A Blow to the Arkansas Sustainasphere: Nordex USA to Cease Arkansas Production
The Arkansas Advanced Energy Association (“AAEA”), reported this morning that Nordex USA will soon be ceasing production at its’ manufacturing facility in Jonesboro, Arkansas:
AAEA learned this morning that Nordex USA will cease nacelle production at its Jonesboro, Arkansas facility after it completes the orders in its current pipeline. The decision was driven by the wind industry's global overcapacity and the continued uncertainty and instability of the US market. The decision will not impact the current year's business performance, as exceptional expenses were already accounted for in 2012 as previously reported. The training academy, the central parts storage and the repair facility in Jonesboro will remain in operation to support Service and Operations in the Americas. Around 40 employees will be affected with layoffs beginning in October 2013. Ralf Sigrist, President & CEO of Nordex USA, Inc. commented, "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." In the future, nacelles for the North and Latin American markets will be supplied from Nordex' factory in Rostock, Germany, using the global supply chain and logistics support based there.
Special thanks to the AAEA folks for sharing this developing news.