OFFERING MEMORANDUM Global Offering of up to ... - Nordex
OFFERING MEMORANDUM Global Offering of up to ... - Nordex
OFFERING MEMORANDUM Global Offering of up to ... - Nordex
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forecasts, Northern Africa, primarily Egypt, Morocco and Tunisia are expected <strong>to</strong> show stable growth in<br />
the number <strong>of</strong> installations.<br />
The following table contains information taken from the BTM Consult ApS report for 2000 and<br />
illustrates the market forecast <strong>up</strong> <strong>to</strong> 2003 based for installed megawatt capacity for selected countries<br />
and regions, which are important <strong>to</strong> the Company:<br />
Country/Region<br />
Total<br />
installed<br />
MW at end<br />
<strong>of</strong> 1999<br />
Newly<br />
installed<br />
MW in<br />
1999 Forecast 2000 <strong>to</strong> 2003 in MW<br />
Newly<br />
installed Total<br />
MW from installed<br />
2000 <strong>to</strong> MW at end<br />
2003 <strong>of</strong> 2003<br />
1999 1999 2000e 2001e 2002e 2003e Sub<strong>to</strong>tal Total<br />
Germany 4,442 1,568 1,400 1,600 1,200 1,500 5,700 10,142<br />
Spain 1,812 932 1,500 1,500 1,500 1,800 6,300 8,112<br />
Denmark 1,738 325 300 200 300 400 1,200 2,938<br />
UK 362 24 50 100 200 300 650 1,012<br />
Greece 158 103 100 100 150 150 500 658<br />
Portugal 61 10 30 30 40 50 150 211<br />
France 25 4 75 100 125 200 500 525<br />
Turkey 9 0 20 100 100 150 370 379<br />
United States 2,445 477 300 600 400 500 1,800 4,245<br />
China 262 25 150 150 200 300 800 1,062<br />
India 1,035 43 100 150 200 300 750 1,785<br />
Europe (<strong>to</strong>tal) 9,737 3,192 4,010 4,445 4,615 5,620 18,690 28,427<br />
American<br />
continent<br />
(<strong>to</strong>tal) 2,667 548 400 800 600 750 2,550 5,217<br />
Asia (<strong>to</strong>tal) 1,376 115 330 380 530 730 1,970 3,346<br />
(Source: BTM Consult ApS – March 2000)<br />
The Company anticipates that the cost <strong>of</strong> electricity generated from wind energy as compared with<br />
conventional energy sources will decline significantly, although the price <strong>of</strong> wind-generated electricity<br />
is strongly influenced by the location <strong>of</strong> the turbines. The Company believes that in a few years’ time,<br />
wind turbines in favorable coastal locations will be able <strong>to</strong> produce electricity more economically than<br />
gas-powered plants. The Company bases this belief on the continued decrease in the cost <strong>of</strong> producing<br />
power from wind energy per kWh, and on increases as in the price <strong>of</strong> fossil fuels. The Company believes<br />
that the reduction in the cost <strong>of</strong> producing power from wind energy will come from a reduction in<br />
investment costs <strong>of</strong> wind turbines per kW <strong>of</strong> installed capacity. In the period from 1991 <strong>to</strong> 2000,<br />
investment costs per kW <strong>of</strong> installed capacity declined by approximately 40% (source: BTM Consult<br />
ApS-March 2000). According <strong>to</strong> the March 2000 study by BTM Consult ApS, costs per installed kW are<br />
expected <strong>to</strong> fall by another 15%-20% in the next five years.<br />
The Company believes that the falling investment costs per installed kW are principally the result <strong>of</strong> the<br />
continually increasing kW capacity per turbine, which is increasing faster than turbine manufacturing<br />
costs. In the coming years, the Company believes that the nominal output <strong>of</strong> wind turbines will<br />
increase further.<br />
Competition<br />
The competitive position <strong>of</strong> the <strong>Nordex</strong> Gro<strong>up</strong> is characterized by strong market concentration <strong>of</strong><br />
manufacturers <strong>of</strong> wind turbines. In 1999 approximately 92% <strong>of</strong> the global market for wind turbines,<br />
measured by installed capacity, was accounted for by only eight manufacturers, including the <strong>Nordex</strong><br />
Gro<strong>up</strong> (source: BTM Consult ApS – March 2000). Some individual regional markets such as China, Egypt<br />
or The Netherlands are dominated by just two or three s<strong>up</strong>pliers. The <strong>Nordex</strong> Gro<strong>up</strong>’s primary<br />
competi<strong>to</strong>rs in the wind turbine manufacturing market are the Danish producers, NEG Micon A/S,<br />
40