WINDPOWERUPDATE

Germany 5 2.50

Austria 5 2.70

Switzerland CHF 4.90

USA $ 3.00

SERVICE ENVIRONMENT USAQuality checks for Will the ice Why Jonesboro?

maintenance activities break more quickly?

PAGE 10 PAGE 12 PAGE 18

No. 28 ı Spring 2009 NEWSLETTER FROM www.nordex-online.com

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SWEDEN

CONTRACTS SIGNED WITH DONG, VATTENFALLAND E.ON

15

20INTERVIEW WITH

CARSTEN PEDERSEN, COO SALES AND MARKETING,

AND JENS OLSEN, HEAD OF NORDEX CHINA

“YOU WILL GET WHAT YOUHAVE PAID FOR”

WINDPOWERUPDATE is published by Nordex AG, Bornbarch 2,

22848 Norderstedt, Germany

Phone: +49 40 30030 -1000, Fax: +49 40 30030 -1101

Editorial office: Felix Losada, Nordex Corporate Communications

Layout: Heuer&Sachse, Hamburg

Edition No. 28

Circulation: 10,000

Cover photo: Nordex

Photos: Nordex

WITH THE EYES OF THE CUSTOMER

QUALITY CHECKS FOR MAINTENANCE ACTIVITIES

810KEY PILLAR IN

OUR STRATEGY

US PRODUCTION FACILITYBEING CONSTRUCTED IN JONESBORO, ARKANSAS

Jonesboro

CONTENTS

| Background

| Business

| Service

| Environment

| Europe

| Asia

| America

| News

| Worldwide

Interview with Thomas Richterich, CEO of Nordex AG

“We are moving closer to our global customers by

establishing and extending local structures” 6

Did you know … 7

Key pillar in our strategy

US production facility being constructed

in Jonesboro, Arkansas 8

With the eyes of the customer

Quality checks for maintenance activities 10

Climate change

Will the ice break more quickly? 12

Europe-wide

Nordex installing 425 MW for Scan Energy A/S 13

Sweden

N90 turbines on-line more quickly than planned 14

Sweden

Contracts signed with DONG, Vattenfall and E.ON 15

Belgium

Order for 22 large turbines from Air Energy 16

France

30 N100 turbines for GDF Suez 17

United States

Why Jonesboro? 18

Interview with Carsten Pedersen, COO Sales and

Marketing, and Jens Olsen, head of Nordex China

“You will get what you have paid for” 20

Japan

Robust N90s in operation at the “Gotsu” wind farm 22

1,000th large-scale turbine produced 23

Worldwide installations 23

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NORDEX PRODUCT PROGRAMME

TYPE CAPACITY REGULATION MARKETS

Nordex S70, S77 1,500 kW Pitch Asia, Asia/Pacific

Nordex N80 2,500 kW Pitch Europe, Asia, Latin America

Nordex N90 2,300 kW Pitch Europe

Nordex N90 2,500 kW Pitch Europe, Asia, America

Nordex N100 2,500 kW Pitch Europe, America

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EDITORIAL

Dear reader,

In autumn 2008, we completed our 1,000th N80/N90 turbine. One thousand wind turbines have under-

pinned technical evolution in the 2.5 MW class over the past eight years. By harnessing the many years of

practical experience gained in this class, our engineers are able to continue enhancing the turbines. Thus,

we already have decisive experience in operating multi-megawatt wind power systems. Yet, this success

would not have been possible without our customers who seek maximum reliability and availability in

selecting the right turbine for their projects. I am most grateful for this confidence. The contracts that we

have received prove that with our multi-megawatt systems we will continue to have the right product in the

future. In this issue of WindpowerUpdate, we again want to keep you posted of our current projects. One

particularly encouraging news item for us concerns the award of a frame contract by our customer Scan

Energy A/S for projects right across Europe.

We are often asked whether we are escaping the effects of the financial market crisis. Numerous experts

assume that at worst growth in the wind power industry will merely slow. The world continues to face

energy and environmental problems which can only be solved by means of efficient energy production and

modern environment-friendly power stations. Similarly, there has been no change in the political commit-

ment to solving the problem. We are investing in new and more modern facilities all around the world to

ensure that we are able to continue on this course in the medium term. In Germany, we have almost com-

pleted our efforts to extend our rotor blade production and will be commencing work on the new turbine

assembly facilities in the near future. In China, we are in the throes of preparations to double our capacity,

while in the United States the acquisition of 187,000 square metres of building land marks a milestone in our

activities in that country. Yet, taking the right steps for the future is not confined to our production facilities

but also includes our service. Thus, we have assembled an additional internal safety network for our main-

tenance activities to ensure that the services which we perform for you at your site achieve an even greater

level of perfection. You can read more about this on the next few pages.

I wish you pleasant reading.

Carsten Pedersen

Mr Richterich, the number of new installations in

Germany is flat. Will there be any change in this

situation?

Germany has the densest network of wind tur -

bines. Even so, I am confident that the wind energy

industry can install 1,500 to 2,000 megawatts a year.

