The German wind power specialist Nordex has announced plans to shut down its production facility in Jonesboro, Arkansas. Overcapacity and cuts in government tax benefits have rendered the US operation unprofitable.
Weak demand in the US market and uncertainty about the commercial conditions for wind power in the country has forced Nordex to cease production at its Jonesboro facility, the German wind power firm announced in a statement June 28.
Existing orders would still be processed over the course of the next few months, Nordex announced, adding that the plant closure would make about 40 production workers redundant, though employees at the distribution, services and project development units would retain their jobs.
Describing the announcement as a sad day for Nordex USA, division chief Ralf Sigrist said that the decision had been unavoidable because of low capacity utilization in the factory.
In addition, uncertainty about whether the US administration would continue a policy of tax breaks for wind power had led to an incalculable situation, he said.
Nordex inaugurated the factory in 2010. US production, according to the firm, would now be repatriated to a plant in Rostock, Germany. According to a major restructuring program announced earlier this month, Nordex planned to refocus activities on Germany, Scandinavia, Turkey and South Africa. Production would also be ceased in China because of low-cost competition from Asian manufacturers.
uhe/mkg (dpa, Reuters)