The Nordex Group has reported at the Rostock GVZ rotor blade site in Germany that it plans to stop production of rotor blades at this site by the end of June 2022.
A reconciliation of interest and severance payments will be negotiated in the short term with the works council to make the planned relief socially acceptable. Some six hundred out of a total of eight thousand six hundred international workers would be affected in the GVZ. .
In Germany, the Nordex Group employs 3,150 people.
The challenging market environment and strong competition, as well as demand conversion, require an adaptation of Nordex Group’s global origin and production processes.
Since the advent of the auction formula in maximum-power markets, the industry has sometimes been characterized by increasing value competition. Electric power manufacturers that submit the lowest bids get the contract and then pass the pressure on value to turbine manufacturers. They, in turn, will have to lower their production prices to remain competitive. The wind generation load has halved in the last five years; this progression has had a negative effect on the profitability of manufacturers.
In this context, the production of shovels in Rostock, despite the cost reduction measures already implemented, is not competitive within the Nordex Group’s global production network and allocation activities worldwide. In addition, the Rostock plant manufactures turbine blades with a maximum diameter of 149 meters. The global trend has evolved towards more efficient turbines with even longer rotor blades. As a result, the demand for shovels that can be manufactured in Rostock will continue to decline.
“The wind industry operates in a highly competitive global market, basically focused on costs,” says José Luis Blanco, CEO of Nordex Group. “In this context, we want to optimize our global production and source processes to ensure successful production and safe competitiveness of the Nordex Group. As a German and European company, we know that we do not see an option to this painful measure. We want a trade policy that aims at a sustainable and comprehensive way of decarbonising and selling the independence of the chain of origin
In addition to the production of rotor blades, Rostock also hosts a production of nacelles, hubs and powertrains (DMR), as well as engineering personnel and service organization. These workers are not worried.