Enercon is to restructure its German manufacturing in a move that will see it part ways with several production partners and suppliers in order to remain competitive internationally.
The company said that as part of a new focus on international markets, centres of excellence for nacelle and generator construction are to be developed at the Aurich and Magdeburg sites.
Restructuring will take place in close cooperation with Enercon’s existing production partners, it added.
“The aim is to integrate some of the responsible external companies into Enercon during the process of restructuring,” the company said.
Enercon chief operating officer Jost Backhaus said: “We want to integrate production into the core company Enercon and manage it as an operation of its own in future.
“We are seeking talks with the shareholders on this matter. This is a complex project and will take some time, but we are confident that it will be a success.
“The project is driven by our objective to keep our expertise in the production of our most important key components for Enercon WECs and put the production sites in Germany in a good position for the future.”
Enercon said a ‘mechatronics centre of excellence’ is to be developed for this purpose at the Aurich site in Lower Saxony in the next months.
It will pool all of the manufacturing processes and specialist knowledge required for producing machine houses, hubs and electrical components.
The centre will be the primary plant for these main components in Enercon’s restructured global supply chain, the company said.
A ‘generator centre of excellence’ is also planned for the Magdeburg-Rothensee site in Saxony-Anhalt.
It will concentrate the specialist knowledge and manufacturing processes required to manufacture Enercon permanent magnet and separately excited generators.
Backhaus said: “From a strategic point of view, keeping our manufacturing expertise in the long term and ensuring close contact with research and development are thus core concerns for our company as it adopts its new focus.”
Enercon said it also aims to strengthen its Aurich and Magdeburg production sites for international business with this step.
The production processes for the main components and the associated storage and movement of materials are to be optimised at both sites, and synergies capitalised on.
“The new setup will mean both sites are competitive on a global scale as well,” said Backhaus.
Enercon said that following the collapse of the German onshore market, it began an extensive restructuring programme that involved focussing on promising international business.
The plan includes reorganising supply chains, which are undergoing a necessary cost reduction programme with a plan to orient them toward international business.
Enercon said that as well as having components produced in target markets to satisfy ‘local content’ requirements, it is also awarding more production orders to suppliers in ‘best cost’ countries.
Backhaus said: “We have to face up to the costing pressure and the competition and change our focus. That is the only way we can survive in the highly competitive international market.”
He added that the reorganisation will involve consolidation.
“Major changes will have to be made in individual companies. They will have to actively find solutions to deal with the new situation. Due to the challenging framework conditions, we can in particular no longer afford to have redundant structures in Germany,” he said.
“Setting up the centres of excellence means we will be able to keep jobs and expertise and reorganise the Aurich and Magdeburg sites for the future.”