The amended Renewable Energies Act has resulted

in a substantial improvement in conditions for the

use of wind power in Germany. Taking effect on

January 1, 2009, the amended act stipulates a fee of

9.2 euro cents per kWh for onshore facilities and 15

euro cents per kWh for offshore installations.

Does this mean that foreign business will remain

Nordex’s main growth driver in the future?

In the long term, Nordex is competitive only if we

are active internationally. This is because one-third

of demand each is coming from Europe, Asia and

America, with the latter two regions growing the

most quickly. Worldwide, wind power contributes a

mere 1% to the energy balance. In five years this

figure will have increased to 3 %. This means that our

export ratio will remain permanently over 95 %,

clearly showing where our journey is headed. With

our branches in Europe, Asia, and now also the

United States, as well as the establishment of and

extensions to local structures, we are moving closer

to our customers and will be accompanying them as

a partner over the next few years.

Germany plays a leading international role in envi-

ronmental and climate protection. How do you see

the market for wind turbines in China, for example?

Over the past three years, China has been the

market with the greatest growth rates in our industry.

New installations have been growing by 97% year for

year. In 2007, 3,300 wind power systems with a cumu-

lative nominal output of 3,300 megawatts were in-

stalled there. Only in the United States was the num -

ber of new installations greater. If the targets set by

the government are to be reached, a further 4,000 MW

at least must be installed by 2010. What is more, the

government-controlled contracts have been awarded

at substantially higher prices of 7– 8 euro cents per

kW. This makes life easier for us as we still face higher

costs than local operators despite having production

facilities in China. In 2007, the Chinese government

spent around EUR 10 billion on further ing environ-

ment-friendly power stations. As well as this, there are

signs that the government is planning further ambi -

tious targets including the extension of wind power

capacity from a current 5,900 MW to over 60 gigawatts

by 2020 backed by an increase in the proportion of

environment-friendly electricity production to 10%

excluding hydropower. The latter offers particularly

interesting prospects as it will create greater incentive

for utilities to employ quality products.

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INTERVIEW WITH

THOMAS RICHTERICH “WE ARE MOVING CLOSER TO OUR GLOBAL CUSTOMERS BY ESTABLISHING AND EXTENDINGLOCAL STRUCTURES”

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Thomas Richterich, CEO of Nordex AG

DID YOU KNOW . . . ?. . . that according to the 2008 Global Wind Energy

Outlook published by Greenpeace International

and the Global Wind Energy Council (GWEC)

wind power could help to reduce CO2 emissions

by 10 billion tons within 12 years and cover

around 12% of the world’s energy requirements?

. . . that on 1 September 2008 we welcomed our

2,000th employee on board, and have thus

increased our headcount from around 1,500 to

over 2,000 worldwide within the space of one

year?

. . . that we have had a Chinese-language version of

our website at www.nordex-online.com.cn since

the end of October 2008?

. . . that we are supporting the global Wind Power

Works campaign (www.windpowerworks.net)

together with numerous other companies in

our industry to communicate the advantages

of using wind power?

. . . that you can find our trade fair calendar under

www.nordex-online.com?

How do you see our future in Europe?

The European Union is currently working on a

draft directive to encourage the use of renewable

energies including the definition of binding objec -

tives for member states. For example, the share of

renewable energies is to widen to 23% in France,

15 % in the United Kingdom and 18 % in Germany

by 2030. The directive is to be passed in the first

half of 2009. France has already prepared a par -

liamentary bill providing for the target to be raised to

25,000 MW by 2020.

What impact do you think the current crisis in the

financial market will have on Nordex?

Experts continue to project double-digit growth

for the wind power industry. That said, it will not be

spared the effects of the turmoil in the financial mar-

kets. Still, we assume that we merely face a year of

weaker growth as a result of individual project

delays and are convinced that we will see a return to

the original growth rates in the medium term. This is

because the market is still intact, with demand for

energy unabated. Governments remain committed

to climate protection and clean power production.

Demand for wind turbines is particularly being

spurred by energy prices as well as the global

challenges being posed by climate and energy

policy. Despite the financial market crisis these

prices have not eased due to many economies’

dependence on fossil fuels. In addition, with the

mounting volume of emissions being produced by

emerging markets, the political will to step up cli -

mate protection by reducing emissions, particularly

in the energy sector, is being fortified. Following the

renewal of the production tax credits (PTC) for wind

farm operators in the United States by a further year

beyond 2008, there is now heightened visibility for

2009 in the world’s largest single market, while the

victory of the Democratic presidential candidate

Barack Obama also augurs well for wind energy in

the United States. In the election campaign, Obama

announced an extension to the PTC system for a

total of five years and the introduction of a target

obligation aimed at ensuring that 10 % of electricity

in the national grid is produced from renewable

energies by 2012 alongside substantially increased

spending on the electricity grids. Meanwhile, in the

United Kingdom, a key European market, a new

Ministry of Energy and Climate Change has recently

been established. We expect climate protection and

energy to play an even more prominent role on the

political agenda, with renewable energies attracting

greater attention than before.

