European Turbine Production Consolidation

Wind turbine manufacturer Nordex AG will be further concentrating its production of wind turbines in Rostock. Manufacture at the second European production facility in Give, Denmark, is to be gradually scaled down over the coming three months.

Hamburg, Germany – March 5, 2003 [SolarAccess.com] A total of some 40 jobs in assembly, stores and general administration will be affected by this move. In taking this step Nordex is continuing the process of centralization of its production processes. In recent years switch cabinet and blade production have also been moved to Rostock or set up there. “By concentrating on one production location in Europe we are able to obtain considerable synergistic benefits in the areas of purchase, storage and logistics, as well as increasing capacity utilization”, said Thomas Richterich, Nordex AG CFO. In the past Nordex mainly produced machines for Scandinavian projects in Give. However, the low level of demand from Denmark resulted in a reduction in capacity utilization in production. In the last financial year the group in Denmark contributed no more than approx. 2 percent to revenues. The company has reserved the option of resuming production in Give for regional projects at a later stage. In Rostock the group is able to produce some 600 megawatts a year. Said Richterich: “Even if demand grows faster than expected, we shall easily be able to deliver by using additional staff.” In 2002 Nordex installed wind turbines with a total capacity of approximately 505 megawatts. Nordex’s other activities in Give will remain unaffected by this decision. Distribution, project management and service are based at this location. A repair workshop will therefore be retained for regional service work. And the local production in the Chinese joint venture will not be affected by this amalgamation either.

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