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Nordex May Build Wind Turbine Parts in Turkey on Demand Growth

April 11, 2013

Nordex SE (NDX1), a German turbine maker, may build a rotor-blade manufacturing plant in Turkey as it seeks to gain from growth in power demand in the nation.

The company will decide by next month whether to invest in the facility, Ibrahim Ozarslan, managing director of its Turkish unit Nordex Enerji AS, said today in an interview in Ankara. The plant would produce the first blades next year and allow Hamburg-based Nordex access to markets such as Turkmenistan, Azerbaijan and Georgia, he said.

Turkey, which depends on fossil-fuel imports for about 90 percent of its energy needs, has lured international investors including General Electric Co. (GE:US) and Siemens AG (SIE) to its power industry as the regulator forecasts annual demand growth of 6.3 percent in the next two decades. The nation offers a feed-in tariff paying premium prices to clean energy, supplemented by an additional payment for equipment produced domestically.

Nordex is in talks with the Turkish energy ministry over potential local incentives for any turbine components produced, Ozarslan said. The Turkish market has “huge potential”, he said. The manufacturer also made progress including choosing buildings, discussions with potential partners and preparing contracts, he said.

To contact the reporter on this story: Sally Bakewell in London at sbakewell1@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net


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