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KEY PILLAR IN OUR STRATEGY

US PRODUCTION FACILITY BEING CONSTRUCTEDIN JONESBORO, ARKANSAS

Jonesboro is centrally located

to the sales markets in the US.

We are going to locate our US manufacturing

facility in Jonesboro, Arkansas. Here, we will invest

approximately $100 million in the new facility, which

will employ 700 people. The facility will be built on

187 acres in the Craighead Technology Park.

“Today we celebrate another important step for

our State into the renewable-energy industry with

Nordex’s decision to make a significant investment

in Arkansas,” said Arkansas Governor Mike Beebe at

the press conference in October 2008. “While we

have seen a lot of high-quality jobs coming to Jones-

boro in the past few years, Nordex opens up all kinds

of future opportunities for Northeast Arkansas.”

The new plant in Jonesboro is a key pillar in our

international strategy. It will enable us to serve the

US, one of the fastest growing markets for wind

energy, and come closer to our objective of gener -

ating 20% of our revenues in the US.

Our Jonesboro operation will comprise every

component of a wind turbine except the tower, in -

cluding the manufacturing of rotor blades and the

assembly of nacelles. The facility will have a target

annual assembly capacity of approximately 750

megawatts (MW), with planned production to start by

January 2010.

We will focus in Jonesboro on our large-scale

turbine family N90 and N100 (2.5 MW), which is one

of the largest series in the world. The average size of

the newly installed turbines in the US will amount to

1.7 MW.

“Jonesboro offers a perfect environment for

alternative energy companies. It is centrally located,

has an ideal infrastructure, and a large, skilled work-

force. We appreciate state and local support through -

out the planning process and look forward to

ongoing positive and productive relationships,”

stated Ralf Sigrist, President of Nordex USA, Inc.

USA

Jonesboro

Chicago

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WITH THE EYES OF THE CUSTOMER

QUALITY CHECKS FOR MAINTENANCE ACTIVITIES

To prevent minor deviations from turning into

major problems, our customers rely on Nordex

Service to inspect and look after their systems. Our

service technicians examine and clean the turbine

components which are subject to particular wear at

regular intervals. Among other things, they check the

oil in the transmission and top it up if necessary or

replace the filters. Wear-prone parts are primarily

replaced to ensure ongoing system availability.

When a service van drives out to a wind turbine for a

routine check, the Nordex team on board know that

the necessary work must be performed swiftly and

professionally to ensure that the turbine can go back

on-line as quickly as possible. However, swift main-

tenance must not come at the expense of quality. At

Nordex we are committed to top quality. This entails

an ongoing process and improvements to addition -

ally enhance our activities.

It is with this in mind that we have created an

additional safety network for our maintenance work.

True to the motto that it is better to be safe than

sorry, we have established the QA Service (quality

assurance) department. This is an independent team

at Nordex which is responsible for supervising and

evaluating maintenance activities. For this purpose,

the members of the QA Service team examine the

work performed by the Nordex service technicians

immediately after the commencement of their work

by reference to quality and safety-related criteria.

Visits by QA Service are not pre-announced to the

responsible service staff or our customers. In per -

forming their activities, the QA Service staff do not

repeat the actual maintenance process but examine

the work performed through the eyes of the cus -

tomer. In doing so they concentrate on site safety,

cleanliness and also perform more extensive checks

of individual components.

These activities also include an examination of

the controlling cabinets, ladders and the hub, for

example. QA Service then evaluates the findings of

its inspection and submits the results to the Nordex

service team concerned. In this way, we are able to

draw our service technicians’ attention to possible

areas which require attention and which can be

addressed during the next service.

At the moment, the QA Service team comprises

six employees who have been specially trained for

their duties. Over the past eight months, they have

examined the maintenance activities performed on

around 150 wind turbines in nine European coun-

tries. The customer response has been consistently

good.

The QA Service team examines maintenance work by reference

to quality and safety-related criteria.

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It took several thousands of years for the ice

sheets to form at the poles. Yet, they are now disinte-

grating more quickly than previously assumed. This

is the conclusion drawn by James Hansen, head cli-

matologist at US space agency NASA, who pub -

lished the latest findings of his research into the

effects of climatic warming at the end of 2008. He

argues that the ice masses are melting more quickly

due to “fast feedback” effects, i.e. reactions caused

by global warming which mutually amplify each

other.Thus, the rate at which the ice sheets are disin-

tegrating is being accelerated by the energy stored

in the greenhouse gases on our planet as they pre-

vent the heat emitted by the earth’s surface from

escaping into space. As a result, the temperature of

the air on our planet is increasing, which in turn is

causing the ice sheets to melt. As a general principle,

the ice at the poles or in glaciers reflects sunlight

back into space, causing the atmosphere to cool.

However, if the snow has melted, the darker ice

absorbs more radiation and in turn also melts. The

underlying ground which now becomes exposed or

the ocean surface absorb even more heat. As a

result, the melting cycle speeds up even further.

