Nordex is mulling outsourcing production from Rostock on the Baltic Sea to Asia in an attempt to cut rising costs, reports sector media Renewables Now in reference to German daily Ostsee Zeitung.

The German OEM’s only domestic manufacturing site is in Rostock, and a potential relocation would jeopardize up to 2,000 job.

Such considerations are reportedly based on the deficits the company has incurred over the last two years as rising costs for materials and transportation have squeezed profit.

A representative from labor union IG Metall has told news agency DPA that Nordex is assessing the future of its manufacturing setup in the northern German city, and while changes are on the table, no final decision has yet been made.

Relocating would come as little surprise considering the negligable importance of the domestic market for Nordex – a fact also tied to increasing expenses, says Andree Ifflaender, head of project development Offshore Wind & project manager Offshore, to Ostsee Zeitung, according to Renewables Now.

Germany’s federal government and that of Mecklenburg-Vorpommern must pass measures, Ifflaender says, to make the German market more attractive for sector companies, to reduce network fees as well as accelerate the build-out of renewables power.

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