Nordex to cut 400–500 jobs in Europe

Sept 5 (Renewables Now) - German wind turbine maker Nordex (ETR:NDX1) today said it plans to axe 400 to 500 jobs in Europe by the end of the year.

The company currently has some 5,200 employees around the world, of whom approximately 48 % are based in Germany. The cuts will primarily affect sites in Germany and, to a lesser extent, other European branches.

Nordex has adopted a cost-cutting programme to "respond to the continuing decline in demand and the sharp change in market conditions in its core market Germany as well as in other European countries." The company wants to achieve savings of EUR 45 million (USD 53.4m) in 2018. Personnel costs will be cut by EUR 24 million while cost of materials and other operating expenses will be reduced by EUR 21 million.

“The global wind power market will expand again stronger in the medium term. At the same time, however, it faces fundamental system changes, heavy price pressure and a shift in growth away from the established markets in favour of the emerging markets. Business in the European core market is currently flat to weaker and thus posing challenges for us,” said José Luis Blanco, CEO of Nordex SE.

Last month, Nordex reported a 55.7% year-on-year drop in first-half consolidated net profit

(EUR 1 = USD 1.186)

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