Nordex CEO 'not concerned' about German coalition break-up or Trump election victory

Even a possible end or weakening of the US IRA won't 'rock the boat', José Luis Blanco tells investors

Nordex CEO Jose Luis Blanco.
Nordex CEO Jose Luis Blanco.Photo: WindEurope

Nordex CEO José Luis Blanco said he is not concerned about the impact of the collapse of the German government or the re-election of Donald Trump as US president and reassured the commitment of his company to both markets.

After kicking out an increasingly estranged Liberal coalition partner from his government Wednesday, German Chancellor Olaf Scholz said he plans to ask for a vote of confidence in January – which presumably he will lose – to clear the way for new elections in March.
“We see no material impact, whether the elections are anticipated by one or two quarters,” Blanco said in an investor call on third-quarter earnings, as the next regular elections in Germany had been scheduled for the autumn of 2025 anyway.

“Legislation is currently in place until the end of 2026,” he added, but it wasn’t clear which legislation he meant. The outgoing government had enacted a flurry of laws and regulations to ease permitting, lessen bureaucracy, make wind turbine and blade transport easier and boost wind and solar tendering volumes.

Nordex expects a significant order volume in the current fourth quarter of 2024, and about “one-third will come from Germany”, Blanco estimated.

Regarding the coming government in Germany, the CEO said: “Who will be elected, and what the new government might do in Germany is super early to say.”

Current opposition leader Friedrich Merz from the conservative Christian Democrats (CDU) had lobbied for reviving nuclear power in Germany, which is “a choice some countries are taking,” Blanco acknowledged.

But he cautioned nuclear “has a 10 to 15 year lead time, so I don’t think this will impact the short or mid-term energy demand of such a powerhouse country that needs to get cheap power and fast power.”

That could only be reached through wind energy, he added.

“I am not very concerned.”

Sticking to Iowa plant reopening
Regarding the US, the Nordex CEO stressed that when the OEM recently decided to re-open its wind turbine factory in West Branch, Iowa, the decision was taken with “a long-term view on the country. ... Electricity demand is driven by a growing economy, and driven by artificial intelligence.”

Wind power “for sure is part of the solution, Blanco said.

Therefore, the election of Donald Trump “has no impact this or next year. And a limited impact the year after even in a worst-case scenario,” he added.

“We keep calm and with a long-term view.”

The Nordex CEO stressed that in Trump’s previous term, record volumes of wind power had been installed in the US market.

“So, let’s stay calm and see what the actions [will] tell. I am not concerned either.”

Asked about a possible end or lowering of manufacturing credits granted under President Biden’s Inflation Reduction Act (IRA), Blanco said that nevertheless, it will still make sense to go ahead with the reactivation of the Iowa plant.

“We can digest, accelerate or slow down, we have a quite diversified supply chain. We can deal with duties, with different scenarios. We will adapt. I wouldn’t say this is gonna rock the boat.”

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Published 7 November 2024, 14:55Updated 7 November 2024, 14:55
EuropeAmericasGermanyUSOlaf Scholz