Hansen bases his theories on paleoclimate data

and comes to the conclusion that the average global

temperature today has come to within about one

degree Celsius of the highest level reached at any

time in the past one million years. Previously, the

earth had been two to three degrees warmer. At that

time there was no ice floating on the Arctic Ocean in

the summer and sea levels were 25 metres higher

than they are today. If the earth continues to warm at

the same rate, temperatures will reach the range last

seen three million years ago by 2100. There was also

a comparable increase in temperatures towards the

end of the last ice age 14,000 years ago. At that time,

sea levels rose by 20 metres in only 400 years, equiva -

lent to one metre every 20 years. According to

Hansen, sea levels have risen by three centimetres in

the past ten years alone, twice the amount recorded

in the entire 20th century. This process will be acceler -

ated by global warming caused by man through the

combustion of fossil fuels and the generation of cli-

matically harmful CO2 emissions. Hansen warns that

the speed at which sea levels are rising will acceler -

ate drastically with the result that they will again

increase by one metre every 20 years. Although only

2 % of the world’s land mass is less than ten metres

above sea level, these are particularly populous

regions. Thus, cities such as New York, London,

Sydney, Mumbai, Tokyo, Shanghai and extensive

parts of Bangladesh, The Netherlands or the east

coast of the USA, all of which account for some 10 %

of the global population, would be submersed.

Against this backdrop, Hansen is appealing to all

countries to take steps to reduce emissions of green-

house gases and thus to prevent sea levels from

rising.

CLIMATE CHANGE

WILL THE ICE BREAK MORE QUICKLY?

We have already put some 100 MW on grid for

our customer Scan Energy A/S, and this is now to be

followed by a further 425 MW: to give Scan Energy a

competitive edge the Danish independent power

producer has ordered a total of 170 turbines from the

N80/90/100 (2500 kW) family. The date fixed in the

master agreement for delivery and installation of the

first 41 machines is 2010, with 46 turbines following

in 2011 and 83 in 2012. The order is worth some EUR

500 million, including service for up to ten years after

installation.

The 2.5 MW turbines are intended for projects in

11 countries: Germany, France, England, Spain, Italy,

Poland, Greece, Croatia, Hungary, Turkey and

Romania. “We already have double-digit market

shares in many of these countries. But this order also

gives us an opportunity to enter new markets such

as Romania. We are pleased that Scan Energy A/S has

taken this next step in its successful collaboration

with us,” says Carsten Pedersen, COO Sales and

Marketing at Nordex AG.

“The importance of relationships is paramount

for Scan Energy A/S, and this framework agreement

will help us to grow both in our core markets as well

as in new markets,” says Karsten Olsen, CEO at Scan

Energy A/S.

Scan Energy A/S focuses on wind and solar pro-

jects in high-growth markets in order to build up a

diversified renewables portfolio. The Danish inde-

pendent power producer currently operates and

owns wind and solar farms with a total capacity of

550 MW. A further 300 MW are currently under erec-

tion. Scan Energy A/S’ near-term primary focus is to

continue to expand the installed capacity in their

core markets Germany, France, Poland, Italy and

Spain to a level of approx. 500 MW per country. Fur-

thermore, Scan Energy A/S intends to find a number

of carefully selected large-scale projects in the rest of

Europe, Canada, the US and Turkey, which have

favourable wind and solar conditions. Scan Energy

A/S’ goal in these markets is to establish a substan -

tial portfolio of operating plants.

EUROPE-WIDE

NORDEX INSTALLING 425 MW FOR SCAN ENERGY A/S

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Although small, “Huds Moar” is a special project

as it marks our successful return to Sweden. Back in

2003, we had withdrawn from the Swedish market as

business volumes were too small. However, when

new impetus entered the Swedish market in 2006,

we came back, opening a branch in Uppsala near

Stockholm.

“Huds Moar” was one of the first contracts which

our local team received. At the same time, this wind

farm is the first one in Sweden to be fitted with high-

output Nordex turbines. In May 2008, six N90/2500

turbines producing a joint nominal output of 15 MW

went on line. This also marked the 750th member of

the N80/N90/N100 family to be installed worldwide.

One crucial reason prompting our customer Rab-

balshede Kraft to opt for our N90/2500 was the avail -

ability of a low-speed version of this turbine. The N90

Low-Speed achieves an optimum yield even in

weaker wind conditions. Rabbalshede Kraft is an

ambitious private investor which wants to build 50

wind power systems a year. The company said that it

was very satisfied with its relations with us. In fact,

the wind farm went into operation six weeks ahead

of the planned date. At the ceremony held on the

occasion of the start-up of operations, Rabbalshede

Kraft also signed a follow-up contract for the delivery

in 2010 of a further six N90/2500 Low-Speed turbines

for its “Brattön” project.

