Citing weakened demand and policy uncertainty, Nordex SE has announced it will end U.S. production after the company completes the orders in its current pipeline.
Nordex will close its nacelle production facility in Jonesboro, Ark., and plans to continue supplying the North and Latin American markets from its factory in Rockstock, Germany. According to the company, about 40 U.S. employees will be laid off beginning in October.
"This was an extremely difficult decision for Nordex," says JÃ¼rgen Zeschky, CEO of Nordex SE. "We are reacting to the weakened demand from the U.S. market, brought on by the unpredictable extensions of the production tax credit (PTC), and the resulting low utilization rate of our U.S. assembly plant."
Zeschky says Nordex will remain committed to the U.S. and Latin American markets, and the company's service activities for existing U.S. wind farms will not be affected by the plant closure. The training academy, the central parts storage and the repair facility in Jonesboro will stay in operation to support service and operations in the Americas.
Ralf Sigrist, president and CEO of Nordex USA Inc., comments, "This is a sad day for all of us at Nordex USA. We will lose valued colleagues, who have done their very best for us, but the decision was inevitable considering the underutilization of our plant."