Engineering manufacturing group FKI is to close its wind turbine manufacturing business DeWind because of difficult trading conditions.
Among the reasons the company gives for the decision are the trend to consolidation of wind turbine concerns and the rising influence of major wind power developers. Turbine prices, says FKI, are continually reducing, contract terms becoming increasingly difficult and investment in new products and inventory rising. DeWind’s traditional market, Germany, has also declined, the company adds.
According to FKI, DeWind will meet existing customer commitments while continuing to look for technology transfer agreements with other parties, particularly in the Far East.
FKI acquired Germany-based DeWind in 2002 for £23 million. DeWind made an operating loss of £6.3 million in the year to March. Its range comprises wind turbines of outputs 600 kW to 2 MW.