For us, “Huds Moar” was merely the first step in

building up business in Sweden. By the time this

wind farm was connected to the grid, the second

project following our return to Sweden was already

underway. Known as “Bondön”, this project com -

prises 14 N90/2500 turbines and will also be going

into operation in the near future.

SWEDEN

N90 TURBINES ON-LINEMORE QUICKLY THAN PLANNED

A year after our return to the Swedish market, we

are increasingly scoring with the country’s major

utilities. Now, DONG Energy A/S, a merger of six

Danish energy companies, has awarded us a con-

tract for the construction of the Storrun wind farm,

which is to comprise 12 Nordex N90/2500 kW wind

turbines. Located in the central Swedish province of

Jämtland, the wind farm is to be installed during

Summer 2009 and go into operation at the end of

2009. DONG and Nordex are jointly planning to use

the site to make testing of different equipment which

will improve the performance of the turbines during

icing weather conditions.

Vattenfall and E.ON have each ordered two wind

turbines from the same platform. Vattenfall wants to

use them in its “Ryningnäs” project in Småland,

where it plans to test wind farm sites in non-coastal

forest regions. E.ON, for its part, is repowering its

“Axeltopfta” wind farm in Landskrona.

“Large utilities such as DONG, Vattenfall and

E.ON are already dominating our sales in interna -

tional markets. In Sweden we have now also qualified

for this important customer segment. This marks a

milestone for our subsidiary and is also of crucial

strategic importance for us,” says Carsten Pedersen,

COO Sales and Marketing at Nordex.

SWEDEN

CONTRACTS SIGNED WITH DONG, VATTENFALL AND E.ON

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Successful entry into the market: we have ob -

tained our first order from Belgium. In the coming

two years we will supply up to 22 large turbines from

the N100/2500 series for Air Energy, one of the

biggest wind farm developers in Belgium. We will be

installing the machines in several projects mainly

located in Wallonia. The value of the framework

agreement comes to around EUR 73 million. In addi-

tion to this, Nordex and Air Energy have signed

Premium Service Agreements for periods of ten years.

The sites developed by Air Energy in Wallonia are

characterised by moderate wind speeds of between

6 and 7 m/s. These are exactly the site conditions for

which the Nordex N100 is designed. This turbine is

able to make optimal use of wind power in inland

regions. By choosing our latest technology, Air

Energy will have access to the new range of the

2.5 MW turbine type.

Entry into the Belgian market comes at just the

right time in terms of the growth outlook–new cap -

acity of 830 MW is to be created by 2012. Last year a

mere 75 MW were added to existing capacity. Bel -

gium has set itself the target of increasing the share

of “green” energy on grid from today’s 2% to around

13% by 2020. “The order from Air Energy is a good

reference for us, which will enable us to create an

important foundation for expanding our business in

Belgium,” said Carsten Pedersen, COO Sales and

Marketing at Nordex.

Founded in 2001, Air Energy is active in the field

of electricity production from renewable sources

and more specifically from wind energy. Having put

55 MW on grid to date and with another 26 MW

under construction, the Group is one of the market

leaders in the Belgian wind industry. Air Energy is

indirectly controlled by the Dutch Group Eneco.

BELGIUM

ORDER FOR 22 LARGE TURBINES FROM AIR ENERGY

Nordex France has received a new major order:

our French subsidiary has entered into a contract

with energy group GDF Suez for the delivery and

installation of 30 Nordex N100/2500 turbines. The

project is to be handled via the GDF Suez subsidiary

Nass & Wind Technologie, and will be supplemented

by a premium service contract.

The N100 turbines are to be supplied in 2010 and

will primarily be used in the “Germinon” project

located in the department of Marne in the north-east

of France. The site is close to the wind farm of

“Cernon”, which is operated with eleven Nordex

N90/2500 turbines and was built for Nass & Wind

Technologie before its acquisition by GDF Suez.

Wind speeds at the site average 7.4 m/s, meaning

that the use of the mainland N100 turbine will ensure

optimum yields. With an installed total capacity of up

to 75 MW, “Germinon” will have the potential to pro-

duce more than 200,000 MWh a year.

“We have gained in GDF Suez a further important

international customer. This marks the commence-

ment of closer joint activities,” says Nordex’s COO

Sales and Marketing Carsten Pedersen. With 334 MW

in operation and construction permits for a further

500 MW GDF Suez is already one of the largest wind

farm operators in France. In Europe as well it is a lead-

ing energy provider. GDF Suez plans to generate

20 % of its European-wide electricity production

from renewable energies in the future, with wind

power to play the leading role.

FRANCE

30 N100 TURBINES FOR GDF SUEZ

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SA

Speech by Ralf Sigrist, President & CEO Nordex

USA, Inc. at the press conference, 24 October 2008

“I’d like to thank Governor Beebe and his team,

the Arkansas and Jonesboro Economic Develop-

ment bodies, the City of Jonesboro and its respect -

ive bodies, Craighead County, Arkansas State Uni-

versity, the Regional Chamber of Commerce and the

local utilities for making this partnership possible.

