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Globalization and ENERCON

Globalization and ENERCON. What does it mean, who benefits from it, and which challenges go along with it?. Overview. Globalization Development of ENERCON ENERCON worldwide Profits and Benefits Global challenges. Globalization. conditions for success in the world market:

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Globalization and ENERCON

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  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 • ENERCON’s 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, it‘s 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 Frisia‘s 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

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