Nordex SE (ETR:NDX1) will transfer the operation of its rotor blade plant in Matamoros, Mexico to US wind blades specialist TPI Composites Inc (NASDAQ:TPIC) for three years under an innovative collaboration deal.
The German wind turbine maker’s CEO, Jose Luis Blanco, said Friday that the partnership would secure fast deliveries and high reliability, while allowing the company to focus on “other worldwide strategic ramp-up activities”.
The facility in Mexico produces two types of rotor blades and mainly serves the American markets. Its efficiency and output will be increased with the help of TPI and it will exclusively supply Nordex.
The transfer took effect in July and the return of the facility to the Nordex Group is planned to take place in 2024, unless an extension option present in the agreement is exercised by the companies. TPI is taking over the roughly 1,500 employees at the facility in Matamoros.
Nordex has sourced rotor blades from TPI in Turkey for a number of years already, and it recently started buying blades in India. Through 2020, TPI also supplied Nordex with rotor blades in China.