IN DEPTH: Nordex sees 2014 growth

Jürgen Zeschky

Jürgen Zeschky

German wind turbine manufacturer Nordex expects its revenue and order intake to rise further this year.

“I am optimistic about the outlook for our future growth. Thus, we expect an order intake of up to €1.6bn ($2.2bn) in 2014,” Nordex chief executive Jürgen Zeschky said.

“We have managed to double our market share in many countries and in Europe in general.”

Nordex's guidance for an order intake of €1.4bn to €1.6bn comes after its order intake rose  by 19% to €1.5bn last year. The company said it has already received orders for more than 300MW of its Generation Delta machine, mostly from Nordic countries.

The manufacturer also said it expects revenues to come in at €1.4bn to €1.5bn this year, after the company in 2013 managed to boost its revenue by 33% to €1.43bn. The expected increase in sales is almost fully covered by the company’s order backlog, Nordex said.

Nordex last year entered the select group of the world’s ten largest wind turbine manufacturers, reaching a global market share of 3.7% in 2013, up from 2.1% in 2012, it said. In its German home market, Nordex doubled its market share to 8% from 4% a year earlier.

Thanks to strong growth in the Nordic countries, it boosted its share in the EMEA region to 10.5% in 2013, from 5.2% in 2012. In countries such as Norway or Turkey, Nordex managed to reach a market share of 52% and 25% respectively.

Despite its recent success and a return to profit in 2013, Zeschky said Nordex would look at opportunities to cooperate with other companies, if they arise. However, the CEO was noncommittal when asked if a larger company could emerge as interested in buying Nordex at some point.

“In the wind industry, everyone talks with everyone all the time,” he said during a conference call.

“There are no specific [matters] where something concrete can be imagined. But there are always talks again, as there are many things that can be consolidated.”

Despite the company’s optimistic outlook for this year, Zeschky acknowledged that a reform of Germany’s Renewable Energies Act (EEG) as currently being contemplated by the government contains cuts to feed-in tariffs (FITs) that are “unpleasant” for the company.

“Of course, we would wish for a higher FIT,” Zeschky said. “But in a European comparison, it is still a FIT with which we can live.”

If onshore FITs were cut in Germany according to the latest draft by energy minister Sigmar Gabriel for a reform of the EEG, they would average €0.089, down from about €0.99 now, Nordex reckons.

That would be lower than in the Netherlands or the expected post-2016 support level in the UK, but it would still be higher than support granted in Italy, Finland or France.

Zeschky also said that a planned cap of 2.5GW for new onshore wind installation capacity in Germany “hurts,” adding that as he understands the matter, that figure won’t include turbines installed in the wake of repowering projects.

Germany’s windy northern states are trying to lobby the federal government to exclude repowering from the 2.5GW cap.

“But what will be decided politically in the end, I can’t tell (for sure),” Zeschky cautioned.

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