world's largest wind turbine manufacturers, the Nordex Group offers high-yield, cost-efficient wind turbines under the Acciona Windpower and Nordex brands that enable long-term and economical power generation from wind energy in all geographical and climatic conditions.
The focus is on turbines in the 3 to 5MW+ class, and the Group’s comprehensive product portfolio offers individual solutions for both markets with limited space and regions with limited grid capacities. With more than 29 GW of installed capacity worldwide, Nordex Group systems deliver sustainable energy throughout more than 80 per cent of the world’s energy market (excluding China).
Nordex SE is listed on the TecDAX of the Frankfurt Stock Exchange. The management holding company is headquartered in Rostock, while the executive board and administrative offices are based in Hamburg. At production facilities in Germany, Spain, Brazil, the US, and India, the Nordex Group produces its own nacelles, rotor blades and concrete towers. The Group also maintains offices and branches in more than 25 countries.
Press contact at Nordex SE
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