Moderator: Dan Radonski – Kinetic Partners
9:15a – Ralf Sigrist : President/CEO Nordex USA
– Arkansas legislator is voting on a cap for amount of Windpower to add into utility. Argument is it will drive cost of overall energy up. Want to cap at 5MW down from 50MW.
– North America represents 25% of overall Nordex annual revenue.
– 162 MW scheduled Nordex installations in 2011
– 75% of US installation contains domestic components.
– Raw material and component cost increase to Nordex for domestic components is up 25%
– Long-term costs for wind is in ongoing maintenance. Instance of this cost: raising crane for repairs is $200k daily- just for the crane.
– Quick on hand and turn around is key for domestic suppliers to compete for Nordex business. Right now in many cases even with significant logistic costs, components are trending cheaper coming from China.
– Other major issue for supply chain for OEM Manufacture is longterm cost stability. Nordex has to guarantee cost in a bid to sell turbine for minimum of 12 months. Component Suppliers and steel producers want to shorten to 30,60,90 day for their cost guarantees…doesn’t add up.
9:40a – Stephen Spethmann, Dir. Supply Chain – Suzlon Wind Energy.
– 2011 looks pretty slow for new installations for Suzlon.
– Growth potential is in O&M…5 key customers require 24/7 support. Looking to grow this in US.
– Small presence in China, but India is booming!
– US market is growing for Suzlon. 2500. MW installed at end of ’10.
– After acquisition of REpower in 2009, the combined installation makes them 3rd in market share. Companies run some what independent. Supply chain opportunity for entire market though.
– Finance markets lending & component technology will drive or stifle Windpower market.
Supply Chain Opportunity &Challenges/
– Towers: delivery cost and logistics are main issues.
– Blades: innovation, material, & logistics
– Drivetrain & Generator: Permanent Magnet opportunity, Copper Costs are unstable, unexpected downtime is a killer for O&M.
– key for both opportunity is keep costs down, quality up, & have supply on hand and you get the business!
– Supply on hand is key…”Don’t let a Penny hold up a Dollar”…a bearing, gear, or blade might be cheaper and better but if supply holds up manufacturing or repair then it will be over looked in overall supply chain.
10:00a – LM Wind Power
– Supplier of Wind Turbine blades
– also had O&M operation as well as a Brakes division.
– 3 manufacturing facilities in US. Two in Arkansas and 1 in ND.
– Supply all major OEM
– Trends in blade business: longer lighter blades, larger blades, more efficiency that drives turbine.
– US Supply demand is uncertain through 2014…forecast as level.
– USA Offshore potential of 4GW through same time period (2014)
Q&A
-Q1 – What has changed or biggest challenge in Supply Chain to OEM?
A- Ralf Sigrist : 3-5 year order guarantees are thing of past. Supplier needs to share risk with OEM. Also it’s ridiculous to only offer 1 year warranty for a part that is supposed to last 10-20 years.
-Q2: With a saturation of OEM manufacture compared to market size, how important is innovation from both OEM & supplier?
A- Ralf: we are always looking to innovate when it makes sense. We won’t innovate just to innovate though.
Filed Under: Turbines
