March 1 (Renewables Now) – Wind turbine maker Nordex SE (ETR:NDX1) plans to halt production of rotor blades at its plant in Rostock, northern Germany, amid production costs high and a change in global demand.
The closure is necessary because wind turbine manufacturers are under increasing pressure to reduce production costs in order to remain competitive and the Rostock plant is still not competitive despite all the cost cutting measures that have been taken, said Nordex said on Monday.
Another reason for the plan is the shift in global demand towards more powerful turbines with longer rotor blades, which is expected to lead to lower orders at the northern German site as it lacks the capacity. to produce turbines with a diameter greater than 149 meters. .
The company will discuss with the works council a departure plan for the 600 employees who will be affected by the plan.
Nordex said the nacelle, hub and running gear (DMR) production site and its engineering and service organization, also based in Rostock, will continue to operate.
“The wind industry operates in a highly competitive, cost-driven global market. In this context, we need to optimize our global production and supply processes in order to ensure profitable production and secure the competitiveness of the Nordex Group. As a company based in Germany and Europe, we particularly regret that we do not see an alternative to this painful measure,” said chief executive Jose Luis Blanco.
The announcement follows a report by German newspaper Ostsee Zeitung last week that suggested Nordex was considering moving some of its production from its Rostock site to Asia in a bid to reduce rising costs. The considerations come against the backdrop of losses the wind turbine maker has suffered over the past two years as rising raw material and logistics costs have taken their toll.
The company posted a net loss of nearly 104 million euros ($116.4 million) for the first nine months of 2021, although revenue was up nearly 25%.
(1 EUR = 1,120 USD)
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