OFFERING MEMORANDUM Global Offering of up to ... - Nordex

The Nordex Group has already established its own sales subsidiaries or offices in Germany and
Denmark, as well as nearly all of its important growth markets such as Spain, China and the United
States. In order to expand its existing presence in regional markets, the Company is pursuing a multipronged
strategy tailored to each market: whereas in Germany the Nordex Group is focusing on the
sale of large, megawatt turbines and the completion of large scale projects, in other markets it will
concentrate on the sale of mid-sized turbines (such as the N-50/N-60) and the expansion of regional
sales (e.g. in Spain and France) and the establishment of its own sales structures (e.g. in the UK). In
China, the Company’s goal is to secure its market position by utilizing locally provided servicing and by
manufacturing wind turbines through its joint venture. In addition to growing organically, the
Company intends to acquire competitors or enter into strategic partnerships in order to move into new
markets.
Reinforcement of Servicing Activities
The Company plans to increase customer loyalty in its established markets through the building up of a
customer-oriented, international servicing network, thereby securing and building up a further
advantage over its competitors. A key element in reinforcing the Nordex Group’s servicing activities —
in addition to the further expansion of service centers — is its own control technology, Nordex Control.
This control technology monitors and controls wind turbines continuously through built-in sensors. In
the future, the data will not only be reported to the Nordex Group’s control center electronically, but
will also be available for customers to view via a Web browser.
In order to increase the quality of its services further, the Company has put in place an ongoing
program to improve the level of qualification of its employees. A Servicing Academy was founded at
the end of 2000 for this purpose, which is also open to employees of partner companies.
Products and Production
The core competency of the Nordex Group is the development and engineering of large wind turbines,
the development and manufacture of control systems for wind turbines, including grid connections,
and the development and manufacture of rotor blades for megawatt wind turbines.
Technical Background
A wind turbine comprises a mast, a nacelle, which contains the essential mechanical and electrical
parts, and a rotor. However, the generation of electricity by a state-of-the-art wind turbine is a result
of the specific interplay of various highly developed and synchronized components.
The technical achievement in developing a wind turbine lies in harnessing the wind, the speed of which
changes continually from minute to minute, and the power of which fluctuates depending on the air
temperature, to generate a stable level of power whatever the wind conditions. The goal of the
technical efforts and optimization, therefore, is to generate the highest constant level of power output
possible from all possible wind conditions. The keys to achieving this are: the rotor blades must extract
the maximum amount of energy from the wind and convert it into torque, the drive train along with
the gear and the generator must efficiently convert the captured energy to electricity with as little
capacity lost as possible, the power output of the wind turbine itself must be limitable to prevent
damage to the turbine and adjustable to cope with the entire range of possible wind speeds, the
controlling electronics of variable-speed wind turbines must control the interplay of all components
and optimize the amount of energy captured from the wind, the wind turbine and its individual
components must be highly robust to withstand the forces acting on it and to seek to achieve problemfree
operation for as long as possible.
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