Nordex preparing for continued expansion
Extensions to Rostock facility to annual output of 2,000 MW / investment volume of EUR 85 million
Hamburg,- The Nordex Group (ISIN: DE000A0D6554) grew by an average of 65 percent in 2005 and 2006 and thus twice as quickly as the market as a whole. “Of the industry top ten, only two other companies aside from Nordex achieved this,” says Thomas Richterich, CEO of Nordex AG. The Management Board plans to remain on this growth path in the medium term and to double the Group’s sales (2006: EUR 514 million) every two years or so.
For this reason, it will be investing in extensions to its production capacity in Germany as of 2007. Total investments in its Rostock plant will come to EUR 85 million by 2009. In three years’ time, turbine assembly capacity will have reached 2,000 megawatts (MW) per year and rotor blade capacity around 1,000 MW. Last year, production output at Rostock stood at around 600 MW. In addition, Nordex has further production facilities in China, which, after being established last year, are to be extended to an annual capacity of around 400 MW following the completion of the ramp-up phase.
Says Richterich: “Our order intake has improved steadily over the last two years, pushing us to the edge of available capacity. These investments mark a key step in efforts to continue on our growth course.” At the end of 2006, firm and conditional orders were valued at around EUR 1.2 billion. This was joined in the first quarter of the current year by further orders worth EUR 361 million. Nordex projects full-year sales of at least EUR 750 million in 2007.
The greater capacity utilization will also help to improve profitability substantially. Together with wider margin contributions from new projects, this will ensure that the EBIT margin doubles to 6 percent this year, with a margin of 10 percent being aimed for in the medium term. Says Richterich: “This presupposes upbeat market conditions.” On the basis of current forecasts, however, this is likely to be the case. Thus, analysts at the renowned BTM Consult research institute have raised their forecasts for average annual growth in the wind power industry to 17.4 percent for the period until 2011. At the same time, they have identified the onshore multi-megawatt class as a key growth segment, an area in which Nordex has an above-average presence.
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