The World's #1 Renewable Energy Network for News, Information, and Companies.

Vestas to Close Chinese Manufacturing Plant Due to Uncertain Growth

Danish wind turbine maker Vestas is to close a factory in China after already scrapping plans for a manufacturing plant in the UK.

Vestas Wind Systems announced today that up to 350 jobs would be lost as a result of the closure of the Hohhot factory, which makes the company’s V52-850 and V60-850 kilowatt turbines.

Vestas said it was shutting the plant in the next few months because it predicted little growth in the kilowatt turbine sector.

“On the basis of thorough internal analyses, Vestas projects a low market demand for the kilowatt platform in the coming years,” it said in a statement, which added that the company “remains firmly committed to China and has confidence in China's long-term growth in the wind energy industry”.

Following the closure — which is expected to save $12.5m a year — Vestas will have about 2,600 staff in China.

On Friday, Vestas announced it was scrapping plans for a factory at the port of Sheerness in England. The company’s original statement gave no reason for the withdrawal but it subsequently admitted it had not received a single order for the V164-7.0 MW turbines that would have been made at the plant.

Juan Araluce, chief sales officer at Vestas Wind Systems, added that the company’s “strong commitment to the development of both the offshore and onshore wind industries is not affected by this decision. We will remain active across the two markets in the UK as they both continue to show considerable potential.”

Maria McCaffery, chief executive of RenewableUK, was disappointed but stressed that the UK “remains an attractive place for manufacturers and members of the supply chain to have a base, highlighting plans by Areva for a UK factory.

On a brighter note for Vestas, the company today signed its largest ever service and maintenance renewal agreement. The deal with EDP Renováveis is to service more than 1100 turbines across 30 wind plants in the US, Spain, France, Romania, Portugal and Italy, representing a total capacity of 1,897 MW.

Vestas president Ditlev Engel said the contract was “a demonstration of our customer focus, service orientation and versatility in different wind markets and site conditions.”

Image: Closed sign via Shutterstock

RELATED ARTICLES

Renewable Energy Finance

Clean Energy ETFs Are on a Tear

Eric Balchunas, Bloomberg Green investing used to be synonymous with losing money. But while the S&P 500 Index is up 2 percent this year, and the MSCI All-Country World Index is up 5 percent, clean energy ETFs have double-digit re...

Wheels, Towers and Trees: Unconventional Renewable Energy Technologies in the Pipeline

Andrew Williams, International Correspondent A number of companies around the world are developing novel technologies in an effort to grab a slice of the global renewable energy market.  Although many of these technologies are simple incremental improvements to e...
UK Parliament Clean Energy Leaders

UK Government Names Clean Energy Cabinet Members

David Appleyard, Contributing Editor With the UK general election now over and a majority Conservative Party government in place, the re-elected Prime Minister David Cameron has now named key members of the government charged with steering the UK’s clean energ...
Microgrids

Coast to Coast and Across the Electric System, Microgrids Provide Benefits to All

Dick Munson, Environmental Defense Fund At the most obvious level, microgrids could disrupt today’s utilities and their regulated-monopoly business model, because they challenge the centralized paradigm. In a nutshell, microgrids are localized power grids that ha...
Kelvin Ross is Deputy Editor of Power Engineering International magazine and its associated publications – Middle East Energy and the Global Power Review. Previously, Kelvin was News Editor at UK online news site Energy Live News, Production Edito...

CURRENT MAGAZINE ISSUE

03/01/2015
Volume 18, Issue 3
file

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

SOCIAL ACTIVITY

Tweet the Editors! @megcichon @jennrunyon

FEATURED PARTNERS



EVENTS

Doing Business in Brazil – in partnership with GWEC, the Global Win...

Brazil is one of the most promising markets for wind energy.  Ranke...

Energy Storage USA 2015

Energy Storage USA is the leading conference in the United States focuse...

Wind Power Central America

Wind power projects are expected to reach 46GW of total installed capaci...

COMPANY BLOGS

SunEdison Expands Residential Market Offerings with New PPA, Sales ...

SunEdison has largely focussed on the commercial and utility-scale solar...

Are You Ready for a Natural Disaster?

Guest post by Jenna Clarke  Living in the Shenandoah Valley of Virg...

Deadline for Inclusion in Solar Power World's Top Solar Contractors...

UPDATE: The official deadline for the Solar Power World T...

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS