Globalization and ENERCON

1
Globalization and ENERCON

• What does it mean,
• who benefits from it,
• and which challenges go along with it?

2
Overview

• Globalization
• Development of ENERCON
• ENERCON worldwide
• Profits and Benefits
• Global challenges

3
Globalization

• conditions for success in the world market
• -reliable information
• -modern communication
• -global transportation
• -technical and industrial developments
• the development of globalization is characterized
  by associations and takeover mergers by companies
  multinational corporations are established

4

• today more than 65 of international trade is
  proceeded by international concerns
• globalization is a process with unequal
  economical conditions People living in several
  countries are effected very differently by it,
  concerning the economy, the culture, and the
  society
• the development has reached Germany too. Many
  German companies have affiliated companies in
  foreign countries. Germany could not remain
  competitve in the global marketplace without this
  development

5
The development of ENERCON

• founded in 1984 by graduate engineer Aloys Wobben
• Aurich as location for headquarters optimal with
  always stiff breezes to test new ideas for the
  windmill production
• until 1991 only sales within Germany then
  requests of other countries, such as the
  Netherlands and Portugal
• soon the only production facility in Aurich was
  overwhelmed with work. Additional production
  facilities in Magdeburg und Emden should help to
  accomplish the work

6

• the international market becomes increasingly
  important to ENERCON
• to supply the sites located abroad in 33
  countries, additional production facilities were
  established in Brazil, Turkey, India, and Sweden
• in the past five years the sales have doubled
• in 2000 the profit totalled up to 598 million
  euros in 2005 to 1,3 billion euros
• due to their great success, ENERCON now is the
  German market leader

7
Energy for the World ENERCON worldwide

• ENERCONs more than 8450 wind energy plants are
  spread across 33 countries
• more than 8000 people are employed worldwide
• about 80 engineers are responsible for
  researching and designing new ways of
  constructing windmills which are even more
  environmentally compatible and which sustain a
  minor loss of the gathered energy

8

• the construction of windmills is performed only
  by their own skilled personnel
• construction teams are travelling abroad where
  they are trained and assisted by personnel from
  Aurich
• throughout the world ENERCON has more than 113
  service stations which manage to solve technical
  problems

9
Profits and Benefits

• carbon dioxide (CO2) reduction may occur through
  alternative energy technology like the use of
  windmill technology throughout the world the
  environment benefits by less pollution
• countries receive a way more direct profit with
  wind energy plants
• high winds can generate more electricity than
  needed which either can be stored for windless
  times or be sold expensively

10

• the production of windmills provides many jobs
  throughout the world the countries benefit by a
  reduction of unemployment
• in order to sustain competition, sometimes the
  price of electricity has to be lowered the
  population (especially of developing countries)
  benefits by minor costs
• Wobben Renewable energy is not only for rich
  societies, its also for developing countries
• many people could have a higher standard of
  living

11

• Benefits for Aurich
• more than 2200 jobs
• high trade taxes (in 2004 about 24 million euro)
• promotion of profitability of the city as
  location for successful companies
• ENERCON as biggest source of revenue
• wind power energy (about 69 of East Frisias
  energy is generated by wind power)

12
Global challenges

• Transportation
• the parts of the windmills are produced in
  different countries and have to be transported to
  the construction site
• trucks have to be escorted by the police and
  streets have to be closed to transport the large
  parts
• customs regulations can
  induce delays

13

• Global competition
• involves government espionage and stealing of
  company secrets
• in 1994 ENERCON was about to break into the US
  wind energy market with a invention of gearless
  turbines
• but US competition had spied out their invention
  by tapping data lines, spying on teleconferences,
  and breaking into ENERCON windmills to get
  information about technical advancements