Enercon to restructure German manufacturing footprint

Enercon has announced plans to restructure its production footprint in Germany by creating two nacelle and generator manufacturing hubs.

It aims to set up ‘centres of excellence’ for nacelle manufacturing in Aurich and generator production in Magdeburg, the embattled turbine manufacturer explained.

This will involve pooling all its manufacturing processes and specialist knowledge for these components in two locations.

The aim is to integrate its previously external suppliers into Enercon, it added.

The German manufacturer explained that by doing this it aims to secure the two sites and retain expertise as it looks to target international markets and wait for the German onshore wind market to recover.

It had cut back its footprint in Germany and shifted production abroad, but now appears more optimistic on its domestic market.

Chief operating officer Jost Backhaus added: “We want to remain a technology leader in the future. 

“In order to ensure this, we believe it is crucial that we have direct access to the production processes for the most important main components. We want to establish state-of-the-art manufacturing technology in the centres of excellence, complete with automation and the latest processes and standards.” 

Enercon will set up a mechatronics ‘centre of excellence’ at its existing site in Aurich, Lower Saxony “in the next few months”. There, it will pool all manufacturing processes and specialist knowledge for producing machine houses, hubs and electrical components, it stated.

The manufacturer will set up a similar facility for its permanent magnet and separately excited generators at site in Magdeburg, Saxony-Anhalt.

Enercon had launched a ‘transformation programme’ to return the company to profitability in November 2019, as the German onshore wind market – the focus of its activities – ground to a halt, and the company headed towards a second loss-making year.

It axed around 3,000 jobs and stopped domestic manufacturing to shift production to cheaper markets as part of cost-cutting measures. But the manufacturer has recently secured €1.15 billion in financing until the end of 2023, which management hopes will normalise relations with suppliers that may have feared defaults on payments.

CEO Hans-Dieter Kettwig added: “Onshore wind energy will only bounce back in this country if this support continues in the future.

“That is why we have always made it clear that we stand by Germany as a location and will try to keep added value in this country to the greatest extent possible during our reorientation.”