Today marks an important milestone for Nordex:

For our customers, our investors, and our people in

the US and abroad, for me as President of Nordex

USA, and for the people of Jonesboro.

Since we’re new in town I’d like to begin today by

telling you a little bit about Nordex. Since 1985 we

have been in the business of harnessing wind power.

Carsten Pedersen and his family started this com -

pany with a simple vision: to produce electricity wit-

h out burning fossil fuels. As a wind pioneer in the

eighties, Mr Pedersen and many others were often

ridiculed for their novel ideas about power gener -

ation, but they did not let others deter them. At the

ripe old age of 24, Carsten Pedersen built the largest

series of wind turbines in the world at that time and

Nordex continued to do so over the years.

Today, Nordex is one of the fastest-growing com-

panies in its industry, with a compound annual

growth rate of 50% in the last four years and revenu-

es of almost $1 billion in 2007.

Our expertise is in large-scale wind turbines. We

are a technological leader in multi-megawatt wind

power systems and, to date, we have produced more

than 1,000 of these multi-megawatt turbines around

the globe.

Turbine assembly here in Jonesboro will begin at

the end of next year, and as early as 2010 the first

locally produced 2.5 MW N80/90 wind turbine will be

installed in the US. Our $100 million investment will

go toward establishing annual production capacity

of 300 wind turbines by 2012 (equalling 750 mega-

watts of nominal capacity per annum). By 2010, we

want to invest two-thirds of our investment in rotor

USA

WHY JONESBORO?

Ralf Sigrist, President & CEO Nordex USA

blade production. With the rotor blade production

being operational at full capacity in 2012 we will have

over 700 Arkansans as a part of our Nordex USA team.

That is nearly one-third of our current global work -

force. You can see how important Jonesboro is for us.

Today is only the beginning. Our goal is to

become one of the leading wind turbine manufac -

turers, generating 20% of our revenue here in the

US. And thanks to this partnership, we are one signi-

ficant step closer.

Looking toward the future, the prospects for our

industry remain very encouraging. Wind is the

world’s fastest-growing energy source with an

aver age annual growth rate of 29% over the last ten

years. It is also the most affordable renewable energy

and at some locations simply the most competitive.

Power generation costs have fallen by 50% in the last

15 years, moving the generation costs of wind power

systems close to grid parity. The world wide installed

capacity is estimated to more than triple over the next

five years to reach 290 gigawatts by 2012.

One last, but important, point I’d like to make.

Why Jonesboro? We started this process more than a

year ago. We have looked at over 35 different pros -

pects. We finally chose Jonesboro because it pro -

vides the perfect environment for us as a renewable

energy company with its central location, ideal infra-

structure, its training facilities and its skilled work -

force. But, in the end, it was the people here, the

Governor, city officials and their great team that

convinced us that we had made the absolute right

decision. I thank you and look forward to a long,

fruitful relationship.”

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Nordex has set itself ambitious targets for its busi-

ness in Asia. In the near future the Far East is set to

account for a good 20 % of revenues. However, today

not only have the major international manufacturers

built factories there, around 40 local competitors

have set up business, too. At the end of October we

exhibited at Global Windpower in Beijing. Were you

able to make good progress at the trade fair?

Olsen: Yes, we have had a number of important

talks with existing and potential new customers–to

name names, these are Beijing Energy and other

important utilities. There is still considerable interest

in our turbines in China. This encourages us in our

plans to expand the factories in Dongying and

Yinchuan to an annual output of around 350 – 400

MW, which are due to be available as soon as 2009.

The trade associations have just published new pro-

jections for China, according to which new installa -

tions for 2009 are predicted to be at the same level of

2008 which is between 4,500 – 5,000 MW.

Are the expected projects large-scale or more

modest in volume?

Olsen: We still bid principally in tenders at a pro-

vincial level, where our chances of success are

greater. Although these projects have an upper limit

of 50 MW, in some cases it is also possible to obtain

better prices. Generally speaking, it is sometimes dif-

ficult for “foreign brands” to win out against Chinese

suppliers, although we certainly see ourselves as a

domestic company. After all, we pay taxes here,

employ largely Chinese staff, and invest our money in

the country.

INTERVIEW WITH

CARSTEN PEDERSEN, COO SALES AND MARKETING, AND JENS OLSEN, HEAD OF NORDEX CHINA “YOU WILL GET WHAT YOU HAVE PAID FOR”

For some years now the Chinese government has

been giving massive support to the expansion of

wind energy. However, there is a lot of criticism to

the effect that there is no incentive for operators to

invest in high quality. It is not the quantity of

“green” electricity actually produced that counts,

but the installed capacity –whether the turbines are

rotating or not. Is there any change in sight here?

Olsen: Indeed, there are many examples where

turbines have been installed that broke down after

only a short time. This has to change as China is not

moving towards “renewables” just as a showcase

operation. We have a considerable shortfall in elec -

tricity supply here and a huge environment problem,

which will not get any smaller in this way. A quality

initiative would benefit Nordex as a premium brand.

