SGL JV Signs Long Term Wind Turbine Rotor Blade Supply Agreement

SGL Rotec GmbH & Co. KG, a joint venture between SGL Group (51%) and Abeking & Rasmussen Schiffsbau- und Yachtwerft (49%) announced today a long-term agreement with BARD Emden Energy GmbH & Co. KG for the delivery of rotor blades for offshore wind turbines.

The agreement has an initial term of five years with a low triple-digit million € order volume. This includes the delivery of molds and production equipment for upcoming wind farms of the BARD Group. In addition to the first German commercial offshore wind farm project "BARD Offshore 1", BARD has received approval for a further three offshore- wind farms in the Netherlands. Construction for the wind farm BARD Offshore 1" includes 80 turbines and initial first power will supply the grid in 2010.

Dr. Jan Verdenhalven, Head of SGL Group's CFC Business Unit: "This long-term agreement is a major step not only for SGL Rotec as an independent producer and specialist for large rotor blade manufacture but also for the entire offshore market. Top quality plays a decisive role, particularly in the offshore sector, which is difficult to penetrate. This collaboration with BARD will give SGL Rotec the opportunity to further enhance its expertise in the development of manufacturing techniques as well as the manufacture of high-quality rotor blades, thus reinforcing the company's position in this growth market over the long term."

Frank Hagemeister, CEO of BARD Emden Energy GmbH & Co. KG: "We have received approvals for over 300 wind mills including the new projects in the Netherlands and the German North Sea ‚Veja Mate' resulting in a high demand for wind rotor blades in the years to come. With SGL Group as a strong partner we are in a good position to react fast when the offshore market takes off."

Offshore as growth engine for wind power

The relatively new offshore wind power industry is already contributing considerably to the EU energy policy targets. According to European Environment Agency estimations, offshore wind power will represent a high double digit percentage of the European power demand by 2030. This confirms the long-term growth potential of the future "offshore" market.

At present, approximately 160 wind farms along the European coast are either in operation, in an advanced stage of construction or at the planning stage. The European Wind Energy Association expects offshore wind power capacity to increase to 40 GW by 2020, corresponding to the output of approximately 30 large nuclear power plants or 60 traditional coal-fired power plants.

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