FOR IMMEDIATE RELEASE
Contact: Richard (Buzz) David
Telephone: (806) 379-6411
Zarges Suspends Wind-Related Operations in the U.S.
AMARILLO (May 8, 2012) - Amid uncertainty in the U.S. wind industry and an overall sluggishness in the global wind market, the managing director of Zarges Tubesca Group says the company has made the strategic decision to suspend its wind division presence in the United States and focus solely on the European wind market. The company opened its first U.S. wind-related manufacturing facility in Amarillo in 2010. Zarges manufactures metal components that are housed inside wind turbine towers including lifts, ladders, platforms and railing systems and is based in Weilheim, Germany.
Despite the rapid growth of the U.S. wind industry over the past several years, future growth has recently been threatened because of an uncertain political climate and questions over whether the federal government will renew production tax credits. Legislators are expected to discuss and vote on proposed legislation that would extend the production tax credits soon. Current production tax credits, which provide 2.2 cents per kilowatt hour for utility-scale wind power producers, will expire in December.
Amarillo Economic Development Corporation (EDC) president and CEO Richard (Buzz) David said, “We are sorry that Zarges has decided to suspend its plans for the U.S. market, but we certainly understand that market conditions are driving this decision and it is in the best interest of the company at this time.” Zarges will vacate its current facility in CenterPort Business Park, which is owned by the Amarillo EDC.
Zarges and the Amarillo EDC have mutually agreed to terminate the provisions of the location incentives agreement.
Zarges Tubesca Group Managing Director Haberstroh stated, “We are very thankful to the Amarillo EDC for their support over the past four years. Although we are disappointed that economic factors have driven us towards this decision, we will always value the relationships and friendships we have established in Amarillo.”
The mission of the Amarillo Economic Development Corporation is to promote business expansion in the greater Amarillo area that builds a stronger, more diversified economy and increases the economic vitality and wealth of the community.For more information, please contact Buzz David at (806) 379-6411.