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Wind turbine maker Vestas cuts 600 staff in Denmark and Germany 

Credit:  UPDATE 1-Wind turbine maker Vestas cuts 600 staff in Denmark and Germany | Reuters | Sept 27, 2019 | reuters.com ~~

Wind turbine maker Vestas said on Friday it would lay off 590 people at blade factories in Germany and Denmark to rein in costs and cope with a squeeze on prices as state subsidies fall.

Vestas said it would halve it workforce at its factory in Lauchhammer, Germany by cutting 500 jobs, while about 90 workers, paid by the hour, would be laid off in Lem, Denmark.

“Today’s very competitive industry and the fast-moving energy transition means we must introduce new products and solutions where and when the market requires them,” Chief Operating Officer Jean-Marc Lechene said in a statement.

The announcement comes a day after the firm’s main rival Siemens Gamesa said it would lay off up to 600 staff in Denmark as it grapples with falling prices for its products.

Vestas said it would be investing in other blade types driven by demand for its new EnVentus platform, which is built on a modular design to enable more customised turbines to be produced without expanding the number of components.

Vestas is seeking to move to more scalable manufacturing to ensure mass production of wind turbines stays profitable at a time of lower prices for turbines and rising costs due to the U.S.-China trade war.

Governments from Europe to Latin America have been reducing subsidies offered for wind power supply contracts.

The company is also gearing up for its busiest period on record as demand for renewable power sources grows in tandem with global efforts to combat climate change.

Vestas has manufacturing operations in Denmark, Germany, the United States, Brazil, India and China. It employs more than 24,500 people around the world.

Reporting by Stine Jacobsen; Editing by Edmund Blair

Source:  UPDATE 1-Wind turbine maker Vestas cuts 600 staff in Denmark and Germany | Reuters | Sept 27, 2019 | reuters.com

This article is the work of the source indicated. Any opinions expressed in it are not necessarily those of National Wind Watch.

The copyright of this article resides with the author or publisher indicated. As part of its noncommercial educational effort to present the environmental, social, scientific, and economic issues of large-scale wind power development to a global audience seeking such information, National Wind Watch endeavors to observe “fair use” as provided for in section 107 of U.S. Copyright Law and similar “fair dealing” provisions of the copyright laws of other nations. Send requests to excerpt, general inquiries, and comments via e-mail.

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