But apart from the argument that our machines

make more economic sense over an operating life of

20 years, our success is based on localisation. Today

we work together with 50 local suppliers. We now

have partners in China for core components such as

the gearbox, generator and converter. Around

75–85 % of our added value is already created in

China. This makes prices more favourable. We are

still 15–20 % more expensive than Chinese brands,

but much more competitive than last year, and it is

our major objective to reduce the gap by intensifying

our localisation efforts. I like to persuade my cus -

tomers with the motto: “You will get what you have

paid for.”

Are you also considering exporting turbines from

China?

Pedersen: Yes, China will be our bridgehead to

Asia. Although the neighbouring markets are much

smaller than China, there are regularly interesting

projects there with which money can be made.

Is this also true of the Australian market?

Pedersen: We have not yet determined our strat -

egy for Australia. At the moment we assume that

larger products are required there which we shall not

be manufacturing in China in the foreseeable future.

Some Chinese manufacturers are planning to offer

their products internationally as well. Are we threat -

ened with stronger competition worldwide?

Pedersen: I do not regard this as a threat at the

moment. The Chinese are not yet able to produce to

the internationally required standard in technical

terms. They often also lack the necessary references

in this connection as many customers in Europe and

America want to be sure that their investment will

pay off over the years. The fact that there are occasio-

nally declarations of intent in spite of this is probably

due more to the fact that the established manufac -

turers are sold out far into the future. Basically,

I expect only some of the manufacturers in China to

survive in the long term. A similar concentration took

place years ago in Germany, Denmark and Spain.

Why should things be any different in China?

Carsten Pedersen, COO Sales and Marketing (left)

Jens Olsen, head of Nordex China (right)

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In June 2008, the first Nordex N90/2500 High-

Speed wind turbines went on-line in the Japanese

prefecture of Shimane. Nine of these turbines are

now in operation the “Gotsu” wind farm on the

island of Honsh–u, albeit in reduced-output versions.

We supplied the high-speed turbines with a nominal

output of 2,300 kW, as only a limited amount of elec-

tricity can be fed into the grid. The turbines were pro-

duced in a 60 Hz version on account of the grid fre-

quency used in this region.

“Gotsu” was constructed in a forest region. The

turbines are lined up side by side along a crest some

four kilometres in length at altitudes of between 180

and 260 metres. Carefully tarred and curbed access

roads lead up to the turbines and, together with the

neatly laid-out lawn, make the wind farm reminis-

cent of a golf course.

This has been achieved thanks to the planning

activities and work of Ishikawajima Plant Construc -

tion (IPC), a subsidiary of Ishikawajima Heavy Industry

(IHI), our trading partner in Japan. Back in 2000, we

entered into an exclusive distributor agreement pro-

viding for IHI to act as our agent in Japan.

The high-speed version is ideally suited for the

Japanese market. Given the frequent occurrence of

typhoons, extremely robust wind turbines are cru -

cial. And the N90 High-Speed fits this bill perfectly

with its IEC-1-certified towers, which are ideally

suited for locations characterised by extreme wea -

ther conditions. The turbines in use at “Gotsu” are

additionally fitted with efficient lightning conducting

systems.

The wind farm is to generate up to 40,000 MWh

of clean energy a year, sufficient to cover the electri-

city requirements of some 10,000 households.

All told, the wind power market in Japan is still

relatively small. Yet, with a total installed capacity of

55 turbines generating an aggregate 86.7 MW, we

hold a very strong position.

JAPAN

ROBUST N90s IN OPERATION AT THE “GOTSU” WIND FARM

+ + + Short News + + + Short News + + + Short News + + + Short News + + + Short News + + + Short Ne

In October 2008 we completed the 1,000th tur -

bine in our N80/N90 series. “We produced our first

2.5 MW machine in the year 2000–a world record at

the time,” recalls Carsten Pedersen, COO Sales and

Marketing. “More than eight years of wide-ranging

experience with this turbine class in all climate zones

give us a considerable competitive edge.” Some 60

persons worked in shifts on the jubilee machine. As

with every turbine at Nordex, it passed through six

production stages with a total of around 570 parts

being installed–from the gearbox down to the smal-

lest screw. The “Number 1,000” is intended for the

“Lisset Airfield” project in the United Kingdom.

1,000TH LARGE-SCALE TURBINE PRODUCED

WORLDWIDE INSTALLATIONS

COUNTRY INSTALLED WIND TURBINES

diverse N60/1300 S70/1500 Total Total (MW)

