Nordex China focusing on expansion

Shanghai, November 1, 2007. Nordex, a global technological leader in multi-megawatt wind power systems plans to invest another EUR 50 million in China to almost quadruple annual production capacity by 2011, CEO Thoms Richterich told a news conference today.

Annual production capacity of Nordex China will grow from a current 225 MW to 800 MW. This will help the German company expand its share of the Chinese market for wind turbines to 15% by 2011, up from 3% at the end of 2006. Over the same period, Nordex will expand its Chinese workforce from 300 to 1,600.

Nordex plans to turn China into a base for expansion around the region, Mr. Richterich told the news conference at Wind Power Shanghai 2007. The company was the first to set up local wind turbine production in 1998.

Mr. Richterich said: “Competition is keen in China but we expect to be able to achieve a market share of 15% by 2011. At the same time, Nordex China is to act as our bridgehead for our forays throughout all of Asia.”

Nordex currently produces 100% of its rotor blades for China in house and develops other core components like gearboxes with Chinese partners, who will become part suppliers. Mr. Richterich described this arrangement as a win-win: Nordex is able to lower its costs, while the local partners are able to tap into German expertise. Through this technology transfer, Nordex is strengthening the Chinese wind power industry.

Nordex targets Chinese utilities seeking suppliers for large-scale wind farms. Its high-output 1.5 MW systems are ideally placed to meet the demand. This turbine is installed in around 500 locations around the world.

Mr. Richterich said: “Technical reliability is becoming an increasing important issue in China as the demand for electricity is enormous.” He added: “Needless to say, China is seeking to build up local production activities and import expertise. This is why our expansion plans in China are so important.”

Mr. Richterich also announced two senior management appointments in China to step up the business. Wolfgang Jussen has been appointed as Chief Operating Officer and Kenneth Johst as Chief Sales Officer in Nordex China. Both executives have long industry experience in China. Mr. Johst oversaw sales and marketing at one of Nordex´s leading competitors in China for many years. Mr. Jussen has held management positions in China since 1998, working for companies that build conventional power stations.

In explaining the management changes, Mr. Richterich said: “As China is the second biggest growth market for wind power of the world, we are reinforcing our local structure.”

Demand for clean electricity production has risen enormously across Asia. Wind power forms a crucial component in these efforts. Thus, a megawatt/hour electricity generated using wind avoids roughly one ton of greenhouse gas emission when electricity is produced from coal.