Wind Company Changes Focus

Reflecting the worldwide trend toward larger wind turbines, and reacting to local changes in green pricing, Vestas will no longer offer smaller turbines in the kW range and will instead focus solely on their MW size machines. This will significantly alter the production and will result in the termination of 250 hourly employees.

Ringkøbing, Denmark – March 18, 2003 [SolarAccess.com] As expected, the development on most markets tends toward larger turbines. Until recently emphasis has been laid on sales of smaller kW turbines in Italy and Ireland. This has now been altered due to amended depreciation rules in Ireland and the uncertainty concerning the pricing of green certificates in Italy. These conditions mean that sales of kW turbines will be displaced. At the same time Vestas experiences a continuously increasing demand for MW-turbines in Germany, in the United Kingdom and on other European markets. The planned adjustment of Vestas’ manufacturing capacity from kW to MW turbines will thus happen faster than previously expected. Consequently, the labor force has to be adjusted reflecting the level of activity on the blade and assembly factory in Italy. Furthermore, a transfer of employees from kW to MW turbine production in Scotland will take place. The adjustments in Denmark will result in a reduction of the labor force on the blade factory and on the controller factory in Lem, which manufacture components to the kW turbines. It will, however, to some extent be possible to transfer employees working with kW turbines to the production of MW turbines also in Denmark due to the increasing demand for the latter. The level of adjustments in Denmark is not finally defined but discussions in recent meetings preliminarily indicate that Vestas will have to lay off in the magnitude of 250 hourly employees at the blade factory and the controller factory in Lem. “Politically determined fluctuations of such character are part of our daily work,” said Svend Sigaard, managing director of Vestas Wind Systems A/S. “In connection with the present situation, however, the consequences are that we have to reduce the manufacturing of kW turbines simultaneously with increasing the manufacturing of MW turbines. Despite these reductions, Vestas finds it very satisfactory that the market for MW turbines is developing positively.”
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