up to 1 MW N62/1300 S77/1500 N90/2300 N80/2500 N90/2500 N100/2500 installations

Austria 6 3 – – – – – 9 5.30

Bulgaria – 3 – – – – – 4 6.40

Canada – 20 – – – – – 20 26.00

China 204 41 130 – – – – 375 361.90

Columbia – 15 – – – – – 15 19.50

Czech Republic – – 3 – 3 – – 6 12.00

Denmark 125 52 – 2 – 1 – 180 148.55

Egypt 105 – – – – – – 105 63.00

Estonia – – – 8 – – – 8 18.40

Finland – 3 – – – – – 3 3.90

France 58 36 – 141 22 125 – 382 775.05

Germany 544 353 441 84 35 7 1 1,465 1,739.85

Greece 46 – – – – – – 46 28.85

India 263 – – – – – – 263 57.85

Ireland – 4 – – 10 9 – 23 52.70

Italy 2 – 26 37 1 30 – 96 203.20

Japan 16 29 – – 2 9 – 56 73.10

Norway – – – – 16 – – 16 40.00

Poland 1 – 3 – 4 – – 8 14.75

Portugal 3 32 – 69 – 16 – 120 242.70

Spain 25 56 – – – 22 – 103 142.80

Sweden 1 – – – – 24 – 25 60.60

The Netherlands 10 – – – 25 10 – 45 94.70

Turkey – – – – – 10 – 10 25.00

United Kingdom 9 60 – 26 86 38 – 219 454.40

USA 12 12 – – – 18 – 42 71.45

Other* 21 – – – – – – 21 11.70

Total installations 1,451 719 603 367 204 320 1 3,665

Total (MW) 757.85 934.70 904.50 844.10 510.00 800.00 2.50 4,753.65

Total installations: 3,665 Total (MW): 4,753.65 As of: 10 December 2008

*Australia, Belarus, Israel, Latvia, Luxembourg, Russia, Syria, Hungary, Uruguay

Country total: 35

WE ARE REPRESENTED WITH OFFICES AND SUBSIDIARIES WORLDWIDE.

Nordex AG

Bornbarch 2

22848 Norderstedt

Germany

Phone: +49 40 30030 1000

Fax: +49 40 30030 1101

E-mail: info@nordex-online.com

Sales Nordex Energy GmbH

Bornbarch 9

22848 Norderstedt

Germany

Phone: +49 40 30030 1490

Fax: +49 40 30030 1491

E-mail: info@nordex-online.com

Service Nordex Energy GmbH

Bornbarch 2

22848 Norderstedt

Germany

Phone: +49 40 30030 1209

Fax: +49 40 30030 1301

E-mail: info@nordex-online.com

Nordex Energy GmbH

Erich-Schlesinger-Straße 50

18059 Rostock, Germany

Phone: +49 381 6663 3300

Fax: +49 381 6663 3339

E-mail: info@nordex-online.com

Nordex Energy GmbH

C. F. Tietgens Vej 10

6000 Kolding, Denmark

Phone: +45 75 73 44 00

Fax: +45 75 73 41 47

E-mail:denmark@nordex-online.com

Nordex Sverige AB

Kungsängsvägen 21

75323 Uppsala, Sweden

Phone: +46 18 185 900

Fax: +46 18 185 927

E-mail: info@nordex-online.com

Nordex Energy GmbH Benelux

It Reidlân 79

8502 CE Joure, The Netherlands

Phone: +31 513 41 23 54

Fax: +31 513 41 85 88

E-mail: info@nordex-online.com

Nordex Energy Ibérica S.A.

Calle Ausiàs Marc, 23 pral.

08010 Barcelona, Spain

Sales Office:

Pso. de la Castellana, 23 2º-A

28046 Madrid, Spain

Phone: +34 91 7000356

Fax: +34 91 3199388

E-mail: spain@nordex-online.com

Nordex Polska Sp. z o.o

Al. Jana Pawla II 80 m.C22

00-175 Warsaw, Poland

Phone: +48 22 636 52 77

Fax: +48 22 637 30 01

E-mail: info@nordex-online.com

Nordex Energy GmbH

c/o Thomas Annegg

Schöffelgasse 4/6

1180 Vienna, Austria

Phone: +43 1 615 39 38 10

Fax: +43 1 615 39 38 20

E-mail: info@nordex-online.com

Nordex Italia S.r.l.

Viale Città d'Europa 679

00144 Rome, Italy

Phone: +39 06 83 46 30 01

Fax: +39 06 83 46 30 60

E-mail: info@nordex-online.com

Nordex UK Ltd.

Suite 4, Egerton House

The Towers Business Park

Didsbury M20 2DX

United Kingdom

Phone: +44 161 445 99 00

Fax: +44 161 445 99 88

E-mail: uk@nordex-online.com

Nordex France S.A.S.

1, Rue de la Procession

93217 La Plaine Saint-Denis, France

Phone: +33 155 93 43 43

Fax: +33 155 93 43 40

E-mail: france@nordex-online.com

Nordex China

Room 808

First Shanghai Center, No. 39

Liangmaqiao Road

Chaoyang District

Beijing 100125, P. R. China

Phone: +86 10 84 53 51 88

Fax: +86 10 84 53 51 58

E-mail: china@nordex-online.com

Nordex USA, Inc.

300 South Wacker Drive, Suite 1500

Chicago, Illinois 60606, USA

Phone: +1 312 386 4100

Fax: +1 312 386 4101

E-mail: nordexUSA@nordex-online.com